Question 1

She also wants to give $15,000 to her long-term secretary who is retiring this month. I understand that they have worked together for several years and that she has been a great personal confidante of Ms. Van de Stadt. The payment is intended to be a thank you for her loyal friendship, this is highly unusual as she has never previously given a non-performance related bonus to an employee. Does Ms. Van de Stadt wonder whether her secretary will be assessed on this payment? (Ignore any FBT consequences)

Issue

Whether her secretary will have the $15,000 assessed as ordinary income under section 6-5?

Question 2

Ms. Van de Stadt has also recently sold her house in Toorak Gardens. She bought the home on 1 February 1996 for $500,000 and sold for $1.5 million in February of this year. She and her family have lived in this home continuously except for the period between 1 July 1998 and 1 July 2006, where the property was leased to tenants whist, she was heading up the new VDSE factory in Perth.

Issue

What are the Capital Gains Tax Consequences arising from the sale of the house in Toorak Gardens / will the main residence exemption apply?