Use Australian Law for the below:

Brian runs a small retail business as a sole trader. After many years of hard work, he decided to sell his business and other assets in New South Wales and moved to New Zealand and

retired when he was aged 49 years.

A small retail business

Brian acquiredthe shop on 21 June 1998 for $450,000for running his retail business.He sold the shop on 21 June 2023 for a net consideration of $1,000,000. The agreed value of the assets at the date of transfer were as follows:

Shop $900,000

Trading stock$60,000

Depreciating assets$40,000

Brian’s business– Balance Sheetas at 21 June 2023 is as follows:

Assets	Liabilities
Cash	$20,000	Bank Loan	$200,000
Accounts Receivable	$10,000	Trade Creditors	$40,000
Trading stock	$30,000
Net depreciating assets	$55,000
Shop – cost	$450,000

Brian’s business- Income and Expenses from 1 July 2022 to 21 June 2023 are as follows:

Income

Sales		$300,000
Expenses
Cost of goods sold
Opening trading stock	$60,000
Add: Purchases	$90,000
Cost of goods available for sale	$150,000
Less: closingtrading stock	$30,000
Cost of goods sold		$120,000
Bank interest		$11,000
Wages – Part-time staff		$30,000

The following information relates to Brian’s business for the year ended 30 June 2023:

• 1. Accounts receivable balance of $10,000in the Balance Sheet cannot be recovered due to the debtor being declared the bankruptcy on 30 June 2023.
• 2. The trading stock balance of $30,000(cost) in the Balance Sheet does not include trading stock costing$5,000 that is yet to be delivered and remains on a freighter at sea as at 30 June 2023. Delivery to the shop is expected on 5 July 2023. However, Brian does hold the bill of lading (FOB shipping point) as at 30 June 2023.
• 3. Bank interest paid up to 21 June 2023 was $11,000. Brian also paid $220 additional

interest charge to the bank on 5 July 2023 for the interest covering the period from 22 June 2023 to 30 June 2023.

• 1. Brian paid off the bank loan ($200,000) and outstanding trade creditors ($40,000)as at 30 June 2023.
• 2. Brian will receive a further $90,000in 2026 for signing a contract not to open another business within a 5 km radius for the next 3 years.
• 3. Accounting depreciation rate is same as the tax depreciation rate.

Brian also sold the following assets on 25 June 2023:

• 1. a yacht acquired in 2016 for $20,000 and sold for $11,000
• 2. collection of stamps acquired on 30June 2022 for $13,000 and sold for $18,500
• 3. Vase from Elizabethan era purchased on 3 March 2001 for $12,000 and sold for $1,000 because it turned out to be a fake.

Brian had given various items of furniture and his books and music to his brother and total value was $9,000 as at 25 June 2023. Brian left Australia on 30 June 2023 and at that time he ceased to be a resident. When Brian left Australia, he still owned the following assets:

• 1. a house: Brian purchased a house in Sydney on 1 January2018 for $750,000and lived in the house until he decided to leave Australia on 30 June 2023. The market value is $1,300,000 as at 30 June2023.
• 2. A small parcel of shares in ANA (public-listed company). The 1000 shares were acquired on 1 June 2019 at $15 per share with share brokerage fees of $30. The market value is $30 per share as at 30 June 2023.

Brain has a carry forward capital loss of $160,000 as at 30 June 2022 from the sale of shares. 

REQUIRED:

Please show all workings and relevant authorities must be cited to support your answers.

1. 1. Advise Brian on the tax consequences (if any) arising from above transactions.
2. 2. Calculate Brian’s tax liability for the year ending 30 June 2023, taking into account of the low-income tax offset, the Medicare levy and the Medicare levy surcharge where they are relevant.