Question 1 (20 marks)

Maria Fernandez moved from Spain to live in Australia on a permanent basis on 1 January 2019. During the 2018-2019 tax year she received the following income from Australian sources:

1.10.2018 Fully franked distributions from BHP $2,000 1.2.2019 Partially franked (60%) distributions from ANZ $4,000 15.3.2019 Unfranked distributions from Fosters $3,200 30.6.2019 Fully franked distribution from Westpac $7,000

Advise Maria on the tax consequences of the above for the year ended 30 June 2019. Your answer must be supported by legislation, case law and tax rulings (if any).

Question 2 (20 marks)

Jane is a full time university student who works part time in a pizza restaurant. With reference to legal authority, advise Jane on the tax consequences of the following which arose during the 2018-2019 income year:

1. Salary from working in the pizza restaurant of $30,000; 2. Tips from customers of $1,000; 3. A bottle of expensive scotch worth $250 from a regular customer at Christmas time; 4. Jane does not drink scotch. She gave the scotch to her father; 5. A Christmas gift from her grandparents of $15,000 in cash; and 6. Gambling wins of $300 from poker machines located at her local pub.