Melissa is a mechanic. She runs her own business specializing in repairing electric cars. During the year, Melissa incurred the following expenses:

a. salary costs to her two regular employees of $100,00 (paid electronically through the business's payroll system which automatically applies the relevant tax withholding and pays the amount to the ATO)

b. salary costs to casual employees of $10,000 (these employees are only required during busy periods and are paid in cash "of the books");

c. salary costs of $2,000 to her brother who is a university student (paid electronically through the business's payroll system; Melissa knows the amount is excessive, but she wants to support him in his studies);

d. travel costs of $3,000 for travel from her home to her repair shop;

e. $5,000 on special overalls and eye goggles for Melissa and her employees to use when they are repairing cars;

f. childcare costs of $22,000 so that Melissa is able to go to work every day;

g. $1,000 on a one- day course on a new accounting software program that Melissa wants to use in the business to better comply with new tax reporting requirements.

Advise Melissa as to whether the above expenses would be deductible for income tax purposes. Provide reasons for your answer including references to legislation, case law and any relevant ATO Guidance.