Class Work: Week 3 ~ Ordinary Income

Instruction: Please do research and then explain the following exercises in your own opinion and understanding, also make sure to input references (if any) as well.

1. Johnson is a cricketer. He works for west union club and has received an annual salary. He also earns bonus for every match he plays. In 2015/16 income year, he earned salary of $50,000 and bonus of $20,000. He also won an award of $10,000 from a TV show as a best player. Calculate Johnsons assessable income for year 2015/16?

2. Mary works as an accountant. Her employer provides her a free accommodation on the condition that she can only live there by herself and cannot sublet it to others. The same accommodation costs around $10,000 a year. Is this assessable income of Mary assume no Fringe benefit tax has been paid by the employer?

3. Frank operates a petrol station. He enters into an agreement with Shell and agreeing to sell Shells petrol exclusively for 5 years. During these 5 years he cannot sell petrol from any other petrol suppliers. He is paid for $15,000 for signing this agreement with Shell. Is it assessable income of Frank?

4. Ben helps neighbours to clean up their houses. He does this every Saturday. In this income year, he earns $10,000. Does Ben carry on a business?

5. Which of the following is assessable income:

1. Salary and wages

2. Accommodation provided by employer that can be convertible to cash

3. Tips

4. Dividends

5. Royalties

6. Money received for giving up rights

7. Money received for winning an award

8. Refund from a shop for goods purchased and returned