Stacey was born and raised in Cairns in Queensland. Her mother was born in Brisbane and her father was born in Cairns. She moved to Brisbane to attend University in 2010, and graduated with a Bachelor of Commerce/Bachelor of Laws degree from the University of Queensland in December 2014.

In 2010, Stacey had inherited a large sum of money from her great Aunt. When she moved to Brisbane, Stacey used part of her inheritance to buy a house in Wishart (the contract was signed in January 2010 and settlement occurred 1 month later). The purchase price was $800,000 and she received an exemption from stamp duty as it was her first home purchase. Stacey used the rest of her inheritance to buy some rural (vacant) land on the outskirts of Brisbane. The contract was signed on 1 March 2010. The purchase price was $450,000 and stamp duty of $13,500 was also payable. Stacey incurred $2,000 in legal fees in connection with the purchase. She hoped to grow fresh produce (vegetables and fruits) on the land one day.

During 2015, Stacey worked in an accounting firm in the Brisbane CBD. Then at the end of June 2016, she obtained a transfer to the firms London office. She travelled to London on a five year ancestry visa (her Grandmother was born in England), arriving on 1 July 2016. Just before she left Australia, Stacey told her family and friends that she intended to live and work in England for several years but would eventually come back to Australia.

Stacey worked in the London CBD from July 2016 to the end of June 2017. She lived close to her work in an apartment that she shared with her friend from Australia. Both Stacey and her friend were co-tenants under the lease. Stacey resigned from her London employment at the end of June 2017. At this time, Stacey decided that she would try to write a crime novel. Stacey planned to use her savings to live in picturesque University towns in England which she thought would provide the perfect inspiration for her novel. From 1 July 2017 to 31 March 2018, Stacey leased a small cottage in Oxford and then lived in Cambridge, where she rented a one bedroom apartment from 1 April 2018 to 31 December 2018. Since 1 January 2019 Stacey has lived in a seaside cottage in Southampton.

Staceys Wishart house was leased to tenants soon after she moved to England in mid-2016. In the period from 1 July 2018 to 30 June 2019, Stacey received $3,000 rent per month. Stacey also had to pay council rates on the property: $300 in September 2018 and further $300 payments in December 2018, March 2019 and June 2019. Her sister Agnes has been dealing with the tenants and attending to all administrative matters concerning the property.

During 2019 Stacey realised that she would need to sell her rural land if she wanted to continue enjoying a comfortable lifestyle in England. On 30 June 2019, Stacey entered into a contract to sell the land. Her sister acted as her agent in relation to the sale. The contract price was $600,000 and settlement took place on 31 July 2019. Advertising expenses in connection with the sale were $500 and $1,500 was incurred in legal fees. The land had been vacant during the whole period of her ownership (and no vegetables or fruits were ever grown on the land).

On 4 June 2019, Stacey sold 100 shares in Commonwealth Bank Ltd (an ASX listed company) for a price of $80.00 per share. She incurred $20 brokerage on this sale. She had bought these in 1 October 2018 for $66.00 per share and $20 brokerage was incurred on the purchase.

INSTRUCTIONS:

1. What is Staceys taxable income in Australia (if any) in 2018/2019? Outline all your reasons. Provide explanations and cite relevant law;
2. Calculate Staceys final tax liability (if any) under Australian tax law in 2018/2019. Assume that Stacey has maintained top-level private health insurance in Australia (as she prefers to use the Australian healthcare system if she needs any substantial medical treatment at any point).