Taxation Law

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

TAXATION LAW1
Table of Contents
Answer to question 3:.................................................................................................................2
Answer to question 4:.................................................................................................................6
Answer to question 5:.................................................................................................................9
References:...............................................................................................................................12

TAXATION LAW2
Answer to question 3:
HECS-HELP 850:
As stated under the “s26-20, ITAA 1997” a taxpayer is not permissible to claim
certain types of self-education payments. This includes the contribution that is made towards
the HECS-HELP loan repayments1. The trainee accountant here incurs HECS-HELP payment
for $850. With respect to the guidelines given under “s26-20, ITAA 1997” no deduction is
allowable for that expenses.
Travel – work to university $110:
Self-education expenses that are happened by the taxpayer are usually held as
deductible where it is occurred in preserving or augmenting the skills of the taxpayer in the
current occupation in which they are presently employed. This mainly includes the expenses
that are occurred in improving the future income producing chances. Accordingly, travel
costs incurred by the taxpayer from work to education institution are treated as allowable
deduction2.
Likewise, the trainee accountant here occurs self-education travel expenses from work
place to the university. These are allowable for deduction under “s8-1, ITAA 1997”.
Books $200:
1 Section 26-20, Income Tax Assessment Act 1997 (Cth).
2 Section 8-1, Income Tax Assessment Act 1997 (Cth).

TAXATION LAW3
Denoting “taxation ruling of TR 98/9” cost associated to the study-related materials
are acceptable as deductions. For example, cost incurred for textbooks, calculators,
stationaries are acceptable as deductions under “sec 8-1, ITAA 1997”3. The decision of the
court was noted in “FCT v Studert (1982) ATC 4463” where it allowed the taxpayer to claim
allowable deduction for the expenses occurred for the course fees, accommodation and travel
associated to the self-education.
Citing “Taxation Ruling of TR 98/9” the trainee accountant will be allowed to claim
deduction for the outlays incurred for books under “sec 8-1, ITAA 1997”. Mentioning the
judgement made in “FCT v Studert (1982) ATC 4463” the expenditures were incurred
mainly by the taxpayer in maintaining or increasing his knowledge and ability in the current
profession.
Childcare during her evening classes $80:
As explained in the second negative limb of “s8-1(2)(b), ITAA 1997” an expenses or
loss which holds the character of personal in type might not be allowed for deduction if the
expenditures fails to fulfil the positive limbs4. The court in “Lodge v FCT (1972)” disallowed
the taxpayer from claiming the childcare payments incurred for having her child minded
when she attends her work. The judgement ruled that these costs were not relevant in the
attainment an assessable earnings.
The childcare expenses incurred during her evening classes holds the character of
private or domestic in type and will not be allowed for deduction under the second negative
3 Taxation Ruling of TR 98/9
4 Woellner, Robin H., et al. Australian taxation law. CCH Australia, 2016.