Because of his wifes ill health, Brian sold his gift shop and family home in Victoria and moved to WA on 20 June this year. Brian had acquired the vacant premises 10 years ago for $750,000 and established a business on that date. He sold the business on 20 May this year for a net consideration of $1,880,000. This was made up as follows:

Goodwill $440,000

Trading Stock $60,000

Fittings $120,000

Shop and land $1,360,000

Less debt secured over stock and fittings ($100,000)

In addition, Brian received a further $20,000 for signing a contract not to open another business within a 10 km radium for the next five years. The turnover of the shop for the previous financial year was $450,000. Brians home is valued at $1.8m. He also has a 45% interest in a property development company which has assets of $5.4m. His wife also has a 5% interest in that company. The turnover of the property development company last year was $1.2m.

Advise Brian of the tax consequences arising from the sale