How to calculate
Enquiry:
I am a self-employed interior decorator, 55 years old, single, not registered for GST.
Lodged my 2015/16 income tax return, 2016/17 national taxable income $48,000 (including $2,000 donation and $500 tax agent’s fee); paid $1850 to a private health fund from 1 Dec 2016 and claimed $250 for TFN amounts withheld from interest.
Could you show me how to calculate my 2016/17 PAYG instalments?
Calculation Process:
Under ITAA97 s 61-205, a rebate of 26.79% applies for your private health insurance from 1 Dec 2016 to 31 Mar 2017, and 25.93% from 1, Apr 2017 to 30, Jun 2017.
- Tax offset of private health insurance= $1,057*(121/365) *26.79%+$793*(91/365) *25.93%=$145.13
Under ITAA36 s 159H, Victoria is entitled to a low-income rebate.
- Low income rebate= Maximum rebate amount- reduction in rebate
- =$445- [($48,000-$37,000) *0.015] =$280
Under taxable income rate 2016/17
- Tax payable on taxable income=$0(under $18,200) +($37,000-$18,200) *19%+($48,000-$37,000) *32.5%
- =$7,147
- Medicare Levy= $48,000*2% =$960
So, PAYG tax instalment= $7,147-$145-$280+$960=$7,682