*ANSWER BASED ON AUSTRALIA ONLY*

Question 2.

John sold his valuation practice and his 4-bedroom family home in Perth, Western Australia during 2021, and planned to move to the Entrance in New South Wales on the 10^th July 2021. However, due to COVID 19 border restrictions, John and his family were not able to cross the border and rented a house in Western Australia, waiting for the borders to re-open. During December 2021, John and the family were able to relocate when the borders were opened.

John had originally purchased the valuation practice on the 17^th May 2007 for $295,000. He entered into a contract on the 15^th May 2021 to sell the valuation practice for $680,000. Other expenses relating to the sale (legal fees, agents commission, advertising) amounted to $25,000. Included in the sale of the valuation practice was all the equipment necessary to continue operating the business.

Johns main residence in Western Australia was originally purchased for $440,000 on 19^th July 1997. It was subsequently sold on 17^th May 2021 for $960,000. Legal expenses and agents commission fee plus advertising totalled $34,000.

Between 2019 to 2021, John was not well, and it was difficult for him to drive to his valuation practice, so he occasionally used two rooms from his 4-bedroom family home to carry out the work for his valuation practice.

Advise John on the following tax issues:

a) Capital gain liability (if any). Include any calculations where necessary.

b) Requirements (if any), with regards to ABN and GST tax law .