Ash is a 23-year-old Norwegian girl who decides to travel around Australia. On 21st August 2021, she arrived in Melbourne on a 12-month working holiday visa. Before coming to Melbourne, Ash lived with her family in Norway. Ash worked as a full-time primary school teacher in Norway. As she was living with her parents, she was not required to pay for any accommodation. However, Ash contributed to her food and utility bills. To fulfil her travel dreams, Ash was primarily eager to save money for her upcoming travel plans and did not buy any significant assets while living in Norway. She plans to return to Norway after completing her travel dreams and starting a new career. However, she did not have anything concrete in her mind. During the first week in Melbourne, Ash lived at a family friend's house. Then she moved to the mountain areas to work for ski season. This allowed her to move around the places in Victoria. She moved to Queensland and worked for the fruit picking industry for the whole Spring season. During her stay in Victoria and Queensland, she lived in the local backpackers motels. Her jobs helped her save enough money to travel to Western Australia and the Northern Territory. She was flexible in accepting any casual role to support her finance as she faced any financial need. Therefore, she worked in several caf shops and warehouses. Her friends helped her to get those jobs and shared accommodations. She finished her exploration after staying in Perth and Tasmania for three months in total. On the 10th of March, Ash decided to return to Norway and stay there for a while before her next travel exploration.

Requirement 1: (Word limit 750)

Based on the given situation, discuss relevant legislation, case law and rulings to elaborate whether Ash would be considered a resident of Australia for tax purposes for the income year ended 30 June 2022. You are not required to consider the temporary residency rules.

Requirement 2:

(Word limit 750) Based on your conclusion on Ashs residency, discuss the source and derivation of income and allowable expense principles and critically analyse each transaction to calculate her taxable income for the year. For this response, you are not required to consider the consequences of any Double Tax Agreements between Australia and Norway. Ash has given you the following details for the year-ended 30 June 2022. She has kept all the receipts and other evidential documents.

1. Asaprimaryschoolteacher,thesalaryearnedfromNorwaybefore21 August 2021 is equivalent to AUD$2,500.

2. SalaryreceivedfromfruitpickingAUD$8,000.

3. SalaryearnedfrommultiplecafshopsAUD$$4000

4. InterestonherAustralianbankaccountof$70.

5. Tipsreceivedfromcustomers$220

6. Lotterywon$100(localfundraisingtoprotectwildanimals)

7. InterestreceivedfromherNorwegianbankaccountwasequivalentto AUD$300, from which $40 withholding tax had been deducted by the Norwegian bank before crediting her account.

8. Ashsoldallherexcessbelongingsinthemarketplacefor$300before leaving Australia.

9. TotalcostforAccommodation$3000

10.Food $2000

11.Sunscreen for the outdoor jobs $120

12.Boots required for the jobs $200

13.Travel cost $4000

14.Medical expense $140

15.Cost of buying and cleaning any compulsory uniforms or protective clothing that Ash needed for her jobs $135

16.Tax Agent fees paid $90