Taxation Part 6 Flashcards
What is substantiation?
Written evidence that a work expense was actually incurred by the person who is claiming the deduction
What can substantiation take the form of?
Invoices, receipts, bank statements, logbooks or diary entries
What does substantiation contain?
Details of the name of the supplier, the amount of the expense and the date on which it was incurred
What do taxpayers have to pay towards Medicare?
A 2% medicare levy of their taxable income
What happens if you do not have private hospital insurance?
You may have to pay the Medicare Levy Surcharge (MLS) on top of the Medicare Levy
What is the Medicare Levy Surcharge designed to do?
Encourage individuals to take out private hospital cover, and use the private hospital system to reduce demand on the public Medicare system
At what threshold of taxable income do you not have to pay the Medicare levy?
If your taxable income is less than $21,655
What is the taxable income threshold for you to not have to pay any Medicare Levy Surcharge?
$90,000 or less
What is the taxable income threshold for you to have to pay a 1% Medicare Levy Surcharge?
$90,001-$105,000
What is the taxable income threshold for you to have to pay a 1.25% Medicare Levy Surcharge?
$105,001-$140,000
What is the taxable income threshold for you to have to pay a 1.5% Medicare Levy Surcharge?
$140,001 or more
How much tax would you have to pay if you have a taxable income between $0-$18,200?
No taxable income
How much tax would you have to pay if you have a taxable income between $18,201-$37,000?
19% for each $1 over $18,200
How much tax would you have to pay if you have a taxable income between $37,001-$90,000?
$3,572 plus 32.5% of amounts over $37,000
How much tax would you have to pay if you have a taxable income between $90,001-$180,000?
$20,797 plus 37% of amounts over $90,000
