Taxation Law of Australia

Running head: TAXATION LAW OF AUSTRALIA
Taxation Law of Australia
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1TAXATION LAW OF AUSTRALIA
Table of Contents
Question 1:.................................................................................................................................3
Answer to Part a:....................................................................................................................3
Answer to Part b:....................................................................................................................3
Answer to Part c:....................................................................................................................3
Answer to Part d:....................................................................................................................3
Answer to Part e:....................................................................................................................3
Answer to Part f:....................................................................................................................4
Answer to Part g:....................................................................................................................4
Answer to Part h:....................................................................................................................4
Answer to Part i:.....................................................................................................................5
Question 2:.................................................................................................................................5
Answer to Part a:....................................................................................................................5
Answer to Part b:....................................................................................................................6
Answer to Part c:....................................................................................................................6
Answer to Part d:....................................................................................................................7
Answer to Part e:....................................................................................................................7
Question 3:.................................................................................................................................8
Answer to Part a:....................................................................................................................8
Answer to Part b:....................................................................................................................8
Answer to Part c:....................................................................................................................9

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

3TAXATION LAW OF AUSTRALIA
Question 1:
Answer to Part a:
According to the “Taxation Ruling of TR 2018/4”, there is a clarification provided
for the methods that the Taxation Commissioner has used in order to ascertain the effective
life of assets for depreciation, in accordance with “Section 40 (100) of ITAA 1997”.
Answer to Part b:
The details in relation to the available tax offsets could be obtained from “Division 13
of ITAA 1997”.
Answer to Part c:
The top tax rate, which is applicable to an Australian resident taxpayer during the
2018/19 tax year, is $54,097 plus 45 cents for each $1 above $180,000 for income equal to
$180,001 and above1.
Answer to Part d:
Certain exemptions are provided to a taxpayer, in which there has been minimisation,
disregard or deferral of capital gains or losses. In accordance with the provision of “Section
118 (10-1) of ITAA 1997”, assets like collectibles purchased for or below $500 are exempted
from CGT.
Answer to Part e:
“CGT event B1 Section 104 (15) of ITAA 1997” is related to the enjoyment and use
before passing the title. This event occurs when an individual enters into a contract with an
1 Ragnar, Arnason, and Hannes H. Gissurarson. Individual transferable quotas in theory and
practice. Vol. 4. Almennabókafélagið, 2017.