LAWS20060 TAXATION LAW OF AUSTRALIA INDIVIDUAL ASSIGNMENT TERM 1

QUESTION 2

Briefly explain the extent, if any, to which each of the following payments made by an Australian resident taxpayer during the current tax year would be an allowable deduction:
(a) Brett incurred interest expense on a loan he took out to pay employee wages. The loan was secured against his personal home. (2 marks)
(b) Julie incurred $500 in mobile phone charges for the year. She determined that her work related calls represented 60% of her total calls.(2 marks)
(c) Sally paid $1,200 during the tax year to a babysitter to look after her children that she required in order to go work. (2 marks)
(d) One of Jerry’s long term employees stole $20,000 worth of goods from the business during the tax year. (2 marks)
(e) Expenditure incurred in contesting a local government election of $5,000 with $2,000 of that, spent on a big election party. (2 marks)

Total 10 marks