John is your client and has come to you to prepare his tax return. During the 2018-19 financial year, John disposed of the following assets:

(a) A two-storey residence at Stuart Park which he acquired in May 1991. In 1995 John vacated the premises to work in Japan for three years, during this period the property was rented. Other than the 3 year period, John has lived in the property as his residence. He paid $370,000 to purchase the property and received $840,000 on 27 June 2019, after the real estate agent deducted commissions of $10,000. (b) John acquired BHP shares on 15 July 2018 for $25,000. He sold those shares on 2 May 2019 for $40,000.

REQUIRED:

Calculate Johns Capital Gain, subject to Tax for the year ending 30 June 2019. Provide justification for your calculations using legislation and case law.