Australian Income Tax Guidance Notes

Table of Contents Australian Income Tax Guidance Notes 4 Topic 1 Introduction to income tax 5 Topic 2 Assessable Income 5 Topic 3 Exempt Income 5 Topic 4 Capital Gains 5 Topic 5 Annuities and Foreign Pensions 5 Topic 6 Termination payments 5 Topic 7 Small Business Entities 5 Topic 8 Trading stock 5 08.1 Valuation of trading stock (S9-180) 5 08.1.1 Methods used to work out the cost of trading stock (S9-200) 5 08.1.1.1 Trading stock on hand taken into account 5 08.1.1.2 Disposal not in the ordinary course of business (S9-290) 6 Topic 9 General Deductions 6 09.1 Deductions for business-related expenditure 6 09.1.1 Main points at this topic 6 09.1.2 Five years Write-off for BLACKHOLE Expenditure (S16-156) 7 09.2 Deductions for employment- related expenditure 8 09.2.1 Employees’ Expenses (S16-160) 8 09.2.1.1 Deductible employee expenses (S16-160) 8 09.2.1.2 Non Deductible employee expenses (S16-175) 9 09.3 Deductions for rental property expenditure 9 09.3.1 Rental Deductions (S16-160) 9 09.4 Deductions for Travel Expenses (16-220) 9 09.5 Deductions for Motor Vehicle Expenses (S16-310) 10 09.5.1 4 Methods to calculating Car Expenses (S16-320) 11 09.5.1.1 Cents per Km Method 11 09.5.1.2 12% of Original Value Method 12 09.5.1.3 Log Book Method 12 09.5.1.4 One-third of Actual Expenses Method 13 09.6 Entertainment Expenses-Limited Deductions (S16-390) 14 09.7 Self-education Expenses (S16-450) 14 09.8 Home Office Expenses (S16-480) 15 09.8.1 Home as “place of business” 15 09.8.2 Home as a work-place of “convenience” 16 Topic 10 Specific Deductions 16 Topic 11 Decline in value and capital allowance 16 11.1 Decline in value (Depreciation) (S17-010) 16 11.2 Main points in this topics 16 11.3 Two methods for calculating