Reference no: EM133553267

Case Study: Maggie is a medical specialist, who tests for COVID-19 virus in samples sent by COVID testing sites from all over Victoria. During the current tax year, Maggie received $85,000 in net wages ($35,000 in PAYG was withheld). Maggie also earned $2,000 on interest from a term deposit and $5,000 from a lottery win. As part of her employment arrangements, Maggie's employer provides her with a protective coat to be used when she is in the laboratory. Occasionally, Maggie works late if the lab-work task is not completed on time. When this occurs, Maggie takes an Uber (ride-sourcing service) home, which is then reimbursed by her employer. Her employer has also provided Maggie with an interest-free loan. Currently, Maggie has made use of this facility to pay for specialist training on vaccinations, which cost $2,500 (an allowable deduction). Maggie had borrowed the funds on 1 July 2022 and will repay the debt by the 30 June 2023.

Maggie also sold shares, which she had purchased in January 2010 for $13,000, paying an additional $1,000 in brokerage fees. Maggie received $45,500 for the sale on the 3 July 2023, with the contract being signed on 26 June 2023. However, she paid $3,000 in brokerage fees, which reduced the amount she received to $42,500. Maggie has a carried forward loss of $1,000 relating to the sale of a collectable in a prior year.

Maggie is an Australian resident for tax purposes, does not have private health insurance and is single with no children. Maggie has a higher education debt remaining of $8,350.

REQUIRED: Determine the Australian income tax consequences of the above fact situation for the year ending 30 June 2023 by answering the following question set. In doing so, you must show a completeanalysis to be awarded full marks, including references to appropriate sources of tax law, presenting all workings and/or explanations and identifying all relevant elements to support your analysis.

Question 1:

Calculate Maggie's net capital gain (loss).

Question 2:

Calculate Maggie's taxable income, briefly explaining each line item.

Question 3:

Calculate Maggie's net income tax payable (refund).