Lucia Jackson is a 21 year old aspiring performing artist. Lucia graduated from a Bachelor of Musical Theatre at Griffith University (as a Commonwealth Supported Student) in September 2021. In the 2021-22 tax year, Lucia carries out a variety of activities to earn income including bartending at Savile Row Cocktail Bar, dance instructor and choreographer at various dance schools in the Brisbane metropolitan area and a member of the ensemble in Hamilton the Musical Sydney season. Some of Lucias personal information includes; - She lives with her partner Ethan at 2/65 Pembroke Road Coorparoo. Ethan and Lucia purchased the property in 2021. Lucias parents gave her a graduation gift of $50,000 which she used as a deposit for the purchase of the property. Ethan and Lucia own the property equally. - Lucia has a transaction account with AMP where her income is transferred from her employers and customers. - Lucia owns shares with Ballet Makers Inc. and Calvin Klein Ltd - Lucia receives royalty income from a book that she wrote Brisbane to Bolshoi a little girls dream. The book is published in Australia. - Lucia owns a rental property at 3/160 Brisbane Road Ipswich. - Lucias parents and brother all live in Brisbane. - Lucia was born in Brisbane at Sunnybank Private Hospital. Hamilton the Musical (on Broadway), offers Lucia a role in there ensemble from 1 January 2023 to 31 December 2025. If Lucia accepts the job offer, she is uncertain what the tax consequences would be for her income from Hamilton (Broadway) and her other investment income. Lucia has been told by her friends that it would be best if she was considered a foreign resident for tax purposes while she was overseas. Lucia comes to you for advice on what she should do to be classed as a foreign resident and to understand why it is important for her tax residency status to be determined as foreign.

Required

Part 1: Letter of Advice Based on your research and application of Lucias circumstances in the File Note you are required to write a letter of advice to Lucia advising her what actions she should take to be considered as an Australian foreign resident for tax purposes if she decides to accept the position with Hamilton the Musical (Broadway). From the information provided, you should also advise how each of her receipts would be treated if she is considered as a foreign resident. You should discuss the following; - Any income received from Ballet Makers Inc. or Calvin Klein Ltd. - Any royalty income received from the sale of her book - Employment income - Rental income

Part 2: File Note - application of facts to relevant law In a file note document, you should demonstrate your tax law research and the relevance of the law to Lucias situation. You should use the information you know about Lucia already and discuss what actions Lucia could take to be considered a foreign resident. You should discuss actions to be taken both in Australia and overseas. An easy way of achieving this is to structure your file note in ILAC format. You should ensure that you justify your research and application by referencing relevant case law, legislation and tax rulings.