Alex is an employee at Big Country Producer Pty Ltd. He has negotiated the following remuneration package:

Cash salary of $200,000.

On July 1, 2018 Alex was given a loan of $15,000 which he used to pay for an overseas holiday for her family. The loan is expected to be repaid over 3 years with an instalment of $5,000 due on June 30, 2019, 2020, and 2021. There is no interest charged on the loan.

Payment of his health club membership ($3,600 per year).

Big Country Produce also provided Alex with the latest mobile phone, which cost $2,000 (including GST). 80% of his mobile phone use is work related.

At the end of the year Big Produce hosted a dinner at a local Italian restaurant for 10 employees. The total cost of the dinner was $2,500 including GST.

The business does not elect to use the 50/50 or 12-week register methods.

REQUIRED:

(a) Advise Big Country Produce of the FBT consequences arising out of the above information, including calculation of the taxable value for each item listed. (11 Marks)

(b) Calculate the FBT liability for the year ending 31 March 2019. Assume that Big Country Produce would be entitled to input tax credits in relation to any GST-inclusive acquisitions. (4 Marks)