Kerry Smart commenced her retail clothing business in February 2020. On the 13 February 2020 she acquired a new computer and off- the-self software for her business. The computer is used solely for a taxable purpose. The business has an estimated average turnover of $400,000.

The tax invoice for the computer shows the following details:

Details

Cost $

GST $

Price $

Computer

5,600

560

6,160

Delivery Charge

40

4

44

Installation fee

100

10

110

Computer software

2,400

240

2,640

Maintenance of computer for 12 months

200

20

220

The effective life of a computer is estimated at 4 years.

Required:

Assume Kerry does not elect to enter the SBE regime and uses the prime cost method of depreciation rather than any instant asset write off, what capital allowance deduction can she claim for the 2019-20 tax year? Show all calculations and cite relevant legislation where appropriate to support your answer.