Roszkiewicz and Commissioner of Taxation (Taxation)

This matter concerned an appeal by Ms Roszkiewicz against a decision of the Commissioner of Taxation (ATO) regarding the appropriate financial year for the inclusion of certain income in her assessable income. The dispute centred on whether income earned in the 2016 financial year but received in the 2017 financial year should be assessed in 2016 or 2017.

The primary legal issue before the Tribunal was to determine which accounting method, the receipts method or the earnings method, was appropriate for assessing Ms Roszkiewicz's income under subsections 6-5(2) and (3) of the *Income Tax Assessment Act 1997* (ITAA 1997). This determination would dictate whether the income was assessable in the 2016 or 2017 financial year.

The Tribunal reasoned that under section 6-5 of the ITAA 1997, assessable income includes ordinary income derived by a taxpayer. Taxation Ruling TR 98/1, which provides binding advice on the Commissioner's interpretation of the legislation, states that income from employment is normally assessable on a receipt basis, even if it relates to a past or future income period. The Tribunal found that the receipts method is generally appropriate for income derived by an employee and that there were no specific circumstances in Ms Roszkiewicz's case that would justify departing from this method. Consequently, the Tribunal concluded that the ATO had correctly assessed her income for the 2016 and 2017 financial years.

The decision under review was affirmed.