The Australian Taxation Office is the Australian Government Agency that is focused on working as the revenue collection body for the country and is the primary administrator of the taxation system of Australia. ATO, in addition to administering the taxation system, also handles associated matters on taxation and sets the bar when it comes to interpreting taxation rules and responsibilities of everybody who legally will come under taxation rules within the country. ATO responsibilities and scope are defined within the Federal Treasury. ATO collects federal taxes under the taxation system, income taxes and GST. Income tax in Australia forms a significant part of the Australian taxation system and is seen to be drawn from the three sources of personal earnings of an individual or business and associated gain. Personal income is further classified and understood as salary, wages such as through invoices, capital gains and others. Progressive taxation rates are applied and these could be variable based on the individual income made. In addition, there are flat rate taxes for businesses, gains made within the fiscal year and Medicare taxes. The fiscal year runs from July the first in a current year to thirtieth of June in the following year. Given this general context of the Australian taxation system, this work discusses two case scenarios in the Australian income tax levy.