7 Income Tax Liability[ppt]

Foundations of taxation law 77b cch australia limited

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Foundations of Taxation Law [¶7.7](b) © CCH Australia Limited Repayment of HELP debts Repayment of HELP debts HELP debts must be paid under the tax system  where repayment income exceeds prescribed  annual threshold amount  The rate of repayment varies depending on the  level of the person’s repayment income Repayment income is the sum of the person’s:    taxable income net investment loss reportable fringe benefits total exempt foreign income reportable superannuation contributions
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Foundations of Taxation Law HELP thresholds and rates HELP thresholds and rates HELP repayment income Repayment rate Below $43,150 Nil $43,150 – $48,066 4% $48,067 – $52,980 4.5% $52,981 – $55,764 5% $55,765 – $59,943 5.5% $59,944 – $64,919 6% $64,920 – $68,336 6.5% $68,337 – $75,203 7% $75,204 – $80,136 7.5% $80,137 and above 8% [7.7](c)
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Foundations of Taxation Law [¶7.9](a) © CCH Australia Limited Reconciling income tax with GST Reconciling income tax with GST To prevent overlap between the income tax and  GST laws, the following reconciliation rules  apply: GST on taxable supplies and increasing  adjustments are non-assessable non-exempt  income (s 17-5 ITAA97)) Input tax credits and decreasing adjustments are  not deductible (s 27-5 ITAA97)
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Foundations of Taxation Law [¶7.9](b) © CCH Australia Limited Reconciling income tax with FBT Reconciling income tax with FBT To prevent overlap between the income tax and  FBT laws, the following reconciliation rules  apply: Income which is a “fringe benefit” under the  FBTAA is non-assessable non-exempt income  (s 23L(1) ITAA36) Income which is an “exempt benefit” under the  FBTAA is generally exempt income (s 23L(1A))
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