On 1 July 2021 the finance department of Wollongong Council entered into a contract with IBM Pty Ltd for the provision of services by Peter Hank, an expert computer programmer who is nominated in the contract. The contract specifies that Peter is required to develop a computer program for use in the department's IT system in accordance with functional specifications provided by the department. The contract specifies a fixed amount by way of payment to IBM Pty Ltd for the development of the computer program that is required to be produced within 24 months of commencement of the contract. The contract is for the performance of a specific task that produces an outcome or result, with Peter maintaining a high level of discretion and flexibility as to how the work ought to be performed. Required: Discuss how the above arrangement will impact Peter's deduction when calculating his taxable income and tax payable/refundable ?