Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
How would you answer questions about the assessability of the following?
(a) Mike, a lifesaver, saves a small boy from drowning. The boy’s mother is grateful and offers Anna $300 in cash. Anna refuses the money but later accepts an iPad (valued at $450). Anna is particularly interested in finding out whether this gift is assessable as income.
(b) Cartons of beer and other alcoholic beverages left by residents next to their garbage bins for garbage collectors at Christmas time.
(c) David, who is employed full-time as a motor mechanic, plays football at
weekends for which he is paid. Martyn wins the Best and Fairest Footballer trophy for the year as well as a car worth $60,000.