Taxation Law of Australia

Running head: TAXATION LAW OF AUSTRALIA
Taxation Law of Australia
Name of the Student
Name of the University
Author Note

Taxation Law of Australia1
Table of Contents
Answer to Question: 1................................................................................................................3
Answer (a)..............................................................................................................................3
Answer (b)..............................................................................................................................3
Answer (c)..............................................................................................................................3
Answer (d)..............................................................................................................................3
Answer (e)..............................................................................................................................3
Answer (f)..............................................................................................................................3
Answer (g)..............................................................................................................................4
Answer (h)..............................................................................................................................4
Answer (i)...............................................................................................................................5
Medicare Levy...........................................................................................................................5
Medicare Levy Surcharge..........................................................................................................5
Answer to Question: 2................................................................................................................5
Answer to Question: 3................................................................................................................7
Answer to Question: 4..............................................................................................................10
Answer (a)............................................................................................................................10
Answer (b)............................................................................................................................11
Answer (c)............................................................................................................................11
Answer (d)............................................................................................................................12
Answer to Question: 5..............................................................................................................12
Answer (a)............................................................................................................................12

Taxation Law of Australia2
Answer (b)............................................................................................................................13
Answer (c)............................................................................................................................13
Answer (d)............................................................................................................................14
Answer (e)............................................................................................................................14
References................................................................................................................................15

Taxation Law of Australia3
Answer to Question: 1
Answer (a)
The “taxation ruling of TR 2019/1” covers the commissioner view considering an
organization when it perform its business operation under “sec-23, ITRA 1986”- the
definition mentioned in respect of small business entity. It has applicable from the income
year 2015-16 and 2016-17 “sec-328-110, ITAA 1997”1.
Answer (b)
“Division 30 of the ITAA 1997” of the Income Tax Assessment Act, 1997 outlines
the legislation regarding deductibility of gifts or contributions for the taxpayers2.
Answer (c)
The tax rate of 45% is applicable to a resident taxpayer in the current tax year.
Answer (d)
The taxpayers use a car or motorcycle for their personal purpose. Therefore, it
consider as an asset for personal use and comes under “sec-108-20, ITAA 1997”. Hence, not
exempted from capital gains tax.
Answer (e)
“Subsection 104-20 (1), ITAA 1997” includes the CGT event C1, that takes place
when an individual has somehow lost or destroyed the CGT Asset. It commences on the time
when that individual reimbursed for the destruction or that loss or if he/she do not receive any
reimbursement or compensation for the discovered loss.
Answer (f)
The current tax-free threshold for a resident individual of Australia is $18,200.
1 Hopkins, Bruce R. The Law of Tax-Exempt Organizations. 11th ed., 2016.
2 Bankman, Joseph, et al. Federal Income Taxation. Aspen Publishers, 2018.