Question

With reference to relevant legislation and case law, discuss whether the following receipts are assessable or exempt income. Give reasons. a) Lucas is a full-time student and received a scholarship of $3,000 per annum from XYZ Engineering Solutions, conditional upon Lucas agreeing to accept employment with XYZ Engineering Solutions for at least three years after graduation. b) Remuneration of $600 earned for part-time services as a member of the Australian Army Reserve.

taxation theory, practice and law (subject)

Answer 1

Sam received a scholarship of $3000 per year for educational purpose. Under the section 10(16) the scholarship for education is exempted from income tax except money spend to living purpose.

At the same time ,Sam received remuneration of $600 for part time service. Here exist the employee & employer relation.Therefore the income from part time work is taxable with standard deduction & other deductions.charging section is section 15.

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