Case Study and Questions Jean Johnson is a 60 year old employee who recently retired from Koles at Phillippa Island. She has engaged you for your services to assist her in preparation of her tax return for 2018/19. On 29 August 2019 Jean sent you the following email:

From Jean Johnson Sent : 29 August 2019, 9:00:52 AM To : Tax Accountant Subject : Tax Return 2018/19 - jean Johnson

Dear Tax Accounting Team, As discussed, here are the following matters that should help you with the preparation of my tax return.

1. Earnings from Koles - I retired from Koles on 30 June 2019. As store manager, I received $80,000 from Koles in net wages after my employer had deducted $24,000 PAYG. I also received an entertainment allowance of $10,000 which I fully spent on entertaining clients, particularly engaging new clientele (I have kept my receipts and can substantiate the deductions). My unused Annual Leave ($5,000) and Unused Long Service Leave ($5,000) was paid to me on 30 June 2019. On my last day, the regional manager gave me a brand new i-Phone valued at $1,000 (silly - they left the Apple store price on it) which was a lovely way to remember the 30 years I have worked loyally for Koles. What was even more surprising was the other gift I received from the staff, who gave me a travel and accommodation voucher valued at $1,000. I am just so blessed to have made so many nice friends over the years.

2. Further benefits from Koles - What was really wonderful, was to receive another $100,000 from Koles which I wasn't expecting. I had worked in a senior position for so many years. It was explained to me that I got this money as a $10,000 one off amount followed up with $3,000 for each year of service. What a wonderful employer. With all the interstate travel I had to do for Koles, my flights, amassed 100,000 Qantas Frequent Flyer points that I used to travel to Bali, and it saved me $1,500 when taking a Business class ticket.

what is the relevant legislation, and the tax implications of the above transactions to Jean Johnson. give advice as a background report to put into Jean's file. (Hint : address the issues as raised using the same numbering system / headings above. it would be advisable to adopt a report style approach using 3 headings like - Issue - Reasons/Discussion - Impact on Taxable Income $ ) Be succinct given the word limit, but in your discussion make sure you state, the relevant legislative authority and/or case law authority and the effect on taxable income)