Ms. Organised and Mr. Savvy are partners running an event management partnership called "Everperfect Events". The partnership agreement indicates that Ms Organised is entitled to 80% of the profits and losses of the partnership and Mr Savvy is entitled to 20% of the profits and losses of the partnership. This reflects the different contributions they make on a time basis to the business. They have no employees and do all the work in the partnership themselves. The partnership also owns shares in Granby Pty Ltd. 

Income & Expenses of "Everperfect Events" are as follows:

Income

Event Management Fees              600,000

The bulk of the fees are received when the service is provided. However, some clients pay in advance., At 30 June 2023 $125,000 in fees had been received for events that had not yet taken place. The policy is to refund 50% of the client's money if they cancel. 

Lease premium paid by a lessee who rented out part of their business premises                         45,000

Interest on drawings                                    980

Interest income                                            7,521

Sale of DYI Event management packs      15,000

Dividends Granby (franking credits attached of $4,166.67)       25,000

Rent                15,000

Expenses

Operating expenses   200,000

Of these expenses $140,000 was actually paid by 30 June 2023 with the remainder unpaid. In addition, $10,000 was paid during the year which related to invoices unpaid at 30 June of the prior year. 

Purchase of the goods for DYI Event Management Packs    2,500                                

Salaries to partners - paid 80% to Ms Organised and 20% to Mr Savvy  90,000

Superannuation for partners - paid equally for each partner         25,000

Interest on capital paid only to Mr Savvy             4,500

Interest on arm's length loan from Ms Organised      5,250

Self-education Expenses     10,000

Required:

1. Calculate the net income of the partnership, the taxable income and explain your reasons for the inclusion/exclusion of the above items; and

1. The net tax payable by Ms Savvy and Mr Organised for the year ended 30 June 2023, you are not required to calculate the SBE Tax Offset