Reference no: EM131586026

Word count: 2000 words

1) Jenny is an accountant who works in Hong Kong. She is single and lives in Hong Kong with her parents. Until April 2016, her work does not involve travel. At that time, she accepts an offer from her employer to travel temporarily to Australia to provide business advice to large numbers of former Hong Kong residents setting up businesses in Melbourne, Sydney and Brisbane. Jenny enters Australia on 25 April 2016. She intends to spend three months travelling between the three cities, staying in various motels. Her employer asks her towards the end of her three months to take up a position in Sydney for a further nine months. In early July, she leases a serviced executive apartment for nine months near her workplace in Sydney. The apartment is her home base during her stay here. She freights more clothing and some personal effects to Australia. Her parents visit her on two occasions. Although based in Sydney, her commitments require some limited travel. On average, Jenny travels at least once a week to meet clients outside Sydney. Is Jenny a resident of Australia for tax purposes?

2) A well-known television personality was paid a lump sum of $400,000 to encourage her to join a new television network. She accepted the offer and received an annual salary of $100,000 in addition to the lump sum payment.

Discuss whether both the $400,000 and the $100,000 receipts are assessable income.

Note: You will need to refer to case law and legislation to answer this question adequately.