Australian Tax Consequences Assignment
Question 1 (500 words)
On 1 July 2019, Jarrod was transferred to the Singapore office of his company, WIN Ltd, for five years. His wife Rosie accompanied him to Singapore. In Singapore they lived in a house owned by the company and leased their Sydney residence. While residing in Singapore Rosie borrowed $200 000 from the ANZ Bank on 1 December 2019, to fund the purchase of 50 000 shares in WIN Ltd. During the 2019/2020 tax year Rosie received $58 000 as her share of net rental income from the lease of their Australian home, and $3 500 in fully franked dividends from WIN Ltd. She incurred $5 300 to refurbish the bathroom, $2 500 to install the boundary fence between her property and her neighbor’s and $1 400 agent management fees in deriving the rental income. Her interest payments on the ANZ Bank loan amounted to $11 300. On 6 June 2020 Rosie caught a Qantas flight back to Sydney to visit her ailing Mum for 2 months. While in Sydney, she struck luck and won her Powerball ticket to the tune of $2 million. She has since returned to Singapore to celebrate and enjoy her new found fortune with her husband.
Required: Advise Rosie the Australian tax consequences of these transactions for the 2019/2020 tax year. Refer to the relevant legislation and cases. (Hints: you also need to do some research on the tax consequence of dividends paid to a resident and non-resident)