Reference no: EM132625577

Question - Read the given scenario and write response considering all relevant fundamental principles of income.

Steve is a resident for Taxation purposes in Australia. He works for Yarra Trams for the last 10 years. As the tax time is approaching, Steve has collected all the incomes he has earned throughout the financial year:

1. His annual salary from Yarra Tram is $60,000.

2. Exempt lumpsum income earned from a permanent injury occurred at work $10,000

3. Steve is keen to build his own investment portfolios. Therefore, he has purchased shares from different companies. During this year he has earned $2,000 from dividends and $857 from franking credits.

4. Income from a poker machine $500 (gambling)

5. Steve is registered with Airtasker (Online job platform) and performs weekend ad hoc tasks. During this financial year, he has accepted 7 jobs only and received net income of $1200 (gross income was $1411)

6. He has borrowed $8000 from a friend for his treatment. His colleagues contributed an additional $2000 for his treatment.

7. Steve has a small holiday cottage in Bali, Indonesia. No one in Australia knows about this overseas property. He has earned AUD $5000 and paid AUD $875 tax in Bali.

8. Interest received from ANZ bank $60

9. He won the Royal children lottery amounting $100

Required - Analyse each situation carefully and explain whether (individually) they satisfy and meet the fundamental principles of assessable income.