Question

Indicate any amounts from these transactions that is assessable income for the 2017/18 tax year.

(a) Frida is a resident taxpayer employed by Sharpe Office Supplies. She received a gross salary of $60,000. This was paid into a bank account held by her husband Ray.

(b) Frida did not take any annual leave during the 2017/18 tax year. She had accrued 5 weeks’ annual leave as at 30 June 2018 which has a value of $6,000.

(c) Frida won $3,500 from her share of a Powerball syndicate with her work colleagues.

(d) In April 2018, Frida received $1,500 cash as a prize for employee of the month.

e) In May 2018, Frida also received a holiday to Fraser Island valued at $4,000 as a reward for attaining the highest sales figures at work.   

(f) In July 2017, Frida received a wedding gift from her work colleagues worth $750 to celebrate her marriage to Ray.

(g) In January 2018 Sharpe Office Supplies reimbursed Frida $3,000 of self-education costs upon the successful of her work-related logistics course.

(h) Samantha Storey owns an apartment in Adelaide held as an investment which she leases to tenants and derives rental income. During the 2017/18 tax year, Samantha received rent totalling $19,000 from tenants who leased the property from September 2017 until May 2018.

(i) On 18 January 2018 Samantha received $700. This was the tenant’s reimbursement towards cleaning the carpets and walls following damage from a New Year’s Eve Party.

(j) On 10 December 2017, the tenants started a fire in the kitchen by accident. While the damage was contained to one part of the kitchen, Samantha received a cheque from her insurance claim, which covered:

- $1,000 for a new replacement stove.

- $3,000 for deductible repairs to the bench top and walls.

Answer 1

(a) .frida is a resident taxpayer and she received salary of $60000 which will be a taxable income and deposit of such amount into her husband ray's account will not alter the situation, it still be taxable in the hands of frida and not ray.

(b) . Frida had 5 week accrued leave as at 30 June 18 valuing $6000, but it will be taxable as and when it will be encashed and mere accrual will not make it taxable.

(C) .Frida won $3500 from her share of Powerball syndicate with her work colleague will amount to tax liability in her hand .

(d) .In april 2018 frida received $1500 as cash prize for best employee is a taxable income as it is received under the relationship of employer and employee

(E) .Value of holiday received by Friday to Fraser islands amounting to $4000 as a reward for achieving sales target is received under her employment contract will be taxable under her hand.

(f) . Gift of $750 would come under annual exclusion limit and thus will not be taxable in her hand.

* More than. 4 options answered due to lack of time leaving rest.