Jordan Jones is employed at a local library on a casual basis but sources most of his income from a substantial investment portfolio that he manages in his spare time. Jordan reports his investment income and pays a PAYG instalment quarterly using an IAS (Type B) Option 2. Jordan has a pre-printed instalment rate of 22% but due to an increase in his borrowing costs, Jordan believes this may be too high. He has provided the following information relating to his expected investment income for the year:
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Dividend Income |
39,339 |
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Interest Income |
28,301 |
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Investment deductions |
33,820 |
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Estimated income tax payable |
10,146 |
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T1 instalment income for the September quarter |
15,890 |
REQUIRED:
Calculate Jordan’s revised instalment rate and complete the Option 2 box on his September IAS, including the variation reason code. Record the calculations that you used in the text box below then record on the Activity Statement panel:
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Calculations: |
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Option 2: PAYG Instalment Rate |
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PAYG Instalment income |
T1 |
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If varying the T2 rate, complete T3, T11, T4 |
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New varied rate |
T3 |
. |
% |
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T3 x T1 |
T11 |
$ |
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Write the amount at 5A on the front |
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Reason code for variation |
T4 |
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