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Question: sunil works in a restaurant at melbourne cbd in the...

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Sunil works in a restaurant at Melbourne CBD. In the wake of recession

caused by COVID-19 crisis, his employer has to cut expenditure to keep the

business running. Sunil is also impacted as his work is reduced from 5-

days a week to 2-days a week. Since his employer qualifies for payments

under the JobKeeper wage subsidy scheme of the government, Sunil

BTC 3150 Taxation Law: Assignment - Semester 1 2020 4

receives $4,500 on account of wage loss due to COVID-19 crisis during

March-May 2020. Also, on 15 March 2010, Sunil received an amount of

$50,000 from an insurance company for the loss of part of his outhouse

caused by the bushfire. Citing relevant legislation and case law, advise Sunil

whether both receipts are assessable as ordinary income (assume that tax

legislation remains the same as before the COVID-19 crisis)

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