Q5 - wants to salary package $5,000 to superannuation;...

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Problem Set Week 5 1. How does dividend imputation work? Why did the federal government bring in the franking credit system? 2. Why do you think that salary sacrifice has become very popular? 3. Amanda and Chen are contemplating purchasing a portfolio of shares. They have a joint account with Westpac Bank. Chen works full time and pays tax at the top marginal rate, and Amanda is at home with twin boys. What is the best way of organising their affairs to minimise tax? Chen is considering putting all these investments in Amanda’s name. Identify the benefits of doing so and any possible costs. 4. Vivian is negotiating her salary package with her new employer, Spindex Ltd. She
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Unformatted text preview: wants to salary package $5,000 to superannuation; $10,000 for private expenses; and $1,500 for membership of her professional association. Outline the likely FBT applicable to each of the items and identify advantages and disadvantages of salary packaging each of these items. 5. Patrick is considering purchasing an investment property for $350,000. The property was built in 2006. Patrick hopes to rent the property for $350 per week. He expects that annual costs to maintain the property, insurance and rates etc. will be approximately $4,000 and interest costs on his loan will be $24,000. Outline the income and capital gains tax effects for his investment choice....
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