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Charlie is an Australian resident. He is a full-time high school student and is 16 years of age as at 30 June 2021.

Charlie derived the following amounts during the 2021 income year:

$

• Gross wages earned working part-time at Coles Supermarket

(includes PAYG withholding tax of $400 deducted) 7,400

• Rental income derived from a rental property left to him by his

grandmother who passed away six years ago 21,500

• Holiday money received from his grandfather 500
• Interest on bank account (account used to receive above income) 100
• 100% franked dividends received from Westpac Ltd shares.

The shares were bought for Charlie by his older brother, Sean. Sean

has an arrangement that Charlie pays him the amount of the dividends . 700

Required:

1. Calculate Charlies taxable income for the year ended 30 June 2021 showing the eligible taxable income and excepted assessable income components of his income.

2. Calculate Charlies tax payable for the year ended 30 June 2021.

Question 4:

Harry has worked for Titanic Construction Holdings Ltd, a construction company for the past 28 years. Harry was born in August 1957. As at the last day of this income year (ie 30 June 2021), Harry is 63 years of age.

On 11 April 2021, Harry resigned and received an employment termination payment (ETP) from his employer totalling $250,000.

Required:

Calculate how much income tax (including the 2% Medicare Levy) Harry will need to pay in respect of his $250,000 employment termination payment.

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