Sarah Zhou is a junior manager with a global investment bank based in Sydney Australia. Sarah has to

travel frequently for her work but she has also some significant side interests that the global investment

bank lets her spend some time on$.$ As a member of generation Z$,$ Sarah knows she has to develop her

talents and business interests if she wants to buy a house in Sydney.

In particular Sarah is a frequent contestant on quiz shows. Last night Sarah won $$994,000$ on the

Australian television show Master Brain, bringing her total winnings to close to $$1,100,000$ for the

$2023$ income year.

Sarah had her first success $3$ years ago when she won $$100$ in a high school quiz show. Two years ago

she hit the big time when she won a new Tesla car valued at $$65,000.$ This year, Sarah was invited to

appear in another show the Champion of Champions, in which the winner receives $$200,000.$ Sarah

won, and decided to enter Master Brain for the grand prize of $$994,000$ the only show she had never

entered. The other contestants, members of the public picked at random had no chance against Sarah

and Sarah won the $$994,000$ prize.

Sarah also has a company called Clothco Pty Ltd $($Clothco$)$ selling imported clothing by wholesale and

Clothco holds $12$ valuable import quotas which permit it to import stock like Ralph Lauren and

Tommy Hilfiger. Clothco wishes to restructure its business and for that purpose, sells two of its quotas

at a profit. To obtain additional funding for its restructuring, Clothco enters into an arrangement under

which shares in Clothco's subsidiaries are sold to an associate for $$500,000,$ that amount is lent to

another subsidiary Stooge Pty Ltd $($Stooge$)$ and later the right to receive the unpaid interest instalments

from Stooge is assigned to by Clothco to a finance company $($MoneyBags Pty Ltd$)$ in return for a lump

sum payment of $$300,000.$

Clothco and Money Bags are not related, the transactions outlined above were not interrelated and in

particular Money Bags agreement to take the assignment of the unpaid interest in instalments is purely

on commercial grounds.

Sarah has enrolled in a Masters of Professional Accounting for her work for the Global Investment

Bank. As part of the course work she has to travel to Singapore for a groupwork assessment with other

students working on paper relating to risks in start ups in Asia. As part of the travel she incurs $$3,000$

in airfares and $$2,000$ in accommodation and she is only travelling for the course not personal reasons.

$*$All amounts are in Australian dollars $($$AU$).$

Question $1-$ Advise Sarah on the assessability of the $$1,100,000$ of prize money for the $2023$ income year. $($Please state any Australina Tax laws and Cases in Answer$)$