Q1: Paul moved to Australia on 17 December 2019 and became a resident of Australia for tax purposes on that date. He earned $76,000 in taxable income for the year ended 30 June 2020 in Australia and had PAYG tax of $18,200 deducted by his employer. He has no dependants and is not entitled to any tax offsets/rebates and you can assume that he had no earnings outside of Australia during the year.

What will be Paul's net tax payable or refundable (to the nearest dollar) for the year ended 30 June 2020? (excluding Medicare levy and offsets):

a) $2,929 payable

b) $1,953 refund

C) $1,578 refund

d) $1,653 refund

e) $6,500 payable

Q2: Which of the following items would not constitute trading stock on hand?

a. Computer spare parts of a computer supplier.

b. Trout in a trout farm breeding pond which will be caught and sold.

c. Goods held for sale on consignment by an agent.

d. Demonstrator motor vehicles owned by a car dealership which will be sold to the public once they have travelled a certain amount of kilometres

e. Shares held by a share trader.

Q3: Janine, an Australian resident, is a laboratory technician. During the year she signed a contract in Australia with a French company to work for the company in Ireland. Her salary is paid into a bank account she holds with the Bank of England in London. The source of her salary is:

a. Australia

b. France

c. England

d. Ireland

e. None of the above

Q4: In November 1983, Alan purchased a block of land for $370,000 with the intention of one day building a shopping complex and leasing out the shops to tenants.

In May 1998 he changed his mind and decided to sell the land and so listed it with a real estate agent for $710,000. The property did not sell so in January 2004, on the advice of his agent, Alan decided to sub-divide the land which at that time had a market value of $1.2m.

He obtained council approval to re-zone and sub-divided the land into 200 residential blocks. Alan managed the sub-division operation himself which included organising all council permits, construction of roads and installation of utilities. He did, however, enlist the real estate to market and eventually sell the blocks. He had sold all of the blocks by 30 June 2020 and received a total of $6.8m.

Based on the principles of cases such as Whitfords Beach what whould be the first element cost used by Alan to calculate any gain on the sale of the blocks?

a) $710,000

b) $490,000

c) $1.2 m

d) $370,000

e) $6.8 m