On $1$ September $2023,$ Waterworks Pty Ltd is private resident company for tax purposes, made its first frankable distribution to its shareholders for the $2023/2024$ tax year. This amounted to $$160,000.$ Waterworks Pty Ltd passed on a $$60,000$ franking credit to its shareholders for this distribution. On $1$ March $2024,$ the company paid a dividend of $$70,000.$ As at $30$ June $2024,$ Waterworks Pty Ltd has a deficit franking account balance of $$30,000$ and total franking credits of $$400,000$ for the $2023/2024$ year.

Required:

You must support your answers with legal sources $($legislation$,$ rulings or cases$).$

Assuming that Waterworks is not a base rate entity for the $2023/2024$ year, advise Waterworks Pty Ltd of:

a$)$ What amount of franking credit should Waterworks Pty Ltd attach to the dividend $($$$70,000)$ it paid on $1$ March $2024$ to ensure compliance with the benchmark franking rule for the $2023/2024$ tax year?

b$)$ The question is independent and not related to question a$)$ and the first dividend paid by Waterworks Pty Ltd$.$

Assume Irene Johnson who earned a salary of $$150,000,$ received a fully franked dividend income of $$2,500$ from Waterworks Pty Ltd and received a net rental income of $$7,000.$ Additionally, she had $$40,000$ tax withheld from her salary. Irene is single, with no children and doesn't have private health insurance.

Advise Irene Johnson regarding her income tax liability for the $2023/2024$ tax year.