Final Practice - QUESTION 1 Namu is 25 and he is an...

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QUESTION 1: Namu is 25 and he is an Australian residence for tax purposes. He runs a fruit shop where he earned 90 000 dollars in net income. He does have private health insurance. What is his tax liability (excluding medicare levy surcharge part?) He meets the monetary threshold required to pay for medicare levy surcharge since his income is over 84 000. However, since he has private health insurance, he is not liable for the surcharge. 18200 times 0% + 370000-18200 times 19% + (80000-37000) times 0.325 + 10,000 times 37% = Tax Liability QUESTION 2: Namu is 10 years old. He recieved his late Grandfather’s trust distribution of $10 000. What is his tax payable? Since it is a testamentary trust, although Namu is a minor, he will be treated as an adult. The income from the trust will be excepted income. Thus, since it is less than the tax-free threshold, he pays 0% tax. QUESTION 3: Namu buys a unit and lives in it for 3 years. He then moves out to live with a friend, while his cousin occupies the unit rent free. He does not treat any other dwelling as his main residence. 12 years later, he wants to sell the unit. Can he sell it CGT-free? “Main residence” is where you are living. However, you may still sell it after an unlimited number of time if it is not for income. E.g. holiday house or for charity.
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