QUESTION 2

To prepare your answer to Question 2, you are required to undertake independent research to produce a quality answer that has the following attributes:

Clarity of answers and arguments, identifying the key principles, key legal questions, key taxation issues, and economic and other considerations that support your answers.

Quality and depth of research, using resources such as peer reviewed journal articles, books about taxation principles, Australian-focused books about taxation, Australian government reports, relevant reports from other bodies, relevant statements by government departments, and statute law. You are not required to research any case law.

Correct application of the AGLC to include pinpoint references in your answer.

This is a discussion question.

In Australia, sportspersons and farmers benefit from income smoothing tax policies such as income averaging, forced livestock sale deferrals and farm management deposits that help them to save tax. Do you think these policies are justified and appropriate?

Please answer in depth and in paragraphs.