Australian Taxation Authority

Question: Discuss about the assessable income of an individual. Answer: Part A Introduction Assessable income of an individual is the income of that person that is subjected to income tax by the Australian Taxation Authority (ATO) provided such income exceeds the tax-free threshold limit stipulated by the ATO[1]. There are various sources of assessable income that are considered by the ATO while arriving at the tax liability of an individual. In the given case scenario, David is a medical practitioner who has to discontinue his practice due to his illness. The income from practicing is considered to be personal service income of a person. In a similar manner, deductions are available to an individual that are set off against assessable income of an individual[2]. David has other sources of income such as income from investment, dividend and income from rent. The primary objective of this essay is to evaluate and determine that whether deductions can be claimed for compulsory costs that are required to be incurred by David during his period of illness against his assessable income[3]. Elaborate of the above mentioned points. The introduction should be 10% of the total word count allotted. Body (Do not include this heading while writing the final piece) Discuss of the following points: Assessable income of medical practitioners Deductions available and their types Analysis of the case with reference to the provisions of the law stipulated in the ITAA 1997. This portion will include the opinion of the author in light of the legislative provisions and rules stipulated by the ATO. Conclusion A brief summary of the points discussed above. It should also be 10% of the word count. Part B To David Sub: Advise on your assessable income and deductions that can be availed Ref: It can be a letter dated **/**/**** Dear David, Discuss the following: Important issues related to the case Legislative provisions applicable Advise on the matter and a detailed discussion of whether deductions can be claimed Thanking you. Yours sincerely, ABC Solicitors References INCOME TAX ASSESSMENT ACT 1997(2016) Austlii.edu.au Part 10 - Tax Planning For Doctors - Mcmasters' Accountants(2016) Mcmasters.com.au What To Include In Your Assessable Income | Australian Taxation Office(2016) Ato.gov.au [1] What To Include In Your Assessable Income | Australian Taxation Office (2016) Ato.gov.au [2] INCOME TAX ASSESSMENT ACT 1997 (2016) Austlii.edu.au [3] Part 10 - Tax Planning For Doctors - Mcmasters' Accountants (2016) Mcmasters.com.au.