Reference no: EM132469871

(Tax calculation under averaging)

Rikki Teabridge had the following income during the 2017/18 tax year:

Net Business Income from Primary Production               $35,000

Gross Wages from part-time job at local supermarket  $20,000

• Rikki's average income was $20,000.
• Rikki had no other assessable income or deductions.
• PAYG tax of $2,000 was withheld from Rikki's wages.
• Rikki is covered by adequate private health insurance.

Required:

Question 1: Complete the following statement showing Rikki's tax payable for the 2017/18 tax year including any averaging adjustment.

Notes/Workings (if any)

Tax on Average Income

Rikki's average income is           $20,000

Tax on                                  $20,000

                                                $342

Comparison of Tax Rate

342/20,000 x 100/1

1.71%