Luke Overhear is an aspiring author, life-coach and motivational speaker, fascinated by the topic of leadership and self-development.

Luke has spent the last two (2) years honing their craft, attending conferences, listening to podcasts, and participating in online seminars and courses.

In July 2022, Luke established a website advertising life-coaching services. His website was marketed through various social media and within 1 month, Luke had secured 4 clients.

At this time, Luke applied for an AB and registered the trading name, "Life with Luke".

Luke had also intended that this platform would also springboard opportunities for other avenues such as publication or motivational speaking.

Each client paid Luke $500, in advance each month for 5 1-hour life-coaching sessions. If the sessions were not utilized in that month, Luke would offer either a refund or the opportunity to carry the session over to the following month.

Luke had always intended to earn a living full-time from his passions but the reality of starting something new meant that they needed to keep working. To this end, Luke was also a full-time employee at Dynamite Books. This meant that Luke's coaching was only offered on weekends or after hours online.

By the end of FY2022-23 Luke had earned the following amounts:

• $25,000 salary and wages from Dynamite Books
• $10,000 from coaching clients ($2,000 related to sessions to be provided).
• $5,000 advance from a book publisher paid on 30 June 2023 for a draft book to be delivered in October 2024.
• $2,000 paid in advance for a motivational speaking opportunity to be held in September 2024. The money was paid to Luke on 6 May 2023.

Luke had also incurred the following amounts:

• $3,000 interest on a loan Luke took out to set up the website and market his brand.
• $500 on Zoom subscription for the purposes of conducting client coaching seminars.
• $600 on motivational posters which Luke hung up in his room as a background for his clients to see while in session.

Required

Advise Luke as to whether they are carrying on a business and if so, what the scope of that business includes.

Luke has also asked that you perform a BITL calculation based on the information provided.

Remember to apply the 4-step process and where relevant cite legislative provisions or cases to support your analysis.

For the calculation, ensure you provide comments supported by either (or any combination of) a sectional reference, case or narration as to what items would be included or excluded as Assessable Income or Allowable Deductions.