Alex is resident of the UK for tax purposes. He lives in Australia and had $90,000 assessable income
from Australian sources in 2019/2020. He does not have any allowable deductions.
Required:
a- What is Alex’s taxable income?
b- Calculate Alex’s tax payable.
2
Week 2 Question (10 marks)
Anna is a fitness consultant operating as a sole trader. Anna recently completed two fitness contracts
for two of her clients.
In her first contract, Anna provided a 10-hour fitness training course to her client, Sam. Anna charged
$1,000 for her fitness training course. This included fitness training materials that cost Anna $100.
In her second contract, Anna provided fitness video tutorials for a client, Lilly. Anna charged $1,000 in
total. This included $200 to cover the cost of the video recording materials.
With reference to the relevant legislation and/or case law, discuss whether or not these receipts are
Anna’s income from personal services.
Week 3 Question (10 marks)
Alex is a musician who is also interested in collecting old golden gramophones. He is not collecting
these old golden gramophones for business purposes. On 20 February 2020, Alex sold one of these
old golden gramophones for $3,000. The gramophone cost him $500 when he acquired it on 1 June
2000. With reference to the relevant legislation, discuss Alex’s net capital gain or net capital loss for
the year ended 30 June.
Week 4 Question (10 marks)
Sam is a property investor. He purchased a small commercial building in Sydney for $2,000,000. Sam
had to take out a loan from the ANZ Bank to purchase this property and Sam is charged interest on
that loan. In order to rent the property, he met William, who is an experienced real estate agent. Sam
and William agreed that an upfront lump-sum payment of $8,100 as a management fee is to be paid
to William. With reference to the relevant legislation and case law, discuss the issue as to the
deductibility of the management fee to William and the bank interest charges.
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