Taylor Svift is an Australian resident taxpayer. The following information relates to the tax year ending 30 June 2023.

1. Taylor graduated with a commerce degree from UWA at the end of 2022 majoring in accounting and business law. Taylor was one of the best students at UWA – she never attended the tavern and always made sure she was well prepared for tutorials. On 1 July 2022, Taylor received a $5,000 scholarship to cover part of her tuition fees in her final semester.
2. Taylor was fortunate to be offered a graduate position in an accounting firm. Taylor started at the accounting firm on 1 January 2023 and continues to work there. Taylor’s salary is $65,000 per annum plus 9.5% compulsory superannuation which her employer pays into her nominated superannuation fund. 
3. One of the partners at the accounting firm was aghast when Taylor came to work on her first day dressed in jeans and a UWA hoodie. The partner explained to Taylor that she was not working for a tech start-up and that more professional attire was required. In addition to her salary, the accounting firm gave Taylor $1,200 on 2 January 2023 to assist her in purchasing more suitable work clothes. 
4. The very next day, Taylor went to Myer and spent $1,500 on new work clothes. As Taylor’s work clothes do no match her personal style, she only ever wears them to work. 
5. In addition to her salary, the accounting firm offered to pay Taylor a $5,000 bonus for her outstanding work. Taylor asked the firm to pay the bonus directly to her aunt, Katy Peary, to whom Taylor owed money. The firm deposited the $5,000 into Katy’s bank account on 30 June 2023. 
6. Although Taylor loves accounting, her real passion is social media. Taylor has amassed over 50 million subscribers on Instagram. Taylor is quite methodical in her approach to her social media activities, she has a business plan which includes targets for new content creation, projected revenue streams and expenses. Taylor’s subscribers are particularly drawn to her fashion and lifestyle posts. Taylor received $20,000 from various companies to post about their products on her Instagram account in the tax year ended 30 June 2023. 
7. Wonderstruck Perfume contacted Taylor through Instagram asking her to promote its new perfume product. Seeing an opportunity to make some extra money, Taylor suggested Wonderstruck pay her $2,000 to make a 2 hour in-person appearance at a shopping centre. Wonderstruck agreed and made the payment on 4 March 2023. 
8. Taylor donated $200 to the RSPCA, for which she is entitled to a deduction under s 30-15 of the Income Tax Assessment Act 1997 (Cth). 

 

Advise Taylor on her income tax position and calculate her overall tax liability for the year ended 30 June 2023.

a) brief introduction that identifies overall method for answering the question and the core tax provisions that render Taylor subject to Australian income tax (focus on Divisions 4 and 6 of the Income Tax Assessment Act 1997 (Cth) and explain the income tax formula).