QUESTION

Bruce Lee is a Lawyer with his own legal practice and registered for GST His receipts and payments (not including GST) for the year ended 30 June 2018 are as follows:

Receipts

$

340,000 Professional legal fees

8,000 Income from part-time military service (note 1)

7,000 Dividends received from an Australian resident company fully franked

34,000 Salary received from part-time lecturing at the University

($6,000 in PAYG W)

5,000 Interest on Bank Deposits

10,000 Rental income from an investment property

Payments

$

14,000 Office rent

10,000 Payment to the cleaning contractor

50,000 Salary paid to employee secretary

290 Purchase of new calculator

1,400 Cost of meals and entertainment for himself and clients

1,200 Train fares for travel to and from work

2,200 Rates on family home

900 Electricity for family home

1,000 Tax agents fees for preparing tax returns for 2016/2017

2,000 Rates paid on abovementioned investment property

15,000 Interest paid on loan to acquire the investment property

5,000 Cost of painting the investment property immediately after purchasing the property

1,000 Cost of replacing roof tiles on the investment property after the roof was damaged in a severe storm in February 2018

15,000 Cost of extending the bathroom in the investment property

Notes

The part-time military income is exempt.

Bruce has a carry forward past year tax loss of $12,000.

Bruce does not have private hospital insurance.

REQUIRED

Bruce would like to minimise his tax liability for the year. Calculate Bruces tax liability for the year ended 30 June 2018.