Reference no: EM133800956

Question

Maricelle works as a flight crew member on Star Blue airlines on a part time basis. Star Blue fly both domestically and internationally. Maricelle is an Australian citizen and is also studying a Bachelor of Aviation at Griffith University and receives an academic scholarship to cover her tuition fees of $12,000 per year. Maricelle has already gained her commercial pilot license (CPL) and works as a casual flight instructor teaching other people how to fly with Pathfinder Aviation at Archerfield airport.

To eventually pilot planes with an air transport pilot license (pilot commercial planes with passengers), Maricelle needs to continue her training. This includes more hours flying and undertaking extra courses. Her hours of training up and coming pilots can be used towards the flying hours accumulation, however Maricelle also charters a plane each week to add to her hours of flying. Maricelle also completed her multi-crew operations training which is required when commanding a flight with a crew of pilots.

Maricelle has recorded the following expenses that she believes are related to her work and study commitments.
Money out (Expenses)

$130 black Diana Ferrari branded heels (5cm heel) - specified in the Star Blue uniform policy

$40 hydrating moisturiser for hands and face - dry skin from flying at altitude and in air conditioning.

$200 shirts with the Star Blue registered logo

$150 skirts with the Star Blue registered logo embroidered on the pocket.

$250 food expenses when travelling and staying overnight working for Star Blue

$360 Uber/Taxi fares for transport from home to the Airport to work for Star Blue

$290 suitcase (cabin size) hard shell for use when required to travel overnight with Star Blue.

$180 Student fees for Bachelor of Aviation

$420 textbooks for university course

$10,000 university fees paid for the year

$80 plain navy-coloured pants to wear when working for Pathfinder Aviation

$90 knitted navy jumper to wear when working for Pathfinder Aviation

$260 sunglasses to wear when flying

$420 Associate membership with Australian Airline Pilots Association

$500 Class 1 Medical examination as required to maintain pilot license each year.

$6,598 - Maricelle completed the Multi Crew and Multi Engine Aeroplane class rating training to improve her flying skills and expand her aircraft competency (she will be able to fly more models of planes).

$2050 - A Bose A30 Aviation Headset for use when piloting the aircraft - assume that Maricelle first used the headset on 1 October 2023

$15,072 - Plane hire fees to accumulate flying hours for air transport flying license

1. In terms of the expenses that Maricelle has paid for (listed above), determine whether Maricelle would be entitled to claim a deduction under the relevant provisions of the Income Tax Assessment Acts.

Ensure that you address your answer using ILAC format and remember that there is the general provision under s8-1 and/or specific provisions that might be relevant.

Ensure that you justify your application with the relevant law.

2. Discuss what the purpose is of the creation of Tax Rulings by the Australia Taxation Office and how they are regarded as a source of law. Why should practitioners and taxpayers alike make use of these rulings.