Your client, Jill White owns a restaurant in Brisbane. She operates as a sole trader. The business is known as The Spaghetti Bar and Jill has an ABN and is also registered for GST. The following figures are as at the end of the financial year, 30 June 2023 and do not include GST. (Do not make any adjustments for GST)

Receipts

765,000Sale of food and drinks in the restaurant

37,392Sale of trademarked spaghetti products sold overseas.

25,000Royalty payment for use of trademark spaghetti products.

7,000Interest on Bank deposits.

12,000Exempt income from the Commonwealth Government Trade show

2,500Private Health fund refunds

150,000Inheritance from her grandmother

34,500Rent from investment property

Payments

28,000Rent on her restaurant in Brisbane

1,500Body Corporate fees on income producing property.

165,000Part-time employee salaries

24,000 Superannuation contribution for employees

25,000Interest on borrowing to purchase the income producing property

7,560 Insurance, body corporate fees and land tax for the investment property

2,100Fees paid to a registered Tax Agent

30,000New cooking equipment with an estimated life of 10 years

8,000Travel to and from work to home

2,789Rates on her principal residence

2,436Doctors fees for Jill and her family

3,265Cooking course fees for Jills employee

17,521Superannuation contribution for Jill

(a) Jill White is accounting for her taxation liability as a Small Business Entity (SBE)

(b) On 1 July 2022 the opening depreciation pool balance for the SBE pool was $76,000. During the year Jill purchased 1 new depreciating assets used 100% for business purposes in the restaurant kitchen. This is recorded in the payments information listed above. The depreciation deduction has not been included in the above figures.

(c) Jill has a carry forward tax loss from an earlier income year of $45,000. This was due to the impact of COVID 19 on her business.

(d) Jill and her family are members of a private health fund and have private hospital insurance.

(e) Jill has paid $14,356 in PAYG Instalments during the financial year ending 30 June 2023.

(f) The investment apartment was purchased new on 1 July 2022 for a total cost of $650,000 and is part of a hotel complex in Brisbane. The real estate agent advised Jill that the construction cost of the apartment was $365,000 and this was confirmed by the builder.

REQUIRED

Calculate Jills personal tax liability for the year ended 30 June 2023. You should explain your treatment of each item in this question. Figures must be rounded to the nearest dollarand do not include cents in your calculations.

Your answer should be in the correct format of Assessable Income less Allowable Deductions. This gives you Taxable Income and you multiply this by the different marginal tax rates plus Medicare levy. This gives you tax payable less any tax offsets. The terms Payments and Receipts are not part of the Tax Formula and are not appropriate for taxation accounting.