Australian Taxation

Deductions Q2:

Referring to relevant provisions of the ITAA 1997 or ITAA 1936, discuss whether, for the current income year, the following amounts are deductible:

$7,000 paid by a self-employed person for superannuation. How would your answer differ if the amount paid was $40,000?

$350 interest paid as the person mentioned in item 1 obtained a loan of $7,000 to pay the superannuation.

Speeding fines of $700 paid by the owner-driver of a taxi.

$25,000 paid by a newly incorporated company for an environmental impact study. The amount was incurred on 1 January of the current year in relation to a project expected to last 25 years.

A gift of shares to a registered charity which operates in Australia. The shares were acquired two years ago at a cost of $2,000 and on the date of the gift were valued at $12,000.

A new roof costing $16,000 for a house used solely for rental purposes. The house was purchased on 1 July in the current income year and the roof was replaced two months later.