Assignment Task One

Abdullah is a 38 year old Malaysian citizen and recently retired world professional Grand Prix racing car driver.He is single with no dependents.On 1 February 2017 Abdullah accepted a position with Fox Sports Television Australia to commentate on the upcoming professional Grand Prix racing tour.The contract will involve Abdullah broadcasting on location at race events throughout the world.The contract with Sydney based Fox Sports coincides with the current professional racing season (1 April 2017 to 31 December 2017) with an option to extend for the following season if both parties agree.

The contract will require Abdullah to travel overseas with the tour for at least two weeks in every month.He will also spend one week per month at Fox TV's Sydney studio.Abdullah has decided to make Australia his base for the term of the contract.On arriving in Australia on a one-way ticket on 1 March 2017 he secured a 12 month lease on an apartment in Sydney.While in Australia he will lease his fully furnished apartment (in Kuala Lumpur, Malaysia) to friends.His mother and father will store his personal possessions (including his Grand Prix trophies) at their Kuala Lumpur home.

Abdullah is confident he can make a career as a professional sports broadcaster.If the Fox Sports contract is not renewed in January 2018 he intends to seek employment with other sports broadcasting networks either in Australia or internationally.

Required

In the form of a professional correspondence (not exceeding 1500 words) advise Abdullah whether at 30 June 2017 he will be classed as a resident of Australia for income tax purposes.Also advise Abdullah how his income will be assessed given both scenarios of him being deemed a resident and a non-resident.Calculations are not required.Ignore any consequences of the Double Tax Agreement between Australia and Malaysia.

Assignment Task Two

Ms Anna Paxton is a 48 year old individual resident of Australia (Newcastle) for taxation purposes.She was employed as a school teacher for the full 2017 financial year.Anna is single with no dependants and did not have any private hospital cover. The following information relates to the year ended 30 June 2017:

Receipts

Gross Salary as per payment summary (note 1) $88,880

Fully Franked dividends received 4,200

Unfranked dividends received 950

Net Interest Income received from New Zealand bank account (note 2) 800

Gross rent received 6,200

Gift from her grandmother 5,000

Cash prize for "NSW Teacher of the Year" award 1,500

Payments

Expenses relating to the rental property (all deductible) 8,500

Purchase (12/01/17) of a computer used %75 for business

with an effective life of 4 years 1,850

Purchase (01/01/17) of a briefcase used 100% for business

with an effective life of 4 years 280

Personal contribution to a complying superannuation fund 2,500

Personal medical expenses paid (after Medicare refunds) 4,250

Annual fee - Australian Teachers' Trade Union 1,300

Other deductible expenditure relating to Australian income 1,000

Notes

1.The payment summary also showed $31,000 PAYG deducted, a Reportable Fringe Benefit amount of $4,500 and a Reportable Employer Superannuation Contribution amount of $3,300.

2.The New Zealand government withheld $200 tax (Australian dollar - AUD equivalent) from the gross $1,000 interest earned.

3.At 30 June 2017 Anna had an accumulated HELP (HECS) debt of $7,500

Required

Calculate the taxpayer's minimum taxable income and net tax payable/refundable for the year ended 30 June 2017.Show all workings.Referencing to the Income Tax Assessment acts is not required.