Question
Answered step-by-step


You are a financial adviser and the following information is an extract of data you gathered as part of fact-finding during an initial client consultation for married couple Jacinda (aged 38) and Steven (aged 40) Oldham. Jacinda has opted for a part-time teaching assignment with the local school for the last 3 years. Three years ago, she took a career break from her full-time teaching career given growing children. Steven works as a Senior Clinical Nurse Consultant at a local government hospital. They have two children who are aged 12 and 14.

• The couple would like to know how much money they will receive after paying tax for the year ended 30th June 2020. They would like advice on how to reduce their tax liability in the future.

• The Oldham's have invested over the years in shares of several banks. They have come to you understand how they should invest in the future. Part of this investment is for the higher education of the children. The balance is to buy a property in the country for the postretirement phase.

• The Oldham's life goal has been to buy a property in the country and live a quiet life 20 years from now. They have come to you see if they can achieve this goal.

Image transcription text

Current Assets and Liabilities Assets (Ownership) Current Liability Current valuation $ (Ownership) valuation $ Home and Contents (Joint) 720,000 Credit cards (Joint) 6,000 Car (Joint) 35,000 Includes the annual NAB Joint Savings bank Account 8,000 interest cost Investments: (Steven) Car loan (Joint) 30,000 NAB bank Shares 72,000 5-year term at 12% ANZ bank Shares 120,000 Macquarie Group Shares 220,000 Superannuateon- (Jacinda) 225,000 Superannuateon- (Steven) 450,000 Steven's Superannuateon asset allocation Investment Asset Allocation Performance p.a. after tax Australian Shares 45% 4% Cash & Fixed Interest 20% 1.4% International Shares 25% 10.80% Property 10% 3.10%

... Show more

Travelling to and from work- $2,500 (Steven) and $600 (Jacinda)

• Donations to registered Charity $2,000 (Jacinda)

• Teacher Union Membership (Jacinda).........$1,000

Required: 1. Calculate Jacinda's and Steven's after-tax income for the year ended June 30th, 2020. For calculation, assume the figures are of the year 2019-20.

Explain how Jacinda and Steven could reduce their tax liability by splitting their income. Show the effect (calculation) this strategy would have had, if they had split income for the tax year ended 30 June 2020.

Answer & Explanation
Verified Solved by verified expert
<p>molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Na</p> Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet

Unlock full access to Course Hero

Explore over 16 million step-by-step answers from our library

Subscribe to view answer

laoreet. Nam risus

iscing elit. Nam

a molestie

acinia

cing elit. Nam lacinia

inia pulvinar to

ongue vel laoree

, dictum vitae

rem ipsum dol

, consec

ipiscing elit

fm risu

gue

dictum vitae odio. Donec aliquet. Lor

usce dui lem risuusce dui lem risu

fficitu

et, consect

e vel laoreet ac,

f

f

et, consecte

lestie

ic

,

su

itur laoree

et, consect

, consec

x

a molestie co

icitur laoreet. Nam risu

facilisis. Pellentesque

f

sus ante, d

m risu

ng elit. Nam la

f

ng elit. Nam la

inia pulvi

trices

inia p

a. Fus

gue

at, ultrices ac magna. Fusce dui lectus, congue vel lao

pulvinacinia pulvinarec aliquet. Lorem ipsum

a. Fusce dui lec

e vel laoreet ac, dict

sus ante, dapibus

amet, c

x

ec a

ic

s

itur l

f

llen

ce

gue

tesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet

Step-by-step explanation

nec facilisis. Pellentesque dapibus efficitur

gue

lestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam la

gue

usce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec

, dictum viinia p

ipiscing elit. Nam

pulvinar tortor nec

ec aliquet. Lorem ipsum dolor

nec facilisis. Pellente

iscing elit. Nam

ec aliquet. Lorem ipsum dolor

iscing elit. Nam

tesque dapibus efficitur laoreet. Nam risus

iscing elit. Nam

a molestie

acinia

cing elit. Nam lacinia

inia pulvinar to

ongue vel laoree

, dictum vitae

rem ipsum dol

, consec

ipiscing elit

fm risu

gue

dictum vitae odio. Donec aliquet. Lor

usce dui lem risuusce dui lem risu

fficitu

et, consect

e vel laoreet ac,

f

f

et, consecte

lestie

ic

,

su

itur laoree

et, consect

, consec

x

a molestie co

icitur laoreet. Nam risu

facilisis. Pellentesque

f

sus ante, d

m risu

ng elit. Nam la

f

ng elit. Nam la

inia pulvi

trices

inia p

a. Fus

gue

at, ultrices ac magna. Fusce dui lectus, congue vel lao

pulvinacinia pulvinarec aliquet. Lorem ipsum

a. Fusce dui lec

e vel laoreet ac, dict

sus ante, dapibus

amet, c

x

ec a

ic

s

itur l

f

llen

ce

gue

tesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet