Advice Jordan the assessability and deductibility of the below transactions. Show calculations and support your advice by reference to relevant tax legislation and tax cases.

Advice Jordan on the tax implications regarding the deductibility, FBT and GST associated with the $2,000 gym membership. Show calculations and support your advice by reference to relevant tax legislation and tax cases.

Jordan does not operate a business, but has shares in Australian listed companies and owns one rental property at Coogee. Jordan is a full-time employee of Bendigo Bank and works as an assistant manager at the Sydney office on a salary of $75,000 per year.

Question

All staff at Bendigo Bank at assistant manager level and above, are entitled to receive one year of a gym membership on top of the normal salary. The value is not to exceed $2,000 and Jordan has decided to have the annual gym membership paid for and join Fitness A gym and attend classes 3-4 times per week. Bendigo Bank paid for the gym membership on the 1 March 2019 the amount of $1,800. Bendigo Bank and Fitness A are registered for GST