) John has the following transactions for the month of February 2020. All figures include GST where applicable:

Purchases on credit

38,500

Cash purchases

9,900

Cash sales

44,000

Credit sales

86,900

Operating expenses paid in cash (all including GST)

17,600

Required:

Calculate the net GST payable (or refundable) to the ATO for the month, assume that the taxpayer uses the cash basis reporting method. (10 marks)

ii) Saras employer provides her with the private use of a motor vehicle which cost the employer $90,000 (inclusive of GST and luxury car tax) on 1 April, 2020. She travelled 20,000 kilometres during the 2020-21 FBT year of which 12,000 were for business. Saras employer is registered for GST and claims input tax credits on the motor vehicle. The running costs of the vehicle were $2,400, out of which Sara contributed $400.

Saras employer also provided her with a $200,000 loan at a fixed rate of 2% interest. The principal will be payable in full in 2025, or when she leaves her position with her employer, whichever comes first. Half of this loan was used to finance her purchase of an investment property and the remaining half was for her family holidays.

Required:

Calculate the employers total FBT liability for the benefits provided to Sara for the 2020-2021 FBT year.

Using the statutory method for the car fringe benefit.

The deemed market interest rate for 2020-2021 FBT year is 4.80% (10 marks).