Question
Rod McLean aged 37 lives in Manly and works as a computer-systems engineer. He is employed at the Macquarie Park office of Softmicro Ltd, a
Rod McLean aged 37 lives in Manly and works as a computer-systems engineer. He is employed at the Macquarie Park office of Softmicro Ltd, a US company that specialises in the development of information systems. In March 2017 Softmicro won a tender contract to install a new computer system for RST Ltd, located in Hong Kong.
As a result, on 1 April 2017, Rod was posted to Hong Kong for one month to arrange installation of the system. Due to technical difficulties in the installation, Rod's stay was extended by a further three months.
Initially, his salary of $8,000 per month was paid into the Manly branch of his Westpac bank account. However, from 1 May 2017 his salary was paid into an account he opened at the Kowloon branch of the HSBC Bank, in Hong Kong.
Upon completion of his work in July 2017, RST Ltd presented Rod with a return airline ticket to holiday in Paris, together with a voucher to cover his expenses whilst in Paris valued at $8,000. RST Ltd also offered Rod a three-year consulting job with the company with an annual salary of 100,000 and a car.
As an incentive to join RST Ltd, and to compensate for his leaving Softmicro and having to move permanently to Hong Kong, he was offered $40,000. This was to be paid in two instalments - $20,000 on joining the firm and $20,000 after one year of service. Rod accepted the offer on 1 September 2017.
Report advising Rod as to the assessability of the above amounts in Australia for the tax years 2018/19 and 2019/20.
Was wondering if you could offer me assistance, I don't want to submit someones work that isn't my own but I'm struggling to see how I can answer for the year 20/19/20. Any help and guidance would be greatly appreciated.
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