Jackson Grove, aged 45 years, started a bottled drink retail business two years ago as an Australian private company, CleanBottle Pty Ltd. Jackson is a managing director of CleanBottle Pty Ltd. Jackson emailed you regarding the following issues related to his company.

CleanBottle Pty Ltd provided some 'benefits' to various stakeholders. As this is the first time Jackson has done this, he needs some guidance to determine fringe benefits and calculate the FBT. The following information was extracted from Jackson's email; all the information relates to the FBT year ending 31 March 2023. CleanBottle Pty Ltd is registered for GST.

(a) A briefcase ($440 including GST) for a potential employee as an enticement to join the organisation.

(b) Overseasholidaypackagetoanemployee'swifecosting$19,000(GSTfree) (c) A holiday package costing $36,500 (including GST) to a customer as part of a competition. (d) On 1 April 2022, CleanBottle Pty Ltd purchased a new company car at a cost of $51,000

including GST. The car was registered and insured on that date and was to be used exclusively by Jackson. The total distance travelled by the car in 12 months was 32,000 km, 9,000 km of which was for business purposes. The car was garaged at Jackson'sresidence at all times except for 10 days - the car was at mechanic's garage for services. Total running costs (GST inclusive) related to the car's use were $7,200 and Jackson contributed $2,100 towards the cost of the petrol and oil for the car. Jackson wishes to opt for the Small Business Entity (SBE) option, but he is unsure whether this is a good choice for him and what benefits will become available when choosing the SBE.

CleanBottle Pty Ltd's account details are as follows. CleanBottle Pty Ltd is registered for GST. (e) The business turnover for the financial year ending 30 June 2023 was $3,980,000, including GST.

(f) The company purchased a delivery truck for $495,000 (including GST) on 31 May 2023.

(g) The opening stock value was $189,000 on 1 July 2022 and the closing stock value was

$192,000 on 30 June 2023.

(h) The company paid an annual insurance premium of $18,000 starting from 1 April 2023.

CleanBottle Pty Ltd uses an accrual method to account for his income and expenses. Case Questions

With reference to the relevant legal principles, advise Jackson Grove on the following issues in your draft business letter of advice:

1.) Which of the items listed at (a) - (d) above do not fall within the meaning of 'fringe benefit'?

2.) For any items (a) - (d) that constitute a fringe benefit, calculate the taxable value and the minimum FBT payable.

3.) Is Jackson's business eligible to be the SBE?

4.) What concessions are available for CleanBottle Pty Ltd based on the account details listed above at (f)-(h)?

5.) What 'tax' concessions are available regarding income tax and capital gains tax for the SBE?