Taxation of Employment Income under Australian Income Tax Assessment Act 1997

Australian taxation law

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Summary of the case....................................................................................................................3
Provisions under the income tax assessment act 1997................................................................3
Analysis of the present case.........................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................6

INTRODUCTION
Income tax is charged on the assessable income of the assessee. The government of Australia
prescribed various rules and regulations for assessing the income of the person. In Australia, the
Income Tax Assessment Act 1997, defined all the principles and standard for computing the
income of the assessee (Doerrenberg, Peichl, and Siegloch, 2017). In this Act, various deductions
and exemption are prescribed; the assessable income is computed after considering all the
deductions and exemption (Chardon, Freudenberg and Brimble, 2016). The present study
revolves around the taxation of the employment income. The tax is levy on the income of the
employee which is received in terms of the salary and wages by the employer. In this study,
relation between the income and the expenses which are incurred for earning the income along
with the eligibility of the deduction from the assessable income of the person during the year is
also analysed.
MAIN BODY
Summary of the case
The present study is related to the eligibility of the deduction of the expenses from the assessable
income of the person. In the given study, it is stated that the employee does not agree with the
tax return prepared by the company. The employee contended that the expenses were related to
the period in which he was not earning the income. Therefore the deduction is not allowed from
the assessable income. In this case, the employee was working as a management accountant and
recently started the part-time teaching job in an institute also. For this, the person acquired the
rental property and incurred the interest and expenses related to the rental property. The
objection of the employee is that in the first four months he was not earning the income.
Therefore, the expenses related for the first fourth is not allowed for the deduction from the
assessable income.
Provisions under the income tax assessment act 1997
The income tax is chargeable on the taxable income of the person. The Income Tax Assessment
Act described various rule and regulation for computing the taxable income of the person. With
this regards the government provide certain exemptions and also certain deductions of the