QUESTION 1

a) What topic does Taxation Ruling TR 2019/1 cover? 1 mark

b) Which Division of the Income Tax Assessment Act 1997 outlines the

legislation regarding deductibility of gifts or contributions? 1 mark

c) What is the top tax rate applicable to a resident taxpayer in the current tax

year? 1 mark

d) Is a car or motorcycle exempt from capital gains tax? 1 mark

e) What does the CGT event C1 s104-20 tax? 1 mark

f) What is the current tax-free threshold for a resident individual? 1 mark

g) Explain the significance of the High Court case, Hayes v FCT (1956) 96 CLR 47

with reference to assessable income? 4 marks

h) Explain in your own words the difference between Ordinary income and

Statutory income? 5 marks

i) Explain the difference between Medicare levy and Medicare levy surcharge?

5 marks

Total 20 marks

QUESTION 2

Section 6(1) of the 1936 Act defines Australian resident as it relates to individuals as

follows: ‘”resident” or “resident of Australia” means –

(a) a person … who resides in Australia and includes a person –

i. whose domicile is in Australia, unless the Commissioner is satisfied that his

permanent place of abode is outside Australia;

ii. who has actually been in Australia, continuously or intermittently, during

more than one-half of the year of income, unless the Commissioner is

satisfied that his usual place of abode is outside Australia and that he does

not intend to take up residence in Australia; or

iii. who is [a member, spouse or child under 18 of a member of certain

Commonwealth public service superannuation funds]’ (underlining added).

Attachments:

2019-T2-LAWS2….pdf