LAWS 20060: Taxpayer become Liable for a Medicare Levy Surcharge - Benjamin Case Study - Law Assignment Help

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Assignment Task :

PART A: Short answer questions 

Please use complete sentences in drafting your answer. Where possible, answers to these questions should be supported by reference to the relevant legislation, case law, and ATO guidance materials
1. What is the current tax-free threshold for a resident individual? 
2. In determining a taxpayer’s income, is there a c an allowance for work related expenses as against a reimbursement of
a work-related expense? Briefly explain your answer with reference to legislation.
3. Can a taxpayer ever be carrying on a business of gambling, or will gambling always be considered a hobby? Explain your answer with support from any relevant case law and ATO rulings.
4. Under what circumstances could a taxpayer become liable for a Medicare Levy Surcharge? 
5. In claiming home office expenses, taxpayers who run a business from their home will be able to claim more deductions for their home office than a taxpayer who
simply works at home as a matter of convenience. Explain, with reference to applicable case law, and provide an example of the differences.

 

PART B: Case studies 10 marks total. Please use complete sentences in drafting your answer. Where possible, answers to these questions should be supported by reference to the relevant legislation, case law, and ATO guidance materials

1. Benjamin was born in Brisbane, Australia, and had lived here until he turned 25. After finishing university, Benjamin moved to Ireland, which is where he met his wife,
Annaliese. Benjamin and Annaliese bought a house in Dublin, Ireland, and had two sons. When the boys reached school age, Benjamin and Annaliese decided to move
back to Australia, to be closer to Benjamin’s family. They arrived in Australia in May 2000 and purchased a house in Noosa. In January 2019, Benjamin and Annaliese
decided to return to Dublin, as their children had long moved out of home. They sold their house, all their personal possessions and closed their bank accounts. They left
Australia on 1 February 2019 and settled back into life in Dublin.
Required: Advise Benjamin whether he would be considered a resident for whole or part of the 2019 income tax year. 
 

2. Rebekah was born in America and is 21 years old. She came to Australia from America on a working holiday on 1 September 2018 for a “gap year” after finishing high school. Rebekah does not have any relatives living in Australia. Whilst in Australia, Rebekah stayed in several different types of accommodation at several different locations across Brisbane and Melbourne (mostly in Airbnb accommodation). In Brisbane, she worked at a day-care centre in the CBD, and in Melbourne, she worked at a kindergarten in the outer suburbs. Her salary from both jobs was paid into an Australian bank account, which she opened when she first arrived in Australia. She made friends whilst in both cities and spent her free time with them. Rebekah left Australia to return to the USA on 23 June 2019.
Required: Advise Rebekah whether she would be considered a resident for whole or part of the 2019 income tax year.

 

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