Bronwyn Murray operates a clothing store in Brisbane as a sole trader. This business specialises in selling evening gowns and cocktail dresses to members of the public and it is registered as an enterprise for Goods and Services Tax (GST). Bronwyn comes to you for advice about seven separate questions in relation to her 20202021 income year ending 30 June 2021, and her Fringe Benefits Tax year ending 31 March 2021.

Bronwyn is a finalist in the Brisbane City Councils Businesswoman of the Year competition. She attends a gala event on 1 September 2020 where the winner is announced. Bronwyn takes one of the evening gowns in the store for herself and wears it to the gala event. The cost price of this evening gown is $700, and its market value is $2,000.

You are required to:

Advise Bronwyn by discussing the income tax implications of her decision to take the evening gown for herself. Provide reasons for your answer, referencing relevant sections of the Income Tax Assessment Acts. you must ignore GST.