Question 2 (16 Marks) Ms Tracy Tan an Australian who after ten years working for the Department of Trade in Melbourne took a job in Vanuatu three years ago on 1st July 2017, as Trade liaison officer with the Australian High Commission in Vanuatu. She has retuned on 30th June, 2020. Before leaving Tracy lived with her mother in a house owned by her mother. Tracy has returned to that house to live. Tracy tells you the following: She has a group certificate from the Department of Trade of the Commonwealth of Australia (DT)for the year 2019/2020 showing that she earned $70,000 on which her employer, the DT deducted $14,670. She worked part time at a weekend coaching school in Vanuatu coaching children in English. She was paid $2,500 for this work. Vanuatu does not have taxation of individuals. She also received a transfer allowance from the DT to move back to Australia that amounted to $2564. Her airfare and the cost of taxis and freight on her personal effects came to $2,664. She earned $3500 in fully franked dividends from Australian Listed Public Companies. She earned $500 in an unfranked dividend from one Australian Listed Public Company. When she returned to Australia, she sold a sports car she had put on blocks when she left. The car had cost her $5000 in 2010, and when she sold it, she received $6,500 for it. On 20th June, 2020, she sold for $10,000 a block of shares that she had purchased in 2014 for $12,000. Tracy asks you to advise her on her tax situation for the 2019/2020 tax year.

Required: (please refer Australian Tax law Thank you)

(a) Draw up a table showing the tax effect of these transaction, and calculating Tracys tax liability or refund based on her being a resident. (7 x 1 = 7 Marks)

(b) Draw up a table showing the tax effect of these transactions and calculating Tracys tax liability or refund based on her being a non resident. (7 x 1 = 7 Marks)

(c) Advise Tracy as to which situation (resident or non resident) would apply to her. Give reasons.