Hilary Smith, an Australian resident, owns a share investment portfolio. During the 2019/20 tax year, she received distributions of income from some of the investments, and she sold some portions of the portfolio.

The following distributions of income were received from Australian resident public companies:

1.10.2019                  Fully franked distribution from Waterworks Ltd               $4,500

15.2.2020                  Unfranked distribution from Fortstreet Ltd                       $3,200

23.4.2020                  Fully franked distribution from Boom Ltd                          $2,000

18.5.2020                  Partially franked distribution from AC

                                    Holdings Ltd – (franked to 60%)                                           $4,000

During the year, she sold a portion of her share portfolio. Details of the shares sold are as follows:

·         500 AIG shares (purchased 5 August 2002 for $2 each), sold on 30 November 2019 for $0.65 each, to prevent further loss. Brokerage was $280 on purchase and $220 on sale;

·         1,000 Midas Mining Ltd shares (purchased on 1 May 1985 for $1 each), sold on 30 August 2019 for $38 each. Brokerage was $50 on purchase and $250 on sale;

·         500 Bronze Ltd’s shares (received from her father’s estate), sold on 6 October 2019 for $58 each. Her father purchased these shares on 2 June 1983 for $0.10 each and they had a market value of $35 each at the time of her father’s death on 17 March 2016). Brokerage was $1,500 on the sale of the shares.

ADDITIONAL INFORMATION:

1): Hilary Smith’s salary for the 2019/20 year was $138,000.

2): During the 2019/20 tax year, Hilary Smith paid $13,900 bank interest on a loan that she used to purchase the shares in Waterworks Ltd, Fortstreet Ltd, Boom Pty Ltd, and AC Holdings Ltd.

3): Hilary does not have private health insurance.

REQUIRED:

a). ADVISE Hilary Smith on the tax consequences (if any) arising from these transactions. 

b). CALCULATE Hilary Smith’s net tax payable or refund entitlement for the 2019/20 tax year.