Taxation Law

TAXATION LAW
TAXATION LAW
NAME OF STUDENT
NAME OF UNIVERSITY

TAXATION LAW
1.a
Sue worked in Australia for four months as per the contract with BHP from 1st August 2018
to 30th November 2019. These are four months or around 120 days. Since she has resided in
Australia for less than 183 days (Australian Taxation Office,2018), she is classified as a
foreign resident for tax purposes. Foreign residents will only be taxed for incomes earned in
Australia. Sue, then will only be taxed on her salary of 120,000 AUD. The fringe benefit tax
of free housing will be paid by the employer.
b.
Tax calculations for Sue as a non-resident.
According to (Australian Taxation Office,2018), as a non-resident, only income earned in
Australia is taxable as per rates published
Salary in Australia 120 000,00
Salary deductions (3,200,00)
Taxable salary 116 800,00
Taxation schedule Tax
First 90 000@ 32,5c 29 250,00
Next 26 800@ 37c 9 916,00
Total Tax payable 39 166,00
Since Sue has already paid PAYG of 34,500 ,she still has a tax bill of 4,666.00
c
Tax calculations for Sue as a resident.
This will mean we have to include the income she has earned in UK. We will have to covert
the Euros to AUD at 1,59.
Income earned in UK
Income in UK
Amount in
EUR
Amount in
AUD
Interest on London bank
account 1 500,00 2 385,00
Salary earned in London 30 000,00 47 700,00
Total 31 500,00 50 085,00
Taxation table