a)

Mrs A, a single mum with two children, would like you to assist her to prepare her tax return for the 30 June 2021 tax year.

She has presented you with the following list of items.

Payment summary from Company B - 97125

Payment Summary for casual work from Company C - 58477

Payment for attending a casual work conference - 5026

Reimbursement for expenses at the casual work conference - 2000

State lottery winnings - 1000

Net capital gain on shares sold during the year - 5554

Dividends received - 8924

Compensation for loss of wages due to an injury at her casual job 1000

Interest from a bank term deposit - 1000

Money from selling eggs that her chickens laid to her friends - 500

General work deductions - 10000

Deductions that are not allowed for tax purposes - 5000

She had private insurance from 1 January 2021 and a HELP debt of $20,000.

How much is her taxable income? (enter the whole number without sign and symbol)

b

Use the 2021 tax rates from https://atotaxrates.info/individual-tax-rates-resident/ato-tax-rates-2021/

Mrs A, a single mum with two children, earned a taxable income of $190,000 for the 30 June 2021 tax year.

She had private insurance from 1 January 2021 and a HELP debt of $20,000. Calculate her tax payable for the year.

Underline your answer and show full workings in the space provided.

c

If Mrs A worked at a jewellery store and her employer gave her a sales bonus of a diamond ring valued at $10,000 how would you treat this for taxation purposes? Briefly explain making reference to any relevant case law.