Liz is an engineer who works at a firm of consulting engineers in Sydney, named ABC Partners (ABC). Liz started working with ABC on 1 July 2018. ABC provided her with an attractive remuneration package made up of the following items:

Salary of $250,000 and $25,000 in super .

Exclusive use of a new Audi motor vehicle from 1 July 2020 purchased at that time by ABC for $45,000 with all registration, insurance and servicing costs paid for by KLM (Liz paid $1,500 for the petrol):

Laptop worth $2,500 so Liz can work away from the office.

Payment of $700 in parking fines and speeding tickets that Liz incurs driving the car, irrespective of whether the car is being used for work or private purposes.

Liz resigns her job at ABC on 12 April 2022. Liz then enters into an agreement with ABC that in return for a payment of $420,000, she will not disclose any confidential information received whilst working at ABC.

Liz owns an investment property in Sydney that has been rented out to tenants from the time it was purchased. On 1 May 2022, Liz had a new dishwasher installed in the investment property at a cost of $1,000. At the same time, Liz replaced the linoleum on the kitchen floor with porcelain tiles costing $2,000.

Liz is a shareholder in Westpac. She received a fully franked dividend of $14,000 on 10 December 2022.

Required:

Using relevant legislation and case law, please answer the following questions:

1. Advise ABC about its Fringe Benefits Tax liability because of the remuneration package provided to Liz for the FBT year ending 31 March 2023, including the operation of the otherwise deductible rule if appropriate.

2. Advise Liz about the income tax consequences of her remuneration package from ABC.

3. Advise Liz about the income tax consequences of receiving the $420,000 payment from ABC.

4. Advise Liz about the income tax consequences of purchasing and installing the dishwasher, and in relation to the replacement of the flooring in the kitchen. 5. Advise Liz about the income tax consequences of receiving the fully franked dividend from BHP.