Alfred operates an outdoor gym and fitness centre as a sole trader. The business name Alfred registered is MoveFit.

Alfred had used some of his own savings to start Movefit, and had borrowed $100,000 from Qld Bank Co Ltd. The bank charged a loan establishment fee of $750 on 1 July 2019. Repayments of $1,500 were made to the bank each month, and the interest component of the payments totalled $4,000 for the year ended 30 June 2020.

Alfred owns the land on which MoveFit operates and his family home is located. Fifty percent (50%) of the property is used for private purposes. Council rates totalled $2,400 for the year ended 30 June 2020, and business insurance totalled $3,000 and insurance on his family home totalled $1,900.

Alfred paid construction costs of $75,000 for a large shed in which the gym equipment is located on 15 July 2019. After a hail storm in November 2019 the outdoor deck area where yoga classes are held was damaged. Alfred decided to replace the rubber floor mats with more shock absorbent laminate, so his clients would be less likely to injure themselves while taking classes. The laminate floor cost $12,000 and was paid on 30 November 2019.

Alfred purchased a new commercial grade treadmill for MoveFit on 15 January 2020 for $3,300.

To improve his businesss reputation Alfred agreed that he would donate $2,500 to Diabetes Australia on 1 June 2020. In acknowledgment of this support Diabetes Australia listed him as a sponsor at a health expo.

In March 2020 one of the clients complained that they had injured themselves while lifting weights. After advice from his solicitor, Alfred agreed to compensate the customer $5,000 to cover any expenses such as medical fees. Legal fees of $1,750 were incurred to negotiate this settlement on 10 April 2020.

Alfred drew a salary of $75,000 for himself from the MoveFit business bank account during the year ended 30 June 2020.

Discuss whether any amounts of expenditure incurred by Alfreds business, MoveFit, would be allowable as a deduction during the year ended 30 June 2020 under any section of the Income Tax Assessment Act 1936 or 1997. You must refer to relevant legislation, case law and/or rulings in answering this question. You can assume Alfred is operating as a Small Business Entity.