Part A

Grant operates a newsagency business as a sole trader in Gladesville, Sydney. On 1 February 2023, Grant won a Holden Astra motor vehicle from a newspaper publisher in a sales competition. Under the rules of the competition circulated by the publisher to newsagents, the prize was awarded to Grant because he was the agent who achieved the highest percentage increase in sales of relevant newspapers and magazines over a predetermined target. There were no restrictions on Grant in being able to sell the car. The car has a retail sale price of $28,000. Grant already has a good car, and therefore has no real use for the vehicle he won. Grant decides to give the car to his mother as a present.

Fully advise Grant on the assessability of receipt of the car, etc.Tax legislation and principles of income tax law must be referred to in support of your advice. Ignore CGT issues.