Income tax law

Students are eligible for two-and-a-halve (2.5) marks per tutorial if:
1. They answer all of the questions or tasks in a tutorial with the required detail and meeting all of
the assessment criteria set out in the topic Study Guides covered in each tutorial. No part marks
are awarded if a student fails to complete all the tutorial questions or tasks at the appropriate
standard, or fails to include the relevant calculations, explanations, reasons, relevant case law,
relevant division numbers and section numbers from the relevant legislation and the relevant
ATO rulings and documents.
2. Their answers contain sufficient material to demonstrate a professional attempt at all of the
questions or tasks, similar to what is expected in answers under assessment conditions and
meeting the assessment criteria set out in the topic Study Guides for the topics covered in each
tutorial.
3. Their answers reference the relevant legislation by division numbers and section numbers,
case law and ATO rulings and documents as set out in the topic Study Guides for the topics
covered in each tutorial.
4. Their answers clearly identify and sufficiently address and explain the legal problems posed in
all of the questions or tasks.
5. For discussion questions, their answers include reasons, explanations, references to the
relevant divisions and sections of the relevant legislation, case law and ATO rulings and
documents, and show the relevant calculations. Discussion questions require comprehensive
explanation. Short dot point answers are not appropriate.
6. For calculation questions, their answers show all working, formulas, and the bases for
calculations in words, explanations and reasons, and references to the relevant divisions and
sections of the relevant legislation, case law and ATO rulings and documents as required.
7. They have uploaded their typed up answers to the course site on Learn.UQ using the correct
Turnitin link for the relevant tutorial in the relevant weekly folder in the Learning Resources
folder before the relevant time and date as set out in Section 4 of the ECP, and as captured by
Turnitin.
8. Their answers are typed up and uploaded in Word format.
9. The cumulative maximum marks that may be awarded for Tutorials over the semester is ten
(10).
10. It is very important to understand that no part marks are available for tutorials.
Where to find the answers to Tutorials
These are discussed in the Workshops. You must watch and listen to the Workshops to check your
answers.
LAWS3101: Tutorial 1
2
Attending a Tutorial Class
You must attend the tutorial class you have signed on to. The zoom meetings links to join your tutorial
is available in the Learning Resources folder on the course site. During Tutorial Classes, we share
feedback on student answers to Tutorials and the remainder of the time is devoted to student
questions. Therefore, Tutorial Classes act as intensive zoom consultations. These Q&A’s are studentled. We rely on you to ask questions.
What should you do before you prepare your answers to Tutorial 1?
1. Study these two documents available in the O Week folder: ‘Successfully navigating
assessment in LAWS3101’ and ‘What you need to know about tax before starting
LAWS3101’.
2. Watch and listen to the Week 1 Lecture.
3. Use the Topic 1 Study Guide to study the work covered in Topic 1.
4. Consider working through the Topic 1 Case Studies to confirm your understanding of the
work covered in this topic and to practice meeting the assessment criteria that you have to
meet in Topic 1.
Tutorial 1 questions
Question 1
Source: PoTL 2020 end of chapter question 3.8 and 3.9 (adapted).
Linley is an Australian resident individual for income tax purposes. The following facts are relevant to
her 2019–2020 income year. She has taxable income of $177,000 from employment and interest on a
bank deposit. Her HELP debt balance is $25,000. She is aged 38, single, and has sufficient private
health cover for the full income year. Her employer withheld PAYG totalling $68,000 from her salary
and remitted the amount to the ATO. Her employer-issued PAYG payment summary also reflected
reportable fringe benefits totalling $10,000 that her employer paid FBT on.
You are required to:
Calculate Linley’s tax payable or refundable at the end of the 2019–2020 income year. Show all your
calculations, present all formulas and bases for your calculations in words, and provide reasons for
your answer.
Question 2
Adam is aged 48, married and an Australian resident individual for income tax purposes. His taxable
income for the 2019–2020 income year totals $48,000. His spouse has taxable income that totals
$242,000 for the 2019–2020 income year that includes a deductible personal super contribution of
$20,000. Neither of them have private health cover during the 2019–2020 income year. Adam’s HELP
debt balance is $25,000. His employer withheld PAYG totalling $5,500 from his salary and remitted
the amount to the ATO.
You are required to:
Calculate Adam’s tax payable or refundable at the end of the 2019–2020 income year. Show all your
calculations, present all formulas and bases for your calculations in words, and provide reasons for
your answer.
LAWS3101: Tutorial 1
3
Question 3
Betty and Charles are in their 50’s and married. They have sufficient private health cover. They are
Australian residents for income tax purposes. All of the facts relate to their 2019–2020 income year.
Betty is employed as a tutor at The University of Queensland. Her employer-issued PAYG payment
summary reflects the following:
 Gross salary $20,000
 Reportable fringe benefits that her employer paid FBT on $200
 PAYG withheld from salary $1,000
Betty owns shares in an ASX listed company. This company paid her fully franked dividends totalling
$3,600. The company is liable to pay tax at the rate of 30%.
Charles is a tax adviser with his own business called Charles Calculus Tax Advisory. The records of
Charles Calculus Tax Advisory reflect the following for the income year:
 Turnover for services provided to clients and bank interest received on the business bank
account, ordinary income, s 6-5, income from business and property $1,230,000
 Tax deductible expenses including rent, council rates and taxes, electricity, telephone,
internet charges $235,000
 Tax deductible expenses: Salaries paid to staff, s 8-1 $650,000
 Capital allowances, Div 328 (tax deductible depreciation) on office equipment $45,000
During the income year, Charles remitted PAYG payments of $100,000 to the ATO in prepayment of
his 2019–2020 income tax liability arising from his business.
Charles also rented out a unit that he owns in a unit complex in St Lucia to a tenant. These are the
relevant details:
 Rent received, ordinary income, s 6-5, income from property $20,000
 Tax deductible expenses for the rental property $15,000
 Tax deductible interest charged on the mortgage loan that Charles used to fund the purchase
cost of the unit $10,000
You are required to:
Calculate Betty and Charles’s taxable income for the 2019–2020 income year, and their tax payable
or refundable at the end of the 2019–2020 income year. Show all your calculations, present all
formulas and bases for your calculations in words, and provide reasons for your answer.
Note: Betty and Charles are separate taxpayers. You must provide separate calculations for each of
them, starting with taxable income. From Topic 3 onwards, you must provide significantly more
section and division numbers as part of your answers. Use the Topic 1 Study Guide to find the
specific sections you need to reference for Topic 1.