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ACCG8124 Taxation Law
Study: Information and Instructions
Weighting: 25%
Format of Submission: Microsoft Word document, 12-point Arial
Method of Submission: Online, uploaded to iLearn via Turnitin and One (1)
submission
Late Assessment Submission Penalty (written assessments): Unless a
Special Consideration request has been submitted and approved, a 5% penalty
(of the total possible mark) will be applied each day a written assessment is not
submitted, up until the 7th day (including weekends). After the 7th day, a grade
of ‘0’ will be awarded even if the assessment is submitted. Submission time for
all written assessments is set at 11.55pm. For any late submissions of time-
sensitive tasks, such as scheduled tests/exams, performance
assessments/presentations, and/or scheduled practical
assessments/labs, students need to submit an application for Special
Consideration.
Task Overview:
· Your written response to this assignment must be presented in a business
report format – (It must have an introduction, executive summary, a main body,
and a conclusion). Bullet points are not acceptable.
· Responses to this assessment task must not exceed 2,000 words.
· You must cite relevant cases, ATO rulings, and legislative references to
support your answers.
· Your response must also provide reasons that explain and support your
answers.
Background information:
Emily held the United Kingdom passport at all relevant times. From the time of
her first visit to Australia in 2016 until the end of the 2024 income year, she held
a visa which permitted her to live and work here. Emily is currently
contemplating applying for a permanent residency.
During the time she was in Australia, Emily worked under a contract as a yoga
teacher. On 5 July 2023, she needed to travel to Fiji to teach yoga, leaving her 9
years old daughter behind in Australia. She intended to stay in Fiji for 18
months. Her employer provided temporary accommodation and meals to Emily.
Emily acquired a new car in Fiji. As she missed her family, she terminated her
contract and returned to Australia after 2 months. The total salaries she derived
in Fiji was AUD 40,000 and it was paid in Bitcoin.
After Emily returned to Australia, she briefly worked as a waitress in a top tier
restaurant. Emily received salary totalling $10,000. Additionally, she received tip
income totalling $5,000 for her high-quality service.
On 15 February 2024, Emily set up a Sydney CBD English Tuition school where
she is a co-founder and principal. She hired three English teachers to manage
and teach in the tuition school. The tuition school requires students to pay for
English lessons upfront at 20 lessons for $3,500.
The following information relates to Emily’s business for the year ended 30 June
2024:
- Total cash received from the students’ fees for lessons was $800,000.
- Salary paid to three English teachers was $200,000. A once-off bonus totalling
$30,000 was also discussed prior to 30 June 2024 but was not confirmed.
- Rental and other occupancy expenses paid up to June 2024 was $60,000.
- Paid rental expenses for July to December 2024 was $30,000 due to
landlord’s incentive plan for early payment.
- New computers (2 computers were purchased) • Purchased on 20 February
2024. • Estimated life is 5 years. • Total cost was $10,000.
REQUIRED:
1) Advise if Emily is classified as a tax resident or not for the year ended 30
June 2024. (5 marks)
2) Advise Emily on what amounts may be included in her Australian taxable
income for the 2023/24 tax year. (17 marks)
3) Calculate Emily’s taxable income for the year ending 30 June 2024. (3
marks)
