QUESTION 1:

Advise your client on how the following items will be treated for tax purposes under Australian tax law:

i. Webjet frequent flyer points received by a business analyst employed by a large business consultancy firm in relation to work related travel paid for by the firm

ii. Amounts received by a crane hire company from its customers for a damaged crane

iii. A free overseas holiday received by a nightclub manager from an alcohol supplier

iv. The return to its members of excess funds raised by a canoe club for the purchase of additional canoes

v. A payment made by a television station to an Australian footballer for being named the best and fairest in the AFL

vi. Expenses relating to a building qualification for a building apprentice

vii. Expenses relating to a short course in art management in the hope of becoming an art director

viii. Expenses relating to work make-up and work dresses

ix. Expenses relating to travel between home and office

x. Expenses relating to travel between one employer and another employer

QUESTION 2:

Manpreet is an international student studying an accounting degree at CQU, Sydney. She commenced her studies in term 1, 2016. In the 2016/2017 financial year she worked part time as an office assistant at an Accountant's office to gain work experience in her chosen career and made $45,000 from that job. Manpreet also received $20,000 from her parents to assist her with her living expenses, and a $10,000 distribution from a trust account set up in India by her grandmother of which she paid $1,000 in foreign tax. She spent $18,500 on her studies, $2,000 on a computer and printer for educational purposes, and $500 on a new mobile which was required for work purposes.

Calculate Manpreet's net tax payable for the 2016/2017 financial year, making reference to the taxation formula, the reasons for including or excluding specific items, your calculations, and the applicable tax law (sections of legislation and/or case law).