Revenue Law

Luke is an Australian Citizen and a licenced conveyancer. After finishing his conveyancing
course, Luke starts working for a local conveyancing firm called ‘Macquarie Conveyancing’.
He commences his employment in July 2020, and whilst working at Macquarie
Conveyancing he receives a salary of $80,000 p.a. and is given the benefit of a brand-new
car courtesy of his employer to drive to and from work and for the purposes of attending his
appointments with his clients.
Luke owns an apartment in Sydney, which he resides in that is located close to his elderly
parents. In June 2021, Luke resigns from his job and takes up permanent employment in
New York in the United States. He sells all of his belongings and decides to rent out his
apartment for $600 per week the day he leaves Australia. On 1 July 2021, Luke leaves
Australia and arrives in the United States. He immediately takes up residency in an
apartment he rents in New York.
Before leaving Australia, Luke decides to play blackjack at The Star Casino and wins $10,000.
Luke knows that you have studied some Australian Tax law and has approached you for
some advice in relation to any possible tax implications concerning the tax years 1 July 2020
to 30 June 2021; and 1 July 2021 to 30 June 2022.
He provides you with the following additional information:
• Upon leaving Australia, Luke planned to stay in the United States for an unspecified
period of time;
• At all times he retained his Australian Citizenship;
• The rent derived from his apartment in Sydney was deposited into an Australian
Bank Account. His salary in the United States was deposited into a US Bank Account;
• For the period he was in the United States, he travelled back to Australia to visit his
parents for Easter and Christmas staying only for a ‘few weeks’ (assume no Covid-19
travel restrictions).
Luke is also concerned about any tax implications (if any), in relation to him having the
benefit of a company car and whether he needs to pay tax on his The Star Casino winnings.
In light of your studies in respect of Modules 1 to 5, you are to identify, analyse and discuss
the relevant taxation issues in respect to both the tax years; 2020-2021 and 2021-2022.
Your response should be in essay format and should make reference to relevant legislation,
case law and any Rulings issued by the Australian Taxation Office.
You will be expected to form a conclusion as to each tax issue you identify, and you are not
required to discuss or identify any Double Taxation Agreements (DTA’s) between Australia
and the United States. Students are also not expected to discuss any tax implications
concerning tax in the United States and should focus on Australian Tax law