Reference no: EM132571742

Question - The Smyth family, residents of Sydney, have been living in Australia for over 11 years. The family includes Kevin who is a husband and father, Janice, Kevin's wife, and their only child, Billy who is 16 years old. Janice's father, an invalid pensioner, also lives with the family.

Kevin's receipts and expenditure for 2019/2020 are as follows

Receipts $

Wages 55,000

Car allowance provided by employer 1,800

Entertainment allowance provided by employer 750

Expenditure

Car expenses (on a cents per kilometre basis) 2,400

Mobile phone (75% used for work purposes) 1,000

Entertainment expenses incurred for work purposes 1,500

Donation to Feed the Family (registered charity) 120

Dental expenses (wife) 240

Medical expenses (net of refund - Kevin) 480

In addition:

Janice, who does not have a job, received interest income of $780 from a personal investment;

Billy attends College for the whole year as a full- time student; and

Janice's father, aged 58, is in receipt of a disability support pension of $1,250 (the pension being exempt from tax).

Required - From the above information, prepare a statement of the assessable income and deductions of Kevin Smyth, a resident of Sydney, for the current income year.

1. Calculate Kevin's tax payable.

2. Explain why Medicare levy is or isn't payable.