From the following you are required to calculate Jas’s taxable income (if any) for the
income year ended 30 June 2020, giving brief reasons to support your calculation.
Jas is an Australian resident, adult individual. Jas works as an Associate Professor at the
University of Adelaide and her areas of research include auditing and not-for-profit
During the income year ended 30 June 2020, Jas received and derived the following
1. Wage totalling $140,000 from University of Adelaide from which $40,000 Pay As
You Go tax instalments were withheld.
2. Jas also received a lump sum of $5,000 from the Stephen Cole Elder Award
Foundation for her ‘Excellence in Teaching’ having nominated successfully for
the Stephen Cole Elder Award, however, no PAYG was withheld from the award.
3. Jas was sought out by the Community Council of Australia and received
consultancy fees of $60,000 during the financial year under a short-term contract
(6-month project). Jas was to examine the impact of recently announced
government reform proposals regarding Governance and Reporting for not-forprofit organisations. Jas worked on the project and also hired an assistant for 3
months during the financial year to fast track the project whose efforts were
directly rewarded each fortnight by Jas for a total cost of $20,000.
4. Jas celebrated the consultancy project and went out to dinner and then visited the
Casino for entertainment. Jas was fortunate to win $4,000 playing poker that she
accredited to her keen sense of numbers.
5. Jas received an income distribution of $10,000 from the Jacobson Family trust as
6. Jas received interest totalling $2000 paid into a cash management bank account
held by Jas with the National Australia Bank Ltd, an Australian resident company.
7. Jas received rent of $15,000 from her rental property.
During the income year ended 30 June 2020, Jas paid and incurred the following
outgoings and has kept “written evidence” for each of them:
1. Annual Membership fees of $600 paid to CPA Australia.
2. Relating to her rental property:
a. Repairs of $2,500 to replace a laminate bench (movable) as the old bench
top was chipped and worn. The replacement bench top is made of granite,which is a considerably stronger and more durable surface than the
b. Payments totalling $15,000 for interest on the loan of $300,000 that had
been used by Jas to fund the purchase of the rental property.
c. Payment of Council rates of $1,525, Emergency Services Levy of $260,
Land tax of $265, SA Water supply and usage charges of $1,225 and
House and landlord insurance expense of $670.
3. Jas incurred $400 total for the internet service at home using a monthly plan
paying Internode. The internet was used for her research and private purposes,
which Jas reasonably estimated was on a 50/50 basis.
Question 1 Part 2 (5 marks)
Calculate Jas’ income tax liability or refund for the income year ended 30 June 2020.
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