• Abhishek is employed during the financial year ending 30^th June 2020 as a lecturer at the Universe College in Sydney with a total salary of $100,00 for that financial year plus his employer pays to Unisuper the compulsory superannuation contribution of $9,500. The Universe College also deducted PAYG from his $100,000 pay amounting to $30,000 which they remitted on his account to the ATO.
• Abhishek had allowable deductions in relation to his employment income of $2,000.

Earlier in his life, on 1^st January 2000, Abhishek had bought a vacant block of land for $250,000 and since that date, he has paid rates and taxes totalling $50,000 on the block of land up to 30th June 2020. His incidental costs in buying and selling the land amount to $40,000.

On the 30^thJune 2020, Abhishek sold the vacant block of land for $400,000.

In May 2020, Abhishek decided to take a night off and he got lucky winning $200,000 playing against the Goodluck Casino on the roulette table.

Required:

Part a (15 marks)

What is Abhishek’s ordinary income for the year ended 30 June 2020?

Part b (15 marks)

What is Abhishek’s statutory income (that is the net Capital Gain) for the year ended 30 June 2020?

Part c (15 marks)

What is Abhishek’s total taxable income for the year ended 30 June 2020?

You must give reasons for your answer. Your discussion must include an analysis of the pertinent sections of the relevant legislation, rulings, and the relevant case law.

Where relevant, you must show your calculations. 

You must apply the law to the facts and provide YOUR OWN analysis of the issues and write a comprehensive answer to the question