Question
DiMarco Enterprises Pty Ltd ('DME') is a family-owned company that has operated in the ACT for over 60 years. DME currently operates the following businesses:
DiMarco Enterprises Pty Ltd ('DME') is a family-owned company that has operated in the ACT for over 60 years. DME currently operates the following businesses: Fresh food (fruit & vegetables) wholesaling business in Fyshwick; Property Development Business building and selling new homes around the ACT region; Home Loans business - providing home loans to buyers of new homes sold by DME. For the month ended 30 September 2023, DME made the following supplies to customers and tenants (including GST where applicable): Sales - Fresh Food $550,000 Sales - New Residential Property $4,400,000 Home loans - Residential Property $660,000 DME purchased new computer equipment from JB Hi Fi during the month for the GST inclusive price of $22,000. The computer equipment is used in the DME Head Office that manages all of the DME businesses. Assume DME is registered for GST.
Required: Using legislation, case law and IRAC problem-solving technique, fully explain the GST consequences of the above. Ensure you explanation includes a consideration of whether any of the supplies that DME makes are taxable supplies (and if not, why not), and whether DME makes any creditable acquisitions. (Do not consider the financial acquisitions threshold)
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