Surprise Flashcard (Thu, 2025 S1)

Front

Amna is a foreign resident. She is a full-time postgraduate business student and part-time tax tutor. For the current tax year, she received the following amounts: • $20,000 rental income from overseas investment properties • $50,000 from part-time private tutoring job • $5,000 university scholarship for her excellent grades last year  What is Amna’s assessable income?

Back

$50,000

Answer explanation

Since she is a foreign resident, she is liable to pay tax only on Australian-sourced income. She would not be liable to pay Australian tax on the $20,000 rental income from overseas properties.

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Topic 2 Residency & Income Source

Front

Calculate income tax payable by Amna for the current tax year.

Back

$15,000, $15000, 15,000, 15000

Answer explanation

Amna would not be entitled to a tax-free threshold. She would pay 30¢ for each $1 of Australian source income, i.e., $15,000.

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Topic 2 Residency & Income Source

Front

A person owns a family home in Australia but lives in rented accommodation while working overseas and away from her family for most of the year. According to ordinary concepts test, is this person an Australian or a foreign resident? Read Harding on p. 39.

Back

Australian resident

Answer explanation

If an individual works overseas but returns to Australia to maintain an established family and social life, they will usually be considered an Australian resident. This is the case even if the individual spends more time overseas (TR 2023/1). 

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Topic 2 Residency & Income Source