Ying is an elite athlete, having represented Australia in gymnastics at the last two Olympics.

Ying wants to commence a business importing gym equipment from overseas. First, she

had to negotiate with the manufacturers to obtain stock for her business.

Ying incurs a parking fine of $$300$ attending a meeting with a manufacturer in California.

Ying entered into an agreement with FitnessMe, a manufacturer located in New York, to be

the Australian distributor of the FitnessMe brand of gym equipment for a period of $10$ years,

in return for a payment of $$1\mathrm{.}2$m$.$ The payment was made on $30$ June $2021.$ Ying made her

first sales of gym equipment in mid$-$August $2021.$

In May $2022,$ she engaged Hank, a customs agent located in the US$,$ for a fee of $$800$ per

shipment, to help her negotiate with the US Customs service regarding the export of

individual shipments from the US to Australia. The fee was $30\%$ higher than the standard

fee payable for the type of work Hank did in the US$.$ Hank was her brother.

Required:

Using relevant legislation and case law, explain to Ying whether the above outgoings are

deductible under section $8-1$ of the ITAA $1997,$ and in what income yea