Emma Louise Johnson lives at 85 Overton Way, Leederville, 6978, with her husband Robert David Johnson. The couple bought the house in 2020, financing it with a loan from the Commonwealth Bank, and they are currently paying off their mortgage. 

 

Emma's tax file number is 974 928 674 and her date of birth is 2 June 1997. Her contact phone number is 0412 345678.

Robert's tax file number is 967 584 791 and his date of birth is 27 February 1995.

 

Emma works as a teacher at Seacrest High School. Robert is an IT manager. They currently have no children.

Information provided by Emma for the preparation of her 2022 tax return

Emma's payment summary for the year ended 30 June 2022 shows the following information:

 

           Payer: Department of Education (ABN 81 485 759 863) 

Salary	$95,287
Total tax withheld	$23,400
Reportable employer superannuation contributions	$6,000

 

 Robert's taxable income is $138,000. He has reportable superannuation contributions of $9,000 and a reportable fringe benefits amount of $3,200.

Emma provides you with receipts for the following items, which she is seeking to claim as deductions. Her work at the school includes time spent assisting with physical education classes and coaching the Year 7 and 8 netball teams.

• Teacher Registration Board of WA - annual fee (paid 22/02/22)                   $90
• Gym membership - 12 months (paid02/07/21)                                               $780
• Cross-trainer shoes (for sports days)                                                                $245
• Sports clothes                                                                                                       $130
• Sunscreen expenses                                                                                            $28
• Hats                                                                                                                        $22

Emma has receipts for the following donations during the year:

• Princess Margaret Hospital                                                           $250
• Amnesty International                                                                    $75
• The Royal Australasian College of Surgeons                               $30

      She also gave $100 to a struggling pensioner living in her street, and estimated that she spent a further $100 on buskers throughout the year. 

 

Emma and Robert have an investment property located at 180 Montrose Way, Morley, which is rented out to a long-term tenant. Emma and Robert have engaged professional property Managers to manage the property on their behalf. The fees paid to the property managers include things like collecting the rent, conducting regular property inspections, and arranging any necessary maintenance work. 

      The following items relate to the rental property during the financial year:

• Rent received ($380 per week)                                                  $19,760
• Property management fees (Professionals Property Managers)               $1,575
• Council rates                                                                             $1,260
• Water service charges                                                             $1,230
• Landlord insurance                                                                  $1,162
• Interest paid on mortgage                                                      $18,264
• Pest control costs                                                                     $1,400
• Repairs and maintenance                                                       $2,030

 

      The pest control costs were incurred when termites were discovered in the front yard and underneath the floorboards in main bedroom of the house.

 

      The repairs and maintenance expenditure included two items:

      (i)     cost paid to a plumber to fix a leak underneath the bathroom sink ($430); and

      (ii)    cost paid to a tradesman to replace of the front wooden picket fence that was damaged by termites with a Colorbond steel fence ($1,600).

In addition to their mortgage-related accounts at the Commonwealth Bank, Emma and Robert have a joint bank account at Westpac Bank. The details are as follows:

 

                          Bank:                           Westpac Bank

                          BSB No:                       831-292

                          Account No:               34965721

                          Account Name:          R.D. & E.L. Johnson

 

       During the financial year, the account earned gross interest of $360.00. As Emma and Robert had not notified the bank of their tax file numbers, tax of $169.20 was withheld by the bank.

 

 If Emma is due to receive a tax refund this year, she would like it to be paid into the Westpac bank account.

 

During the year, Emma sold some of her shares through an online broker. The following table summarises the number of shares sold and the selling price:

Company	Date sold	No of shares sold	Selling price  per share
Marri Corporation Ltd	27 March 2022	1,000	$9.00
Coral Corporation Ltd	13 October 2021	400	$14.00
Coral Corporation Ltd	3 May 2022	200	$13.00

 

       Emma had purchased 2,000 shares in Marri Corporation Ltd on 12 March 2012 for $4.50 per share. Brokerage fees amounted to $29.95. 

 

       Emma had purchased 700 shares in Coral Corporation Ltd on 22 May 2016 at a cost of $15 per share. Brokerage amounted to $32.55. 

 

       Brokerage for each sales transaction was $29.95.

 

Emma received two dividend payments from her shareholding in Marri Corporation Ltd during the year: a final fully franked dividend of 32 cents per share (paid on 14 September 2021), and an interim dividend of 26 cents per share franked to 80% (paid on 15 March 2022). Coral Corporation Ltd paid no dividends. Neither company is a base rate entity. 

Emma paid private health insurance premiums totalling $1,440 for the year to HXF Insurance. 

Extract from Emma's private health insurance statement:

Emma has not elected to receive any entitlement to a private health insurance tax offset in the form of reduced premiums throughout the year.

In October 2021, Emma paid a registered tax agent $240 to prepare and lodge her 2021 income tax return.