Ash has been employed in her family's restaurant, 'Malua Bay', as manager since it opened in October 2020 in Malua Bay, regional New South Wales. Prior to October 2020, Ash worked at 'Digital Co.' in Sydney as a digital account manager. As part of her new role, Ash carries out various activities. These include waitressing, stocktaking, accounts and staffing management, set up and cleaning, ordering and supply collection (as well as other ad hoc activities). 

You are the newly appointed tax practitioner to complete Ash's tax return and have downloaded the prefill report for Ash's tax return

From the above, you determine that out of the above details, Ash's ordinary income include salary and interest. 

Ash has provided you with the following information:

·        Invoice for the preparation of the prior year tax return, $95 (deduction allowed by section 25-5 ITAA97)

·        Travel expenses of $4,500 (deduction allowed by section 8-1 ITAA97)

Home running expenses of $100 calculated under the 'short-cut' method relating to the period Ash worked from home whilst employed by Malua Bay (the home office deduction is allowed by section 8-1 ITAA97 and the method employed in line with the temporary COVID-19 mechanisms introduced.

Determine for Ash the following (assuming Ash is a resident of Australia for tax purposes):

1.       Taxable income 

2.       Basic tax liability (ignore tax offsets in this question) 

3.       Medicare levy and Medicare levy surcharge

4.       HELP repayment

Item 1: Salary or Wages Payer Details Income Type Gross $ PAYG Withheld $ Digital Co. Salary $10,000 $1,000 Malua Bay Salary $50,000 $15,000 Item ITI: Reportable Fringe Benefits Payer Details Amount $ Malua Bay $15,000