ASSIGNMENT INSTRUCTIONS Tanya Tassle owns Born Again Bags, a not for profit business that is registered for GST.

Born Again Bags supports the diversion of post-consumer material (waste) into reusable bags to replace plastic bags. Fabric is gathered or donated and made into cloth bags which are sold to customers via an online shop. Born Again Bags also receives income from donations and grants.

Receipts for the June quarter (inclusive of GST where appropriate):

Sales of bags $39,950

Donations $23,450

Grants $19,800

Trade-in of industrial sewing machine previously used in the business $1,000

Bags donated to local growers co-op (market value $210) $0

Expenses for the June quarter (inclusive of GST where appropriate):

Fabric and thread purchases $9,900

Fabric donated (market value $3000) $0

Subcontractors (not registered for GST) $6,600

Rent $6,000 Lunch at local restaurant* $230

Accommodation for staff at conferences (Hotel) $1,870

Airfares for staff to attend conferences** $3,850

Bookkeeping services $1,210

First Aid courses for staff members $550

New sewing machine $4,399 Business Loan (Principal $450 and interest $50) $500

*Lunch at the local restaurant was for Tanya, the owner of Born Again Bags, and a commercial garment manufacturer who donates waste fabric to the business. For income tax purposes this amount would be classified as entertainment and a deduction would be denied under s32-5 ITAA97.

**During the period Born Again Bags paid for air fares for staff to attend a conference in Sydney where Tanya was speaking. Tanya was ill the week before the conference and could not attend. Consequently, the staff did not attend either and $1,100 of the airfares mentioned above were not used. The airline did not refund this amount.

Born Again Bags also imported labels from Canada. The cost of the labels was $550 and the freight was $35 (Australian Dollars). The supplier in Canada did not charge GST on these goods.

3 Salaries & Wages: Born Again Bags has 6 employees: 2 office staff and 4 machinists. They are paid weekly. All employees are entitled to the tax-free threshold.

Jenny, Kate, Lisa, and Martin are all permanent employees. Their weekly pay is based on an annual salary: and paid salaries.

Annual salaries are: Jenny: $39,000 Kate: $23,920 Lisa: $52,000 Martin: $18,720

Naomi and Oscar are casual employees and their weekly wage is based on the hours they work. Their work hours are set out in the table below. Employee/Week Naomi $24/hour Oscar $16/hour ( Hours below are for Naomi then Oscar)

Week 1 April 8 10

Week 2 April 7 10

Week 3 April 10 15

Week 4 - April 12 15

Week 5 May 10 0

Week 6 May 10 0

Week 7 May 15 0

Week 8 May 12 10

Week 9 May 10 10

Week 10 June 12 10

Week 11 June 8 15

Week 12 June 8 10

Week 13 - June 8 0

Business Activity Statement: The ATO has advised that Tanya Tassle, as an individual taxpayer, has a quarterly income tax instalment of $3,200. This amount is payable by her personally in the June Quarter.

In the last FBT year Fringe Benefits were provided to the office manager. There is an FBT instalment showing on the BAS of $2,400. No Fringe Benefits have been provided in the current FBT year.

There are no liabilities for WET or LCT, and no fuel credits.

QUESTION

e) WEEK 5: Prepare a fully labelled Business Activity Statement for the quarter ended 30 June 2019. (7 Marks) Show all calculations and formulas, and support all answers with references to legislation, case law and/or rulings. Up to eight (8) marks awarded for quality of explanations & referencing.

Im not sure if you need more time to answer or there needs to be a time period?

thanks

E BAS OPTION 1: Calculate GST & report quarterly 1A $ 7,655 G1 Total Sales Include GST Export Sales Other GST-Free Sales Capital Purchases Non-capital Purchases $ 84,200 YES/NO $ - $ - $ 35,109 $ - SUMMARY GST on Sales WET LCT PAYG Withheld PAYG income tax instalment FBT instalment FTC over claim 3,200 $ 2,400 2 $ 13,255 PAYG tax withheld $ $ 38,214 4,018 Total Salary & Wages Amount Withheld No ABN Other amount total amounts withheld GST on purchases WET refundable LCT refundable PAYG instalment credit FBT credit FTC credit $ 4,018 $ 2,525 OPTION 1: Pay a PAYG instalment amount quarterly $ - PAYMENT OR REFUND Is 8A more than 8B? YES/NO FBT INSTALMENT Your payment amount $ 10,730 -F2 Est FBT for year Varied amount payable Variation Code $ E BAS OPTION 1: Calculate GST & report quarterly 1A $ 7,655 G1 Total Sales Include GST Export Sales Other GST-Free Sales Capital Purchases Non-capital Purchases $ 84,200 YES/NO $ - $ - $ 35,109 $ - SUMMARY GST on Sales WET LCT PAYG Withheld PAYG income tax instalment FBT instalment FTC over claim 3,200 $ 2,400 2 $ 13,255 PAYG tax withheld $ $ 38,214 4,018 Total Salary & Wages Amount Withheld No ABN Other amount total amounts withheld GST on purchases WET refundable LCT refundable PAYG instalment credit FBT credit FTC credit $ 4,018 $ 2,525 OPTION 1: Pay a PAYG instalment amount quarterly $ - PAYMENT OR REFUND Is 8A more than 8B? YES/NO FBT INSTALMENT Your payment amount $ 10,730 -F2 Est FBT for year Varied amount payable Variation Code $