Reference no: EM133062456

Question 1: B Jones, "BJ" to his friends, was a bank manager who was transferred by his employer to Fiji for two years. During that time, he and his family leased a house in Fiji. The family's house in Melbourne was let, unfurnished. The family furniture was stored in a neighbour's double garage.

At the end of the two-year period, BJ had expected to move to his employer's London branch. Instead, to take advantage of promotion, he returned to Australia. BJ was unaware of the possibility of the Australian promotion until two weeks before his return to Australia.

Discuss whether, for the two-year period, BJ would be regarded as a "resident" of Australia. For simplicity, assume that he left for Fiji two years ago and returned on 30 June during the current income year.

Question 2: Lucky opens a savings account with a local credit union. The account was opened during a promotion for new customers. The credit union offered a $1,000 prize to one of its new customers. To be eligible, customers had to deposit a minimum of $1,000 and leave it in the account for a minimum of six months. Lucky was the prize winner.
Is her prize assessable?

Question 3: M Bryte is a first-class honours graduate in engineering and is offered a stipend of $15,000 pa for three years if he will conduct research into pollution of the Yarra River. The grant is made to Bryte through Monash University by the Yarra River Prawn Cooperative. Bryte enrols in a PhD course on a full-time basis and undertakes as his research project the proposal put to him by the Cooperative.
Will Bryte be assessable on the stipend?

Question 4: State to what extent, if any, the following are assessable income, giving brief reasons for your answers.
J Blo, a resident of Darwin, was paid $2,500 for expert advice given to the Australian Government while she served as a member of a Royal Commission enquiring into a Darwin cyclone.

In August I Dribble, a non-resident, arrived in Australia to play basketball for the Newcastle Falcons team. His earnings for the year ended 30 June were $30,000 for playing basketball, $20,000 for coaching and $60,000 for advertising sportswear. Ignore the impact of any double tax agreements.