Nigel Nigella is an Australian resident sole trader who owns and operates the Business consultancy firm Strategy One. He provides consultation and advice around business management needs, for small/medium sized businesses and private individuals. He operates this business with the help of one secretary/receptionist and three management consultants who are all employed on a full-time basis. These employees often travel to provide advice to clients at their respective business premises. Although the firm is a small business, it does not use any of the small business entity concessions. Nigel is registered for the Goods and Services Tax (GST).

For the year ending 30 June 2024 Nigel has handed you the following information regarding this business (note, further information will be forthcoming in assignment part 2).

Receipts

For consultancy services rendered - cash received $850,000

Further information

Accounts receivable as at 30 June 2023 $95,000

Accounts receivable as at 30 June 2024 $102,000

Required

based on the provided information, calculate Nigel's assessable income for the income tax year ending 30 June 2024.

Justify the answers with reasonably argued positions by citing, describing (where appropriate) and applying all relevant law.

Use A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 to refer to particular section and apply it.

important case laws for answering the question, Carden's Case, Brent v FCT, Henderson v FCT, Dixon v FCT etc.

also use these topics in the answer, Ordinary income, derivation and any other.

Please note the following that may be relevant:

Do NOT treat this as an accounting exercise. This is a law exercise and marks are awarded for the use of the 'cite, describe, apply' approach.

The facts state that Nigel is registered for GST. Take this as a fact. You do not need to cite or apply the law on GST registration.