Amir purchased a stamp collection with the value of $3,000 on 31 March 1988. On the same day, he paid $200 for the lifelong insurance of this collection. This collection was sold on 20 March current year for $15,000. The company chose not to index.

Required:

Is this gain subject to any capital gain tax? If yes, how much is the capital gain? Are there any offsets/Discounts applicable for Amir? What is the reason for discount? (No law section number or cases are required to be mentioned)

(To get a full mark, students need to present and discuss the relevant laws and cases and apply them to this scenario, using the template below and in your own words. Ignore GST effect in all calculations of this question and use tables for calculation, no narrative calculations are to be marked, except the reasons for capital gain discount).