1. Frank is the owner and operator of a successful strawberry farm in NSW. During the 2019/20 income year, Frank reports the following transactions (GST included where applicable):

• Sale of fresh strawberries to major retailers $375,000
• Sale of strawberry pie and ice cream at the farm caf $250,000
• Interest received on business bank account $15,000
• Salary for teaching a small business course at TAFE $45,000

Frank also incurs the following expenses (inclusive of GST where applicable)

• Seeds and seedling equipment $27,500
• Fertiliser and pesticides $15,000
• Ice cream and other ingredients for making caf foods $75,000
• Computer for private use $5,000
• Wages (1 x employee) $25,000

(a)Calculate the GST payable on supplies for the 2019/20 income year

(b)Calculate the GST tax credits for the 2019/20 income year

(c)What is Franks net GST liability for the 2019/20 income year?

2. Gina is a resident taxpayer who runs an unlicensed caf in Sydbourne (a town exactly halfway between Sydney and Melbourne).

During the last financial year, Gina (a single mum with 2 children aged 8 and 9), had the following transactions:

• Sales $280,000
• Purchase of Trading Stock $90,000
• Stock destroyed when a child set off a fire extinguisher inside the shop: $5,000
• Stock donated to Ginas local pub for a raffle night $2,000
• Stock donated to the RSPCA (DGR charity) $5,000
• Stock at Cost (1 July): $80,000. (30 June): $70,000

(Note, Gina has opted to rely on the Commissioners standard value to account for drawings on trading stock)

With reference to relevant legislation and the above data, calculate Ginas taxable income for the most recent financial year.

Be sure to research and use the most recent figures released by the ATO.