What is the applicable legislation and case law?
2) Larisa Evans has the following amounts of income for the year ended 30 June 2020. She is a resident Australian employee.
– $42,000 salary and wages from sources in Australia;
– A commission of $5,000 from her employer paid on 5 July 2020
– Net interest of $450 from a UK bank account (10% withholding tax has been deducted)
– Gross interest of $1000 from an Australian bank account. Larisa did not notify the bank of her tax file number, so TFN tax of $470 was withheld by the bank at the top tax rate plus Medicare levy.
- Calculate Larisa’s assessable income for the year ending 30 June 2020.
- Calculate the tax payable including Medicare levy.
3) Joshua Matthews lives in Melbourne, and works as a research consultant for Daniel Industries Ltd, a UK company with branches in multiple countries. On 1 August 2019 Daniel Industries posted Joshua to Indonesia to perform research services for one of their branches. He was initially there for two months, however due to issues in the local branch, his stay was prolonged by a further one month.
-During this time his pay was deposited into his Westpac bank account in Melbourne, by the UK company. He was paid $6,000 per month.
Whilst in Indonesia a third-party provider who worked with Daniel Industries offered Joshua a further six months of work. This included an upfront payment of $5,000 in November 2019, and a further bonus of $10,000 at the completion of the six month contract. During this time Joshua’s income from the Indonesian company would be paid into an Indonesian bank account.
- What is the main issue?
- What is the applicable legislation and case law?
- What is the assessibility of the above income in Australia?