Taxation Theory Practice and Law in Australia

Taxation Theory Practice
and Law in Australia

Contents
Question 6........................................................................................................................................3
Question 7........................................................................................................................................3
Question 8........................................................................................................................................4
Question 9........................................................................................................................................5
Question 10......................................................................................................................................6
REFERENCES................................................................................................................................7

Question 6
FBT is different from income tax and has been compensated on those advantages offered to
workers or employees associate which are usually their families due to the job opportunities of
the contractor. In the respective case of Mason in which benefits to a matching super fund are
compensated, than his earnings foundation may well be decreased except as otherwise stated
mostly in salary sacrifice configuration. Mason earnings base is the percentage on which
Melbourne Collision Repair Centre will determine super contributions. Salaries lost super
investments are paid in the super fund according to tax laws expressly addressing this issue. This
is important that Mason fully recognize and negotiate with his manager on all the aspects of any
wage reduction agreement. If company employer pays for a fee as portion of Mason wage
package, for which he would normally receive a tax deduction, then they will not have to charge
FBT on the fee (FBT Consequences for remuneration package, 2020). The 'otherwise deductible
law' is recognized and appears in Mason federal income tax report he would not be entitled to
assert an income tax credit for this cost. As the employer measures the taxable amount of the
payment provided to Mason for FBT objective, the 'deductible component' of the cost.
Question 7
A) Net capital gain or net capital loss for the year to Alex
Profit on sale
Total Sales value 1,400,000.00
Less: cost of land (110,000.00)
Cost of Construction (100,000.00)
Profit on sale is 1,190,000.00
Capital gain on discounted method 595,000.00
As the discount price is 50 % according to Australian government,
The asset must be purchased prior to actually 12 months or above.
Capital gain on Indexation method 712,134.15