Damian is an architect, operating a small practice in Daylesford. During the current tax year, his records indicate:

Receipts:

$
115,000	Professional architectural fees
10,000	Exempt income
30,000	Proceeds for sale of shares (see note a)
10,000	Proceeds from sale of artwork (see note a)
7,000	Dividends received from an Australian public company franked to 50%.
17,000	Net salary received for part time work for an accreditation body reviewing membership applications (the body withheld $1,000 in PAYG instalments)

Payments:

$
500	Donation to the Red Cross (DGR) in his personal name (not on behalf of his architecture practice).
800	Repairs to a window broken in Damians reception area earlier in the year
150	Speeding ticket received when Damian was running late to a client meeting.
15,000	Electricity and rent for the business premises

Additional information:

(a)	Damian purchased the shares in 2010 for $15,000 and the artwork in 2006 for $400. The artwork had been hanging in the firms reception area. Damian also has carried forward losses from prior years from collectables of $5,000.
(b)	Damian has a carry forward Division 36 past year trading tax loss of $2,000.
(c)	Damian has private medical and hospital insurance and is eligible for a private health insurance offset of $200.

REQUIRED

Calculate Damians total tax liability for the 30 June of the current tax year. Figures can be rounded to the nearest dollar. All numbers are exclusive of GST.

You should briefly explain your treatment of the items in this question. For example:

Item Explanation

$4,000 Conference expense Deductible s. 8-1, revenue expense incurred in the production of assessable income. Finn v FCT