Consider whether Craig is in a business for tax purposes and whether he has any assessable income as a result of selling his fruit (4 marks).

Craig works as a designer in Melbourne, but he also has a small farm on the outskirts of the city. Craig loves spending his weekends at the farm working in his garden. He has always given a lot of his produce to the locals and they always tell him how great it tastes. This year, Craig decides to spend more time doing what he loves, and he decides to move to the farm. He spends Wednesday nights (and the weekends) in the garden growing seasonal fruit. He has a lot of equipment already, but he visits local op-shops to get the rest of the tools he needs. He doesnt keep records and is not good at organising his orders. He sets up a fruit storage area in the garage so that the fruit does not spoil. Craig is quite busy, so he pays a local teenager to help him package up the fruit on the weekends. He buys a cheap van so he can deliver the fruit to people who purchase it and he also uses the van for some of his design projects in Melbourne. This year, Craig receives $5,000 from the sale of his fruit.