Nigel Nigella is an Australian resident sole trader who owns and operates the Business Consultancy firm Strategy One. He provides business advice and consultation for small and medium sized businesses and private individuals. He operates this business with the help of one secretary/receptionist and three management, all on a full-time basis. These employees often travel to provide services on site. 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). In completing this assignment part, begin with an assessable income figure of $779,091 and consider the information below to calculate his taxable income and income tax payable for the year ended 30 June 2024.

Additional information for the year ended 30 June 2024:

As part of a salary package provided to a senior employee, Nigel has included a BMW which the employee is entitled to use privately and garages at their home. Nigel purchased the vehicle for $45,000 and provided it to the employee on 1 September 2023. It has a limited effective life of 8 years. Stamp duty (a state government tax on the transfer of property) was $1,740. Fuel costs were $500 per month which the employee paid whilst re-fuelling at the service station. The employee was not re-imbursed for the fuel costs. Insurance and registration were paid on 1 September costing $1,350 and $750 respectively. Appropriate logbook records reveal that the business use of the BMW is 60%. Apart from payments made to government departments (stamp duty and registration), assume all payments with respect to the BMW were made to Goods and Services Tax (GST) registered entities. Martin has made an election under s. 10(1) of the FBTAA 86.

Other expenses, which may be taken as deductible and fully creditable acquisitions, amounted to $315,000.

Nigel's PAYG installment for 2024 amounted to $230,000. He has private health insurance including hospital cover. Ignore any private health insurance rebates.

Required based on the provided information, calculate Nigel's taxable income and income tax payable (including Medicare levy) for the income year ending 30 June 2024. Justify the answers with reasonably argued positions by citing, describing and applying all relevant law. Please note the following (over the page): Do NOT treat this as an accounting exercise. This is a law exercise.

Using individual tax rates for the year 2024: This income is taxable. $0 - $18,200 ->Nil

$18,201 - $45,000->19 cents for each dollar over $18,200.

$45,001 - $120,000 -> $5,092 plus 32.5 cents for every dollar over $45,000.

$120,001 - $180,000 ->$29,467 plus 37 cents for $1 over $120,000

$180,001 and over -> $51,667 plus 45 cents for every dollar over $180,000.

These rates do not include Medicare levy of 2% of taxable income for individual taxpayers. There is an additional Medicare levy surcharge that is payable if the taxpayer does not have private health insurance with hospital cover and has taxable income above a certain amount. Medicare levy surcharge is not payable by taxpayers who have private health insurance including hospital cover. Note that Nigel has such cover.