On 1 September 2020, Dri hired Ally Arden, an experienced yoga teacher from New Zealand to teach lunch time and evening yoga lessons to the corporate clients mentioned in Question 2. Ally was required to travel to the clients’ offices in various suburbs around greater Melbourne to conduct the lessons. Between 1 September 2020 and 31 March 2021, Ally was provided with the use of a car as part of her remuneration package. The car, which had been purchased by Dri on 31 March 2016 for $66,000 (which included GST of $6,000) was previously used by a former yoga instructor employed by Dri. Ally used the car to travel to the corporate yoga classes 5 days a week although she parked the car at her house each night and drove the car around Melbourne and regional Victoria during the weekends for relaxation. Between 1 September 2020 and 31 March 2021, the car had travelled 30,000 kilometers. As a condition for using the car, Ally contributed $1,000 towards the running cost of the car. In addition, Dri reimbursed Ally $330 for car parking expenses incurred when Ally travelled to clients’ premises to conduct the corporate yoga lessons

Your task:

Advise both Dri and Ally of the tax implications that may arise in relation to

Ally’s remuneration package. Calculations must be made where appropriate.