In relation to CGT, which of the following statements are correct? Explain your answer citing the relevant law.

a)

Julia sold her boat for a total price of $30, 000. She agrees to receive payments from the buyer in three equal payments of $10,000 over a two-year period. The first payment is to be made on collection of the boat and the remaining two payments are to be made in 12-month instalments. Capital Gains Tax will be recognised for each individual payment in the year it is received.

(b)Jackson sold some Telstra shares and made a gain of $800. Jackson also sold a painting and made a loss of $300. Jackson can reduce the gain on the shares by the loss made on the sale of the painting.