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Anna McCartney is a financial analyst who works for Waratah Capital Ltd, a medium-sized investment firm in the suburbs. She commenced her employment on 1

Anna McCartney is a financial analyst who works for Waratah Capital Ltd, a medium-sized investment firm in the suburbs. She commenced her employment on 1 August 2017.

In order to attract her to the job, she was offered a sign-on bonus of $5,000. The amount was payable after a three-month probation period.

As part of her employment arrangement for the year ending 30.06.2018, Anna received a base salary of $100,000. However, she is also entitled to a bonus based on market conditions. For the year ending 30.06.2018 she received a bonus of $20,000 paid on 1 January 2018 and a second bonus of $15,000 paid into her bank account on 12 July 2018.

Anna also has $13,500 paid by her employer into her personal superannuation account during the year. She also makes an additional contribution by way of salary sacrifice of $5,000.

As part of an incentive, and to recognise her performance, Anna attended an international finance conference in London in May 2018. The cost of the trip and conference fees was $8,000. Anna also received a travel allowance of $2,000 to help defray incidental costs.

During the year, she redeemed some of her Qantas frequent flyer points accrued in relation to work-related travel paid for by the firm, to purchase a return air ticket to attend her sister's wedding in Bali.

As Anna uses her own car for work, she is given an allowance of 80 cents per kilometre for work-related travel. For the year ending 30.06.2018 she received an allowance of $2,250.

In mid-June 2018, she received a compensation of $130,000 from her previous employer, for injuries she had sustained in a workplace accident in December 2016. The lump sum was divided into $40,000 loss of earnings, $60,000 loss of future earning capacity and $30,000 for pain and suffering. She seeks your advice as to whether it would be better to accept a lesser sum of $75,000 without any agreed basis as to how the funds were allocated between current and future earnings and pain and suffering.

What are the assessable amounts from the above situations? What are the relevant laws and cases related to the each case? Please explain with a reference to relevant sections in the taxation law and precedent cases. Thank you.

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