LAWS19033 - Taxation Law and Practice: Assignment

Running head: TAX
Tax
Name of the Student:
Name of the University:
Authors Note:

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Table of Contents
PART – A...................................................................................................................................2
Answer to question 1..................................................................................................................2
Answer to Question 3.................................................................................................................2
Answer to Question 6.................................................................................................................4
Answer to Question 7.................................................................................................................4
Answer to Question 8.................................................................................................................4
Answer to Question 9.................................................................................................................5
Answer to Question 10...............................................................................................................5
Part B..........................................................................................................................................5
Part C..........................................................................................................................................7
Part D.........................................................................................................................................8
Part E........................................................................................................................................10
Reference..................................................................................................................................11

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PART – A
Answer to question 1.
In accordance with the Constitution of Australia, the primary source of the
Commonwealth Parliament’s taxation power is mostly comes from Sections 51(ii), 53, 55, 90
and 96.
According to Section 51(ii) of Australian Constitution, the power to create laws in
regard to taxation is given to the Commonwealth Parliament (Gitman et al. 2015). However,
there are certain conditions that those laws do not differentiate between states or parts of any
states.
Answer to question 2.
It is observed that Acts mainly create Tax Laws in Australia. Therefore, the primary
source of Australian Tax Laws comes from Legislation that are various Parliamentary Acts
and Regulations that are delegated legislation. Thus legislation is the primary or main or first
source of Australian Tax Laws. The second source of Tax Laws in Australia are the Cases
which interpret the legislation such as decisions of court, tribunals, etc. Third source of tax
laws in practise in Australia is the Tax Rulings by the Commissioner of Taxation (Katic &
Leigh 2016).
Answer to Question 3
According to the Australian Taxation Office, Taxation Ruling TR 98/17 discusses
about the residential status of any individual who is entering Australia (Braithwaite 2017).
According to TR 98/17, this ruling is applicable to most of the individuals those who are
entering Australia which includes the followings:

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a. Any migrants,
b. Any student who is studying in Australia,
c. Any person who came to visit Australia i.e. a Visitor,
d. Any worker(s) who came along with planned contracts of employment.
Answer to question 4.
In Australia, Medicare gives the residents of Australia health care access. Medicare
Levy of 2% has to be paid by the taxpayers in Australia which is partly funded by them. If
one’s taxable income is below a certain limit then that person’s Medicare levy might get
reduced or might not have to pay any levy at all (Kucukvar et al. 2014). On the other hand,
one might need to pay Medicare levy surcharge (ML S) if he/ she have health insurance of a
private hospital. The individual meets some medical requirements or a resident of other
country are not entitled to Medicare Benefits then he/ she might be exempted from paying the
Medicare Levy.
Answer to Question 5
According to Australian Law, misleading or dishonest conduct is a principle. As per
Schedule 2 of the Competition and Consumer Act 2010, any conduct by companies in trade
and commerce that is misleading or false or like to misguide is prohibited under Section 18 of
the Australian Consumer Law (Taylor & Richardson 2013). Moreover, prohibition of
misguiding, false, or deceptive conduct in terms of financial services is clearly stated under
Section 12DA of the Australian Securities and Investment Commission Act 2001.
The main objective of this principle is to provide security and safety to the consumers
from being misguided by businesses.