Recent case law has caused many commentators to suggest that there is now a predisposition to regard business receipts as being on income account. A close analysis, however, should lead to the unmistakable conclusion that all receipts are still regarded as income unless shown to fall within some other category (eg capital, exempt income, private or domestic receipts etc) and recent case law has not departed from previously existing principles.

Very few exemptions have been provided within Part IIIA of the Australian Tax Assessment Act, but the most significant one must be the sole or principal residence examption provided in Section 160ZZQ. Substantial amendments to Section 160ZZQ were announced in the 1989 August Budget relating to temporary absence, erection of dwellings and deceased estates resulting in increased importance being placed on this exameption for tax planning purposes.

The rights of the Commissioner of Taxation to investigate a taxpayer's affairs under the Income Tax Assessment Act are found in ss 263 and 264. On first reading, ss 263 and 264 are apparently without limitation. However, 1988 and 1989 have witnessed extensive judicial consideration of these provisions. These cases point out that the taxpayer still has some rights of protection.