1. Barry's Mowing is a lawn mowing business owned by Barry who carries on his business as a sole proprietor. The books of account for 2020-21 income year reveal that Barry has taxable income of $150,000.

Assuming Harry has no other income outside of the business and is not eligible for any tax offsets, Harry's tax payable is?

Group of answer choices

$43,567

$40,567

$55,500

$29,467

2. Bob is a sole trader electrician and is doing the electrical work for a new home. He prepares a tax invoice: labour $300 and materials of $300. He includes an additional $60 GST, the bill totalling $660.

Can the electrician claim input tax credits in relation to all of the job i.e. materials and labour?

Group of answer choices

No, he can only claim input tax credits in relation to the materials purchased.

Yes, he can claim input tax credits for the labour and materials purchased.

He is not eligible to claim input tax credits as the supply is input taxed.

He is able to claim input tax credits for the labour component of the job only.

3. A farmer with turnover greater than $75,000 is registered for GST and grows potatoes and sells them at the produce markets. What are the GST consequences for the farmer?

1. The potatoes are GST-free as basic food so the farmer does not include GST in their price.
2. The farmer can claim GST credits for the GST included in the price of purchases relating to potato growing, for example, fertiliser, fuel and freight.
3. The farmer does not have to register for GST as the turnover of the business is less than the required threshold.
4. The farmer is making taxable supplies so the farmer must include GST in their price.

Group of answer choices

1,2

1,2,3

1,3

2,3,4