Instructions:

No depreciation calculations required. Show all workings. 15 marks question. Solution to be presented in word.

Amy is a single 35 year old Chartered Accountant who works for PBC Accountants in Perth city and also runs a small business making earrings - Bloom Earrrings.

Amy has incurred the following income and expenses throughout the 2023 financial year.

Amy earns wages from PBC Accountants of $100,000. The tax withheld on this was $20,000.

She has her Chartered Accountants membership fees of $1,000 but this is fully reimbursed by PBC Accountants.

Amy received a bonus for signing on a $100,000 client for PBC Accountants, the bonus was $5,000.

Amy has an entrepreneurial mind and loves to expand her knowledge - she enrolled in a Masters of IT and her university fees was $6,000. She paid for this personally, not on HECS

Amy's other passions is fishing. She has a subscription to a fishing magazine for $660

As PBC Accountants does not provide a lot of training, Amy has a subscription to an accounting online learning platform for $5,000.

Amy is provided a shirt with PBC Accountants logo on it which she uses at least once every week.

Amy bought a new Mazda this financial year for $35,000 and uses her car to drive to PBC's clients and her total number of kilometres for the year is 6000kms, she did not keep a log book. Work does not reimburse her for any of the car expenses as it is part of her role.

Amy has a little mini van to pickup stock, deliver finished goods, drop off parcels at the post office for Bloom Earrings. She has provided you the following information:

Total kilometres travelled during the year 15,000kms

Total business kms travelled 11,000kms

Expenses incurred for the mini van - Fuel $5,000, Registration $2,000, Insurance $2,000, Repairs $500

Purchase details of minivan - Purchased on 01/07/2022 for $60,000 - the vehicle was fully financed at 10% interest

Amy bought new equipment for Bloom Earrings - a clay press machine to assist in making the earrings which costed her $5,000. She purchased this on 14/09/2022 and the effective life of this equipment per the ATO is 4 years.

Amy signs up for a course to learn how to make clay necklaces as she is intending to expand her business into this area - the course costed her $2,000 and was in Sydney. She flew out on Friday for the course which ran on Saturday and Sunday. She then decided to stay till Wednesday to sight see in Sydney. Her flight costed her $1,000 and her accommodation for the whole period of time was $2,500.

Amy uses an online accounting software to keep records of her business Sales and records show that she made $50,000 worth of sales between 1 July 2022 to 30 June 2023.

Amy sometimes sells her earrings at weekend markets. To assist her in running the market she pays a contractor to work at the market with her. She totalled up that she had paid this contractor $5,000 for the year.

Amy makes all the earrings at home and she noted that she worked 1500 hours from home this financial year.

A client of Bloom Earrings had an allergy and tried to demand for a refund as well as for her medical bills to be paid by Amy. Amy was unsure if the claims was fair and so she engaged a lawyer to manage this claim and the lawyer charged Amy $3,300. The outcome of this claim was that Amy had to pay this client $600. Amy claimed this back via her insurance company who provided Amy the full $600 back.

Amy bought some shares in CMP Bank and sold them in the current financial year. She bought 1,200 shares at $5 per share on 10/09/2022 and sold them all at $4 per share on 14/04/2023.

She also found an antique vase in her storeroom that she bought on Facebook on 14/09/2018 for $350 and sold it for $1,000 on 21/06/2023.

Amy has no children, has no private health insurance for the whole year. Her HECS loan from her accounting degree was $25,000.

Requirement:

Please calculate Amy's tax payable as at 30 June 2023.