Australian Taxation Law

This document provides information and answers to questions related to Australian Taxation Law. It covers topics such as tax offsets, superannuation guarantee, partnership tax, and GST. The content includes scenarios, explanations, and references to relevant sources.

Australian Taxation Law

Contents
TASK...............................................................................................................................................3
Week 6 – Question 1........................................................................................................................3
Scenario 1:..............................................................................................................................3
Scenario 2:..............................................................................................................................3
Scenario 3:..............................................................................................................................3
Week 7 – Question 2........................................................................................................................3
Week 8 – Question 3........................................................................................................................4
Week 9 – Question 4........................................................................................................................5
Week 10 – Question 5......................................................................................................................5
REFERENCES................................................................................................................................7

TASK
Week 6 – Question 1
Scenario 1:
In the given scenario the sum of invalid tax offsets of John is $116,000 as here the $4,000
would be entirely tax exempt since Paul is person with a disability thus any income to such
individuals is completely exempt for liability of tax.
Scenario 2:
If here in given scenario John's total adjustable income is amounting $63,000 while Paul's
total adjustable income is amounting $900, as well as John 's overall taxable income amounts to
$120,000 thus in this case the invalid tax offsets would be $56,100 for respective financial year.
Scenario 3:
If for a certain period Paul is ill/sick and does not earn any earnings, then only John's
income would be taken into account when assessing invalid tax offset. Here, gross taxable
income amounts to $120000 and adjusted taxable income amounts to $41000 so the gross offset
sum is $79000 for year (Invalid and Invalid Carer, 2019).
Week 7 – Question 2
Possible repayments allow increasing compensation packages in regard to the voluntary
deductions. Here, Oliver has yet to suggest making a compulsory interest payment in excess of
the statutory return cut-off with one year of profits for his remaining profits. It is portion of the
appraisal notice, and Oliver must enter into pension contribution arrangement that will
include marginal benefit. After which, he can also obtain financial guidance in case users join
this arrangement. A certain voluntary compensation from the employer by Oliver will not have
been tax deductible.
If the corporation embraces discretionary contributions on behalf, he may be obligated to
affirm tax exemption. The organization will also pay some Fringe Benefit Tax for interest
payments. This payment is not correlating data to add to wage surrender if guide businesses pay
Oliver income to a third party (e.g. monthly premium charge, cash pay-outs, pension payments
or contractual card compensation). After-tax or aggregate revenue figures are provided with
these expenses by 3rd parties.

Pay-outs and loans provided via interposed organizations may trigger Division 7A. This
requires a private corporation indirectly transferring money via one or even
more interrelated entities to shareholder or their partner. An interposed party may be individual,
a corporation, partnership firm or trust which is placed among a private firm and its shareholders
or associate. Division 7A may apply where shareholder or partner is target entity to
which payment or loan to private company is finally directed. When Oliver submits tax return or
mention foreign profits, the affirmation statement may include an instant rebate or abroad fee till
his optional salvation is imposed to his consideration. At the time the lending is indicted
to company in regular loan, and at some point, a lending is given to a person, in consideration
of lender or his life partner. When a private company tends to make mortgages/loan to an
investment company or its associate in any year, creating a corporatized loan may require
that shareholder or affiliate.
Week 8 – Question 3
A partnership is group or affiliation of individuals who operate a firm and allocate earnings
or losses among themselves. In Australia if individual want to setting up business together
with friend or relative, individual could run it as partnership. Specifics of businesses and
firms are stored in Australian Business Register at time they register firm and get an Australian
Business Number (ABN). The creation and operation of a partnership firm is fairly affordable.
The partners herein share revenue, incomes and losses. Formal relationship contract is not
necessary to the existence of a relationship but is good practice. A partnership arrangement will
assist to avoid misunderstandings including conflicts about whatever each partner contributes
to partnership, and what partners are entitled to earn from business' profits (Partnership tax
return. 2019). This is especially essential for taxation purposes when profit or losses also aren't
distributed equally between partners. The partnership, besides this, is obligated to pay its staff
members for superannuation. As in given case David and Emma are individual are married and
collectively have several investment properties in the Sydney. Both signed formal partnership
arrangement agreement to structurally administer their investment assets and decided to allocate
95 percent of net income from rental property to Emma while 5 percent to David. They have
decided David would cover the highest investment losses. There norm based on discussed
provisions both members David and Emma who have entered into an agreement to share rental

income of property are required to get registered their firm as they are sharing income and losses
in certain profit-sharing ratio.
Week 9 – Question 4
Employers are obligated to pay "Superannuation Guarantee" contributions to an authorised
Superannuation Fund with respect to their workers at 9.5 percent (as in year 2018) of "Ordinary
Time Earnings" of employees — which usually comprises of salaries including benefits, fees,
bonuses but not the overtime. Employers also aren't expected to make donations to the company
for workers making lower than $450 month, nor for workers under 18. However,
whether employee under the age of 18 receives over $450 per month before taxation or works
greater than Thirty hours week full-time, part-time either casual, employer may still be obligated
to pay superannuation. Furthermore, if workers upwards of 70 years of age work above 40 hours
in 30-day period, then employer can spend contributions (Tax on superannuation fund. 2019).
Employer payments must be paid on quarterly basis. As in given case Anna who serves as an
administrator for Eastern Medical Centre with marginal tax rate of forty seven percent. In
Jun 2020, she 'd turned 48. Medical Centre, under Superannuation Guarantee power, made a
significant contribution $13,000. Anna signed Eastern Medical Centre wage compensation deal
to contribute 10 percent of her wage to Superannuation Plan. This increased contribution has led
to an increase in an increased $17,000 contribution in current year. Thus, tax liability for Anna
will be nil as this contribution is deduction in hand of Anna and employer is required to make
contribution up to 9.5 percent at least and such contribution is allowed to her employer.
Week 10 – Question 5
GST is not normally charged to users where offer vacation accommodation in Australia.
Consequently, if one leave accommodation in the Australia on short-term basis, will not be
needed to enrol for GST as well as levy GST to guests. However, as the exception, when short-
term rental is regarded to be supply of commercial accommodation as well as annual turnover of
such a supply surpasses $75,000, party should register for it and start charging GST on supply.
Holiday accommodation would be regarded commercial accommodation if it is worthy of
numerous occupancies at given time and contains central management. Darryl Kerrigan
is director of DK Pvt Ltd, investment property corporation located in the Sydney, and a
corporation registered for GST.DK Ltd has made the decision to rent their existing 20 office

units for building work due to effect of COVID-19 in February 2020. DK Ltd hires a real estate
specialist, Dennis, to sign rental deals. Dennis is professional lawyer with $300,000 per year
as practitioner revenue. In return for services to DK. Company offered Dennis a lease-free office
in town of Sydney. Here, Rental value of the office is 38,000 dollars annually. When landlord is
registered, he or she is liable to pay GST since he or she is no longer granted a license,
then occupant is liable to pay GST. After all, GST is justifiable throughout this particular case
that is not applicable in this context but since existing homes are been using for
recreational rather than and outside the GST. Since this tax primarily applied to services supplied
in accordance with Sec. 7 of Central Goods and Services Tax Act 2017, it's been described in
order to recognize parameters, including term 'supplies.' In the scenario referred to by DK Pvt
Ltd under GST Act, with that said, transfers are regarded as supplies regardless they are not
factored, including supplies between related parties, when such supplies are being agreed to be
made during or other than business. Acquisitions of potential M&A activities at a preliminary
phase may be too distant from any current production taxing financial structure for input-tax
benefits to be refused in spite of the anticipated supply.

REFERENCES
Books and Journals:
Invalid and invalid carer. 2019. [Online] Available Through:
< https://www.ato.gov.au/Individuals/myTax/2017/Tax-offsets/Invalid-and-invalid-carer/
>
Partnership tax return. 2019. [Online] Available Through:
https://www.ato.gov.au/Forms/Partnership-tax-return-instructions 2019/?
anchor=Generalinformation#Generalinformation
Tax on superannuation fund. 2019. [Online] Available Through:
<https://www.ato.gov.au/Forms/Fund-income-tax-return-instructions-2019/?
anchor=SectionCDeductions#SectionCDeductions>
Input tax credits. 2019. [Online] Available Through:
< https://www.ato.gov.au/Business/GST/In-detail/Rules-for-specific-transactions/
Business-asset-transactions/Mergers-and-acquisitions---claiming-input-tax-credits/?
page=5>.