As part of the process of preparing "working papers" and preparing to lodge tax documentation for client Sandra:

1. Determine the maximum deduction available to Sandra for car expenses.
2. What would be a calculation of her taxable income for year ended 30 June 2022.
3. What would be a calculation of the tax payable or refund for the year ended 30 June 2022.

Sandra Smith is an Australian resident who is employed as a surveyor for a local building company. During the year ended 30 June 2022, she received gross salary of $79,200 and a car allowance of $4,000 (PAYG tax withheld was $18,950). She also received a fully franked dividend from ANZ Bank Ltd and $5,600 was credited to her account. Also, during the year she won $25,000 in a "lottery draw" and a holiday valued at $2,500 from her employer as a reward for completing a special project.

As part of her employment, Sandra used her Toyota Corolla for visits to clients, suppliers, and trade shows. A logbook maintained by Sandra for 12 continuous weeks disclosed she travelled 4,000 kms for business purposes out of a total of 5,714 kms travelled. Odometer readings disclosed a total of 26,580 kms travelled during the year. Payments made by Sandra included:

Registration and insurance	$ 2,100
Tyres	$850
Petrol	$3,240
Loan repayments (interest $1,400)	$4,600
Car washes	$420
Parking meters (business-related)	$145

The vehicle originally cost $24 000 and has an adjustable opening value of

$19 500. Sandra calculates decline in value of the car using the prime cost method over 8 years.