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Megan incurs the following expenditure during the 2 0 2 3 income year: She pays $ 3 0 , 0 0 0 for alpaca food.
Megan incurs the following expenditure during the income year:
She pays $ for alpaca food.
She pays for the alpaca food using her credit card. She pays $ in interest to the credit card company for the purchase.
She receives an $ speeding fine on the way to Melbourne to attend a fashion show where the models were wearing clothing made from the wool of Megan's alpacas. Megan has a stall at the fashion show where she displayed the alpaca wool from her farm.
On May she buys a laptop, costing $ The Commissioner states that the laptop has an effective life of three years. She uses the laptop for her employment and the rest of the time for streaming Netflix.
She travels from her home at Nicholls to the farm at Lake George on Friday afternoons, returning on the following Sunday night, by taxi, at an annual cost of $
She pays the shearer $ each year to shear the alpacas. He is not an employee.
Megan is thinking about starting a new business selling her alpacas for meat. She asks her accountant to investigate the feasibility of the business before she decides. The accountant's report cost $ Megan decides not to start the business.
Megan decides that she needs to improve her skills farming alpacas. She travels to the United States for weeks to study alpaca farming techniques. She spends weeks travelling around California visiting alpaca farms discussing the latest techniques. She then spends a week visiting wineries in the Napa Valley area of California on a food and wine tour with friends. The total cost of trip airfares and accommodation was $
Required:
Using legislation and case law, explain the GST implications of the transactions relating to the alpaca keeping activity to Megan arising in the financial year, and whether a GST liability or an input tax credit will arise including the amount Assume that all entities are registered for GST All amounts are GSTinclusive where applicable Do not calculate the net amount for the purpose of the section of the GST Act. Do not consider the GST consequences of Megan's building activity or the dividends.
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