Statement of Advice 3 Advice on net capital gains (10 marks for technical and calculation accuracy; refer to marking rubric for more guidance.) Since 1997 John and Julia have invested in various Australian shares. Julia acquired the shares in her own name whereas John had his company Smart Solutions Pty Ltd acquire his share portfolio. On 29 June 2022 both Julia and John made a decision to dispose of their Australian shares and the proceeds and purchase prices information are as follows. Julias share portfolio Shares Purchase date Costs Proceeds Mega Mining Ltd 1 April 1997 $8,000 $12,400 Global Media Ltd 10 June 2000 $15,000 $90,000 Watson Tel Ltd 17 May 2013 $34,000 $33,500 Qantas Ltd 8 January 2022 $17,900 $21,000 Smart Solutions Pty Ltd share portfolio Shares Purchase date Costs Proceeds Xero Ltd 28 March 2018 $45,000 $62,000 Qantas Ltd 26 June 2022 $21,600 $28,800 Other information Julia has a capital loss of $600 carried forward from sale of painting during 2018.

Required 1) Advise both Julia and John on the CGT consequences of their share sales.

2) Calculate net capital gains for the 2021/22 tax year. You must provide all methods available for her and choose the best method to minimise net capital gains for Julia and John (Smart Solutions Pty Ltd)