Question
Julie is a university lecturer who has been employed by a university in Brisbane. On 1 March 2020 she accepts an offer to work at
Julie is a university lecturer who has been employed by a university in Brisbane. On 1 March 2020 she accepts an offer to work at the London School of Economics for three years. On this date she ceases to be a resident for Australian tax purposes (she is a foreign resident from 1 March 2020). Julie provides you with the following information for the year ended 30 June 2021:
Salary from employment in London totalling AUD$95,000.
Reimbursement of her airfare and other travel costs by the London School of Economics on 1 July 2020 totalling $4,000.
Receipt from an Australian publisher on 10 July 2020 for writing a chapter in a new textbook, totalling $4,600. Julie had completed this work in January and February 2020, however, she was not paid by the publisher until her chapter had been edited.
Interest on her Australian term deposit. At 30 June 2021 $180 interest will have accrued, and the term deposit matures on 20 July 2021 when $200 will be credited to Julies Australian bank account.
Dividends from an Australian company listed on the Australian Stock Exchange totalling $1,200.
$1,120 from the sale of excess clothing and other personal items on eBay prior to Julie leaving Australia.
Required:
Discuss what amount Julie should include in her assessable income in Australia during the year ended 30 June 2020? You should state whether the amounts are (i) ordinary income, (ii) discuss the source of income and (iii) discuss derivation. You must refer to relevant legislation, case law and/or rulings in answering this question. Ignore withholding tax.
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