Big Shoes Pty Ltd ('Big Shoes') is a shoe manufacturing company with a factory in Dandenong, Victoria. The company's shoes have become very popular as they were promoted by several Instagram 'influencers' with large followings. The company decided to expand its manufacturing capacity by building a second factory in Victoria. On 20 March 2021, the company purchased a block of land in Geelong, Victoria for $3 million with the intention of building a state-of-the-art shoe manufacturing factory on the land. Before Big Shoes could start construction on the factory, the Victorian Government announced the introduction of a 'special economic zone' in Werribee, with tax incentives for manufacturing activities. Big Shoes decided that it would be a better decision financially (and politically) to build the new factory in Werribee rather than Geelong.

Big Shoes enlisted a local Geelong real estate agent to sell the land in Geelong. The agent charged a fixed fee of $50,000 regardless of the sale price. The agent advised Big Shoes that it could make a significant profit on the sale of the land if it subdivided the land and developed it as a residential area prior to sale. Big Shoes did not have the time or money to undertake the development, but it did want to maximise its profit on the sale of the land. In November 2021, Big Shoes subdivided the land at a cost of approximately $500,000. It also obtained the necessary residential development permits for approximately $6,000. Big Shoes sold the land for $5 million on 16 May 2022.

Advise Big Shoes as to its assessable income consequences arising out of the above information.

This question is linked to taxation law of income from Business; Income from Property and Taxation of Capital Gains. I cannot find the relevant topic so I chose finance.