Based on Australian Taxation Law, What is the total Assessable Income for the following information: (Please provide details calculation working)

Appreciate if anyone could help me on this part of assessment.

DETAILS RELATING TO INCOME 1. Gross Salary and Wages During the entire 2016 income year, Scott worked for Sedgman Consulting Ltd. Scott was provided with his annual PAYG Payment Summary from his employer in relation to the period 1 July 2015 to 30 June 2016. His 2016 PAYG Payment Summary revealed the following: Name of Payer: ABN of Withholder: Gross Salary: PAYG Tax Withheld: Reportable Fringe Benefits Amount: Reportable Employer Superannuation Contributions: Sedgman Consulting Ltd 80 675 091 925 $135,194 $42,316 $9,168 $7,800 The reportable fringe benefit amount of $9,168 shown on Scott's 2016 PAYG Payment Summary related to a salary-sacrifice arrangement that the firm has in place with all of their senior engineers. Scott arranged for Sedgman Consulting to pay several personal expenses on his behalf. These expenses were all subject to fringe benefits tax. 2. Entertainment Allowance As part of his job, Scott is frequently required to entertain clients of the firm. This involves taking clients out for lunch at expensive restaurants around the Brisbane metropolitan CBD to discuss engineering matters arising from largescale construction projects. In addition to his gross salary shown at Item 1 above, during the 2016 income year Scott received an entertainment allowance of $6,500 from his employer. PAYG withholding tax of $2,276 was deducted from this amount. These amounts were shown separately on Scott's 2016 PAYG Payment Summary. 3. Interest Income Scott maintains accounts at two different Australian banks. He provides your group with the following information in relation to the interest he has earned during the 2016 income year: $ Westpac online savings account (gross interest) Bank of Queensland (BOQ) access account (net interest) (TFN withholding tax of $88.20 deducted by bank - refer note below) BOQ term deposit (interest accrued - refer note below) 500.00 Scott opened his Bank of Queensland (BOQ) access account on 15 October 2015. When opening the bank account, Scott did not have his tax file number (TFN) with him. He subsequently forgot to provide the bank with his tax file number. Accordingly, the bank has deducted 49% (or $88.20) in TFN withholding tax in respect of interest earned on this account during the 2016 income year. However, the net remaining amount of $88.20 (representing 51%) was credited to his BOQ access account. Furthermore, on 1 January 2016, Scott invested $25,000 into a 12-month term deposit earning 4.00% interest with the Bank of Queensland with interest to be credited on maturity. This term deposit will mature on 1 January 2017. Scott is expecting interest of $1,000 will be credited to his bank account upon maturity on 1 January 2017 and has therefore calculated that interest of $500 has accrued to him as at 30 June 2016. 4. Dividends Received Scott owns shares in several Australian listed public companies. During the 2016 income year, he received the following dividends: Name of Company 1. 2. 3. 4. 5. 6. 7. 8. AMP Billabong (refer below) Cabcharge CSR Horizon Oil (refer below) Telstra Westfield Holdings Woolworths Unfranked Dividend $65 $480 $102 (net) $34 - Franked Dividend $120 $720 $488 $820 $120 $1,047 Franking Percentage attached to Franked Dividends 100% 75% 100% 100% 60% 100% In the case of all franked dividends received, the company tax rate was 30%. (a) Billabong Limited Dividend Scott owns 6,000 shares in Billabong Ltd, Scott was entitled to a dividend of $480 (unfranked). However, instead of receiving the cash dividend, Scott elected to apply this amount under the company's dividend reinvestment scheme so that he received an additional 400 shares in the company. On the date of the dividend was declared, the share price of the company was $1.20 per share. Hence, instead of taking the $480 cash dividend (which would have been unfranked), Scott elected to receive an additional 400 shares in the company. (b) Horizon Oil Limited Dividend In the case of the Horizon Oil Ltd dividends, Scott once again forgot to provide his tax file number (TFN) to the share registry. Accordingly, the share registry deducted 49% (or $98) TFN withholding tax in respect of the Horizon Oil dividend. The net amount of the unfranked dividend (ie. $102) was paid to him by cheque on 27 April 2016. All of the above dividends have been derived from personal bank account, and not in relation to any business undertaken. 5. US Dividend Received Scott owns 1,000 shares in the US company, Google. On 4 May 2016, he received a net dividend cheque of US$765 from the company's US share registry. According to the dividend statement that accompanied the cheque, foreign withholding tax equivalent to 15% of the gross dividend (being US$135) had been deducted from the gross dividend received US$900. The foreign exchange rate on the date the dividend was received was $A1.00 = $US0.71. There were no franking credits in respect of these foreign dividends. Furthermore, some years ago, Scott borrowed A$10,000 from Macquarie Bank to fund the purchase of these shares. He incurred interest of A$615 during the 2016 income year in respect of this loan. Scott advises you that he does not have more than $A50,000 invested in foreign assets. 6. Rental Property - 28 Grey Street, Paddington, QLD, 4064 On 21 July 2015, Scott purchased a three-bedroom house in Paddington in his own name at a cost of $680,000. Stamp duty and legal fees relating to this acquisition totaled $22,500 and were also paid on the same date. The house has been permanently rented out since 21 July 2015 (ie. 49 weeks). For the 2016 income year, Scott derived gross rental income of $34,300. Expenses relating to the rental property were as follows: $ Building & pest inspection report (incurred prior to purchasing the house) 960 Cleaning Council rates Interest on Westpac loan (from 21 July 2015 to 30 June 2016) Landlord insurance Property agents commission Repairs and maintenance (all tax-deductible) Travel to and from the rental property to inspect prior to purchase Travel to and from the rental property to inspect after purchase To finance the purchase of the rental property, on 21 July 2015, Scott borrowed $520,000 from Westpac. Loan establishment fees, totalling $1,800, were incurred on this date. The term of the loan is 25 years. Scott put the remaining $160,000 cash in himself to fund the acquisition of the property. When he purchased the house, Scott was provided with a detailed schedule from Blake's Quantity Surveyors advising that the house was originally constructed on 19 March 1993. Blake paid $140 for this schedule. The schedule confirms that the original construction cost of the house was $216,000. The property was rented out partially furnished. On 15 August 2015, Scott purchased several items for the benefit of his tenants. These items are detailed as follows: $ Microwave oven Refrigerator Dishwasher Carpets In early-February 2016, two trees fell down and broke a retaining wall on the property in various places. It is believed that these two trees fell due to ground softened as a result of the recent heavy rains and flooding during January 2016. Upon advice from a local builder, the retaining wall was fully rebuilt in at the end of February 2016. The same materials that had been used in the original wall were used to build the new retaining wall. The wall's location, height and length also remained unchanged. The cost of the new retaining wall (including tradesman's labour costs) came to $9,680. This bill was paid on 18 March 2016. Scott chooses not to allocate assets costing between $300 and $1,000 into a low-value pool. Instead, he prefers that you depreciate each depreciable asset in accordance with their effective lives as set out by the Commissioner in Table A of Taxation Ruling TR 2015/2 (refer to Residential Property Operators 67110). Assume that Scott wishes to maximise any depreciation deduction claimed. Students are advised to refer to the additional information at the back of this document for further guidance as to what depreciation rates to use for both Division 40 and Division 43 claims. Note: There are 346 days from 21 July 2015 to 30 June 2016 There are 321 days from 15 August 2015 to 30 June 2016 There are 105 days from 18 March 2016 to 30 June 2016 7. Capital Gains/(Losses) Scott advises you that he sold the following assets during the 2016 income year: (a) On 25 March 2016, Scott sells a block of land at Caloundra which he had inherited from his grandfather on 7 September 2005 for $260,000. His grandfather had initially purchased this land in June 1985. The land has been kept vacant the whole time, but Scott was hoping to build an industrial storage shed complex on the land, however, this never eventuated. His grandfather initially purchased the land for $50,000 in June 1985 and at the time of his death on 7 September 2005 the land was valued at $150,000. Since acquiring ownership in September 2005, Scott has only spent minimal money on maintenance (eg. grass cutting and occasional land clearing totalling $8,500 and council rates totaling $13,500). The sales agent charged him $6,000 in fees in relation to selling the land. (b) On 21 April 2016, Scott sells a sculpture for $3,000. Scott had purchased this sculpture for $2,000 on 21 January 2010. (c) On 17 May 2016, Scott sold a caravan for $15,000. Scott used this caravan to go camping with his family during the summer holidays. He initially bought this caravan on 5 October 2011 for $23,000. (d) On 13 June 2016, Scott sold a baby grand piano for $25,000 which was also inherited from his grandfather on 7 September 2005. His grandfather had bought this piano on 17 June 1990 for $15,000. As at the date of his death, the piano was reliably valued to be worth $20,000. Scott informs you that he has carried-forward (unapplied) net collectable capital losses of $1,500 relating to the sale of a painting during the 2013 income year. He also has carried-forward (unapplied) net capital losses of $4,955 relating to the sale of some Qantas shares in 2014. Scott wishes to minimise his capital gains tax payable wherever legally possible. Assume that Scott is not eligible to rollover any of part of the capital gain relating to any of the assets. DETAILS RELATING TO INCOME 1. Gross Salary and Wages During the entire 2016 income year, Scott worked for Sedgman Consulting Ltd. Scott was provided with his annual PAYG Payment Summary from his employer in relation to the period 1 July 2015 to 30 June 2016. His 2016 PAYG Payment Summary revealed the following: Name of Payer: ABN of Withholder: Gross Salary: PAYG Tax Withheld: Reportable Fringe Benefits Amount: Reportable Employer Superannuation Contributions: Sedgman Consulting Ltd 80 675 091 925 $135,194 $42,316 $9,168 $7,800 The reportable fringe benefit amount of $9,168 shown on Scott's 2016 PAYG Payment Summary related to a salary-sacrifice arrangement that the firm has in place with all of their senior engineers. Scott arranged for Sedgman Consulting to pay several personal expenses on his behalf. These expenses were all subject to fringe benefits tax. 2. Entertainment Allowance As part of his job, Scott is frequently required to entertain clients of the firm. This involves taking clients out for lunch at expensive restaurants around the Brisbane metropolitan CBD to discuss engineering matters arising from largescale construction projects. In addition to his gross salary shown at Item 1 above, during the 2016 income year Scott received an entertainment allowance of $6,500 from his employer. PAYG withholding tax of $2,276 was deducted from this amount. These amounts were shown separately on Scott's 2016 PAYG Payment Summary. 3. Interest Income Scott maintains accounts at two different Australian banks. He provides your group with the following information in relation to the interest he has earned during the 2016 income year: $ Westpac online savings account (gross interest) Bank of Queensland (BOQ) access account (net interest) (TFN withholding tax of $88.20 deducted by bank - refer note below) BOQ term deposit (interest accrued - refer note below) 500.00 Scott opened his Bank of Queensland (BOQ) access account on 15 October 2015. When opening the bank account, Scott did not have his tax file number (TFN) with him. He subsequently forgot to provide the bank with his tax file number. Accordingly, the bank has deducted 49% (or $88.20) in TFN withholding tax in respect of interest earned on this account during the 2016 income year. However, the net remaining amount of $88.20 (representing 51%) was credited to his BOQ access account. Furthermore, on 1 January 2016, Scott invested $25,000 into a 12-month term deposit earning 4.00% interest with the Bank of Queensland with interest to be credited on maturity. This term deposit will mature on 1 January 2017. Scott is expecting interest of $1,000 will be credited to his bank account upon maturity on 1 January 2017 and has therefore calculated that interest of $500 has accrued to him as at 30 June 2016. 4. Dividends Received Scott owns shares in several Australian listed public companies. During the 2016 income year, he received the following dividends: Name of Company 1. 2. 3. 4. 5. 6. 7. 8. AMP Billabong (refer below) Cabcharge CSR Horizon Oil (refer below) Telstra Westfield Holdings Woolworths Unfranked Dividend $65 $480 $102 (net) $34 - Franked Dividend $120 $720 $488 $820 $120 $1,047 Franking Percentage attached to Franked Dividends 100% 75% 100% 100% 60% 100% In the case of all franked dividends received, the company tax rate was 30%. (a) Billabong Limited Dividend Scott owns 6,000 shares in Billabong Ltd, Scott was entitled to a dividend of $480 (unfranked). However, instead of receiving the cash dividend, Scott elected to apply this amount under the company's dividend reinvestment scheme so that he received an additional 400 shares in the company. On the date of the dividend was declared, the share price of the company was $1.20 per share. Hence, instead of taking the $480 cash dividend (which would have been unfranked), Scott elected to receive an additional 400 shares in the company. (b) Horizon Oil Limited Dividend In the case of the Horizon Oil Ltd dividends, Scott once again forgot to provide his tax file number (TFN) to the share registry. Accordingly, the share registry deducted 49% (or $98) TFN withholding tax in respect of the Horizon Oil dividend. The net amount of the unfranked dividend (ie. $102) was paid to him by cheque on 27 April 2016. All of the above dividends have been derived from personal bank account, and not in relation to any business undertaken. 5. US Dividend Received Scott owns 1,000 shares in the US company, Google. On 4 May 2016, he received a net dividend cheque of US$765 from the company's US share registry. According to the dividend statement that accompanied the cheque, foreign withholding tax equivalent to 15% of the gross dividend (being US$135) had been deducted from the gross dividend received US$900. The foreign exchange rate on the date the dividend was received was $A1.00 = $US0.71. There were no franking credits in respect of these foreign dividends. Furthermore, some years ago, Scott borrowed A$10,000 from Macquarie Bank to fund the purchase of these shares. He incurred interest of A$615 during the 2016 income year in respect of this loan. Scott advises you that he does not have more than $A50,000 invested in foreign assets. 6. Rental Property - 28 Grey Street, Paddington, QLD, 4064 On 21 July 2015, Scott purchased a three-bedroom house in Paddington in his own name at a cost of $680,000. Stamp duty and legal fees relating to this acquisition totaled $22,500 and were also paid on the same date. The house has been permanently rented out since 21 July 2015 (ie. 49 weeks). For the 2016 income year, Scott derived gross rental income of $34,300. Expenses relating to the rental property were as follows: $ Building & pest inspection report (incurred prior to purchasing the house) 960 Cleaning Council rates Interest on Westpac loan (from 21 July 2015 to 30 June 2016) Landlord insurance Property agents commission Repairs and maintenance (all tax-deductible) Travel to and from the rental property to inspect prior to purchase Travel to and from the rental property to inspect after purchase To finance the purchase of the rental property, on 21 July 2015, Scott borrowed $520,000 from Westpac. Loan establishment fees, totalling $1,800, were incurred on this date. The term of the loan is 25 years. Scott put the remaining $160,000 cash in himself to fund the acquisition of the property. When he purchased the house, Scott was provided with a detailed schedule from Blake's Quantity Surveyors advising that the house was originally constructed on 19 March 1993. Blake paid $140 for this schedule. The schedule confirms that the original construction cost of the house was $216,000. The property was rented out partially furnished. On 15 August 2015, Scott purchased several items for the benefit of his tenants. These items are detailed as follows: $ Microwave oven Refrigerator Dishwasher Carpets In early-February 2016, two trees fell down and broke a retaining wall on the property in various places. It is believed that these two trees fell due to ground softened as a result of the recent heavy rains and flooding during January 2016. Upon advice from a local builder, the retaining wall was fully rebuilt in at the end of February 2016. The same materials that had been used in the original wall were used to build the new retaining wall. The wall's location, height and length also remained unchanged. The cost of the new retaining wall (including tradesman's labour costs) came to $9,680. This bill was paid on 18 March 2016. Scott chooses not to allocate assets costing between $300 and $1,000 into a low-value pool. Instead, he prefers that you depreciate each depreciable asset in accordance with their effective lives as set out by the Commissioner in Table A of Taxation Ruling TR 2015/2 (refer to Residential Property Operators 67110). Assume that Scott wishes to maximise any depreciation deduction claimed. Students are advised to refer to the additional information at the back of this document for further guidance as to what depreciation rates to use for both Division 40 and Division 43 claims. Note: There are 346 days from 21 July 2015 to 30 June 2016 There are 321 days from 15 August 2015 to 30 June 2016 There are 105 days from 18 March 2016 to 30 June 2016 7. Capital Gains/(Losses) Scott advises you that he sold the following assets during the 2016 income year: (a) On 25 March 2016, Scott sells a block of land at Caloundra which he had inherited from his grandfather on 7 September 2005 for $260,000. His grandfather had initially purchased this land in June 1985. The land has been kept vacant the whole time, but Scott was hoping to build an industrial storage shed complex on the land, however, this never eventuated. His grandfather initially purchased the land for $50,000 in June 1985 and at the time of his death on 7 September 2005 the land was valued at $150,000. Since acquiring ownership in September 2005, Scott has only spent minimal money on maintenance (eg. grass cutting and occasional land clearing totalling $8,500 and council rates totaling $13,500). The sales agent charged him $6,000 in fees in relation to selling the land. (b) On 21 April 2016, Scott sells a sculpture for $3,000. Scott had purchased this sculpture for $2,000 on 21 January 2010. (c) On 17 May 2016, Scott sold a caravan for $15,000. Scott used this caravan to go camping with his family during the summer holidays. He initially bought this caravan on 5 October 2011 for $23,000. (d) On 13 June 2016, Scott sold a baby grand piano for $25,000 which was also inherited from his grandfather on 7 September 2005. His grandfather had bought this piano on 17 June 1990 for $15,000. As at the date of his death, the piano was reliably valued to be worth $20,000. Scott informs you that he has carried-forward (unapplied) net collectable capital losses of $1,500 relating to the sale of a painting during the 2013 income year. He also has carried-forward (unapplied) net capital losses of $4,955 relating to the sale of some Qantas shares in 2014. Scott wishes to minimise his capital gains tax payable wherever legally possible. Assume that Scott is not eligible to rollover any of part of the capital gain relating to any of the assets. 8. Sportsbet Winnings Scott is a keen football follower. Each weekend he loves nothing better than watching the National Rugby League (NRL) and Australian Football League (AFL) games. Every Friday afternoon before the Friday evening games, Scott places a bet of $25 on the NRL games and $25 on the AFL games for the weekend. During the 2016 income year, Scott won 6 times. However, the winnings were reasonably small that they barely covered the amount he bet. However, in the last week of June, Scott took a multibet that ended up proving to be a winner for him. He ended up winning $6,780 for that particular bet