Amber is a 23-year-old Italian girl who decides to travel around Australia. On 20th August 2021, she arrived in Melbourne on a 12-month working holiday visa. Before coming to Melbourne, Ash lived with her family in Italy. Amber worked as a full-time primary school teacher in Italy. As she was living with her parents, she was not required to pay for accommodation. However, Amber contributed to her food and utility bills. To fulfil her travel dreams, Ash was primarily eager to save money for her upcoming travel plans and did not buy any significant assets while living in Italy. She plans to return to Italy after completing her travel dreams and starting a new career. However, she did not have anything concrete in her mind. During the first week in Melbourne, Ash lived at a family friend's house. Then she moved to the mountain areas to work for ski season. This allowed her to move around the places in Victoria. She moved to Queensland and worked in the fruit-picking industry for the whole Spring season. During her stay in Victoria and Queensland, she lived in the local backpacker's motels. Her jobs helped her save enough money to travel to Western Australia and the Northern Territory. She was flexible in accepting any casual role to support her finance as she faced any financial need. Therefore, she worked in several caf shops and warehouses. Her friends helped her to get those jobs and shared accommodations. She finished her exploration after staying in Perth and Tasmania for three months. On the 10th of March, Amber decided to return to Italy and stay there for a while before her next travel exploration.

Requirement 2: (Word limit 750)

Based on your conclusion on Amber's residency, discuss the source and derivation of income and allowable expense principles and critically analyse each transaction to calculate her taxable income for the year. For this response, you are not required to consider the consequences of Double Tax Agreements between Australia and Italy. Amber has given you the following details for the year-ended 30 June 2022. She has kept all the receipts and other evidential documents.

1. As a primary school teacher, the salary earned from Italy before 21 August 2021 is equivalent to AUD$2,500.

2. Salary received from fruit picking AUD$8,000.

3. Salary earned from multiple caf shops AUD$$4000

4. Interest on her Australian bank account of $70.

5. Tips received from customers $220

6. Lottery won $100 (local fundraising to protect wild animals)

7. Money earned from gambling is $5750

8. She transferred $2000 to her family living in Italy

9. Interest received from her Italian bank account was equivalent to AUD$300, from which a $40 withholding tax had been deducted by the Italian bank before crediting her account

. 10. Italy sold all her excess belongings in the marketplace for $300 before leaving Australia.

11. Total cost for Accommodation $3000

12. A new I-phone purchased for $1200

13. Food $2000

14.Sunscreen for outdoor jobs is $120 15. Boots required for the jobs are $200

16. Travel cost $4000

17. Medical expenses $140

18. The cost of buying and cleaning any compulsory uniforms or protective clothing that she needed for her job was $135

19. Tax Agent fees paid $90