BLAW30002 Lecture Notes - Lecture 3: Tax Residence, Income Tax, Ordinary Income

• School: University of Melbourne
• Department: Business Law
• Course: BLAW30002
• Professor: Sunita Jogarajan

Document Summary

*do(cid:374)"t just fo(cid:272)us o(cid:374) the argu(cid:373)e(cid:374)ts that take (cid:455)ou to the (cid:272)o(cid:374)(cid:272)lusio(cid:374) that (cid:455)ou wa(cid:374)t to rea(cid:272)h consider both sides, then reach conclusion, then justify conclusion. How to work out how much income tax you must pay: s 4-10 tax payable = (taxable income * tax rate) - tax offsets. Tax/financial year = 1 july to 30 june: s 4-10(1) & s 995-1. Assessable income s 6-1: what we pay tax on. Assessable income = ordinary income (s 6-5) + statutory income (s 6-10) (not including non- assessable income (s 6-15)) Deductions = general deductions (s 8-1) + specific deductions (s 8-5) S 6-5(2): if you are an australian resident, your assessable income includes the income that you derive directly or indirectly from all sources. S 6-5(3): if you are a foreign resident, your assessable income includes your income from all. S 6-10(4): if you are an australian resident, then you are taxed from your income from all sources.