Taxation Law of Australia

Running head: TAXATION LAW OF AUSTRALIA
Taxation Law of Australia
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Author’s Note:
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1TAXATION LAW OF AUSTRALIA
Table of Contents
Answer to Question 1:.....................................................................................................................3
Part a:...........................................................................................................................................3
Part b:...........................................................................................................................................3
Part c:...........................................................................................................................................3
Part d:...........................................................................................................................................3
Part e:...........................................................................................................................................4
Part f:...........................................................................................................................................4
Part g:...........................................................................................................................................4
Part h:...........................................................................................................................................5
Part i:............................................................................................................................................5
Answer to Question 2:.....................................................................................................................6
Part a:...........................................................................................................................................6
Part b:...........................................................................................................................................6
Part c:...........................................................................................................................................7
Part d:...........................................................................................................................................7
Part e:...........................................................................................................................................8
Answer to Question 3:.....................................................................................................................8
Part a:...........................................................................................................................................8

2TAXATION LAW OF AUSTRALIA
Part b:...........................................................................................................................................9
Part c:...........................................................................................................................................9
Part d:.........................................................................................................................................10
Answer to Question 4:...................................................................................................................11
Part a:.........................................................................................................................................11
Part b:.........................................................................................................................................11
Part c:.........................................................................................................................................12
Part d:.........................................................................................................................................12
Part e:.........................................................................................................................................12
Answer to Question 5:...................................................................................................................13
Issues:........................................................................................................................................13
Laws:..........................................................................................................................................13
Application:...............................................................................................................................14
Conclusion:................................................................................................................................15
References:....................................................................................................................................16

3TAXATION LAW OF AUSTRALIA
Answer to Question 1:
Part a:
As explained in the “Taxation Ruling TR 2018/4”, the methodology utilised to compute
or ascertain the economic life of the asset for depreciation purpose is mentioned in accordance
with “Section 40(100) of ITAA 1997”.
Part b:
As per “Division 13 of ITAA 1997”, considerable explanation has been provided, in
which the taxpayer could obtain access about detailed tax offset1.
Part c:
In case of Australian residents with the maximum bracket of income, there is application
of a particular tax rate. For above taxable earnings of $180,001 and more, the Australian
residents need to incur $54,097 along with $0.45 for every $1 made beyond $180,001.
Part d:
It is mentioned under “Section 108-10(2) of ITAA 1997” that collectible discloses those
assets set aside mainly for private use. The special rules applicable on the collectibles have to be
in compliance with “Section 118-10(1) of ITAA 1997”, which states that there is ignorance of
capital gains under the first component; in case, the collectible has cost base below $5002.
1 Stephen, Barkoczy, Foundations Of Taxation Law 2014.
2 John D., Buenker, The Income Tax and the Progressive Era. Routledge, 2018.