Please answer the question according to Taxation in Australia. (and please do not copy paste from another similar question as the answer is irrelevant)

You work in the tax division of an accounting firm. Your firm has received a new client, Billy Mason, a resident primary producer. The tax partner has asked you to analyse the information below and prepare a letter of advice on the tax concessions available to Billy. The partner also requires an estimate of Billys taxable income in the report. Billy provided the information below to your firm in a meeting with the tax partner on 15 July. The information is for the year ended 30 June 2021

Wool Sales	September Clip	70,000
	March Clip	75,000
Shearing Expenses	September Clip	22,000
	March Clip	18,000
Selling Expenses	September Clip	12,000
	March Clip	7,500

Insurance proceeds of $25,000 received in April 2021 as a result of sheep lost in a fire.

Gross profit on sales of sheep during the year $525,000

Included in the above figure were 4,000 sheep sold on 1 March 2021 for $175,000 due to a bushfire destroying part of the paddocks. 3,000 of these sheep has been purchased (average cost $42 per head) and the other were from natural increase.

Billy installed telephone lines on his property on 7 June 2015 for $40,000

Billy installed a water pump in 19/20 for $18,000 (effective life 15 years). He also purchased and installed another pump on 31 March 2021 at a cost of $21,000.

Due to the drought , part of his farm has been affected by land degradation. Billy put up fencing to keep sheep away from this area. The fencing cost $18,000 on 1 March 2021.

Other deductible Expenses $252,100.