Rita (aged 57 years) is a financial planner employed by a large financial planning firm Perth. For the income year ended 30 June 2023, Rita's employer provided her with a PAYG payment summary, which included the following information:

 

Gross salary                                                                      $89,000

 

Allowance                                                                           $2,000

 

Total tax withheld (PAYG credits)                                    $18,800

 

As a certified financial planner, Rita is a member of the Financial Advice Association of Australia. She has paid her $990 (including GST) membership dues for the 202/23 income year.

 

Rita purchased a laptop computer on 15 July 2022, which she reliably estimates that she used 60% for work purposes. The computer cost Rita $2,200 (including GST) and she first used it on 16 July 2022, and it has an effective life of 3 years.

 

In the 2022/23 income year, Rita's employer provided her with a clothing allowance of $2,000 (see PAYG payment summary information above), which enabled her to buy new clothing, that she only wore to work, during the tax year. Rita's total expenditure on work related clothing during the 2022/23 year was $2,900. The clothing she purchased was office attire, including shoes, that was suitable for her profession as a financial planner and it did not in any way identify her as an employee of the firm where she worked. Rita also spent $440 (including GST) on the dry cleaning of her office attire and she has retained the receipts for these expenses.

 

            In addition to the above, Rita had the following transactions:

 

Shares On 5 December 2018, Rita signed a contract to purchase 40,000 shares in Qantas for $228,000, and the ownership of the shares was transferred to her on 9 December 2018. At the time of purchase, Rita paid $550 (including GST) in brokerage fees in relation to buying the shares. On 5 December 2018, Rita paid borrowing costs of $1,650 (including GST) to establish an investment loan of $200,000 that was for the purpose of purchasing the Qantas shares. The interest incurred on the loan to date is $62,000, with $13,000 of this interest relating to the 2022/23 tax year.

Rita became concerned about the rising interest costs on her interest-only investment loan and decided to sell all the Qantas shares and pay out the loan balance. Rita sold the shares for $258,000, under a contract dates 2 June 2023 and the ownership of the shares transferred on 5 July 2023. The brokerage fee on the sale of the shares was $600 (including GST).

 

Other information:

As at 1 July 2022, Rita had carried forward capital losses of $7,500 from the sale of shares in prior tax years and a capital loss carried forward of $2,000 from the sale of a painting.

On 29 June 2023, Rita donated to a deductible gift recipient. She was provided with a valid receipt and did not receive anything in return for the donation.

Rita is an Australian tax resident for the entire 2022/23 year and she has never had any private health insurance.

Required

In relation to the above facts, calculate Rita's net capital gain for the year ended 30 June 2023. Your answer should include workings and explanations for each applicable step as well as references to relevant sections of the ITAA97.   [8 marks]

Calculate Rita's income tax payable for the year ended 30 June 2023. Provide explanations for items included in and excluded from the calculation and refer to relevant sources of law where appropriate.