Jean Johnson is a 60 year old employee who recently retired from Koles at Phillippa Island. She has engaged you
for your services to assist her in preparation of her tax return for 2018/19. On 29 August 2019 Jean sent you the following email:
From Jean Johnson Sent : 29 August 2019, 9:00:52 AM
To : Tax Accountant
Subject : Tax Return 2018/19 - Jean Johnson
Dear Tax Accounting Team,
As discussed, here are the following matters that should help you with the preparation of my tax return.
- Earnings from Koles - I retired from Koles on 30 June 2019. As store manager, I received $80,000 from Koles in net wages after my employer had deducted $24,000 PAYG. I also received an entertainment allowance of $10,000 which I fully spent on entertaining clients, particularly engaging new clientele (I have kept my receipts and can substantiate the deductions). My unused Annual Leave ($5,000) and Unused Long Service Leave ($5,000) was paid to me on 30 June 2019. On my last day, the regional manager gave me a brand new i-Phone valued at $1,000 (silly - they left the Apple store price on it) which was a lovely way to remember the 30 years I have worked loyally for Koles. What was even more surprising was the other gift I received from the staff, who gave me a travel and accommodation voucher valued at $1,000. I am just so blessed to have made so many nice friends over the years.
- Further benefits from Koles - What was really wonderful, was to receive another $100,000 from Koles which Iwasn't expecting. I had worked in a senior position for so many years. It was explained to me that I got this money as a $10,000 one off amount followed up with $3,000 for each year of service. What a wonderful employer. With all the interstate travel I had to do for Koles, my flights, amassed 100,000 Qantas Frequent Flyer points that I used to travel to Bali, and it saved me $1,500 when taking a Business class ticket.
- Investment earnings - I received $500 from the bank interest and my BHP fully franked dividends $14,000 were a real blessing as I was in a tight spot paying for my new car.
- Marriage celebrant fees - I guess I have to declare that I conducted 3 marriage ceremonies this year and I solemnised my best friend's daughter, my niece and my nephew. You know of course I don't advertise for thisservice but they all insisted in giving me a reward for my personal services. I told them the money was not important and I loved doing it from my heart, but they insisted, and surprisingly, each party generously gave me $200.
- Bingo winnings and TAB Account - When I was at the RSL in June 2019, I was delighted to win a $1,000 playing bingo that night - such a surprise as I have never won like that before. But what has been really great is that I have won $50,000 in 2018/19 - I just love watching the ponies, it is so exciting. I limit myself to a betting only one day each week and I did really well - although some weeks were not so good - I really bombed out. But I received a good tip one week and won $25,000 on a trifecta!
- Settlement proceeds - Last week, I finally got the $10,000 from my neighbour to compensate for the stress he made to me as he built the fence on my side of the property. But I didn't enjoy the money very long as It cost me$8,000 in legal fees to defend my title, but it was worth it as I now have a much easier path on the side of the house. Now with the fence moved over half a metre, I can walk the path without my rubbish bin colliding on the wall.
- Superannuation payment - I took out $50,000 from Koles Super - my employer sponsored superannuation fund, just after my 60th birthday and electronically transferred that to my mum in England. My neighbour said I have to include my super monies as income - is that right?
8.Sale of my residence - Settlement has finally come through on the sale of my house. Hooray. You will recall that I purchased my home in 2009 at a cost of $500,000 and $25,000 for various expenses such as stamp duty and other fees and I sold it for $1,000,000 by contract on 1 May 2019 and there were another $25,000 expenses on sale for commission and other expenses. You might remember I spent a year overseas on holidays (1 July 2015 - 30 June 2016) and during that time I rented out my property.
9.Sale of my personal things - As I am off to take care of my mum next month, I sold nearly all of my personal home assets in the last weekend of June 2019 in a garage sale for $11,000. I was really successful and my neighbour's son who is an accounting student said I have to declare that as income as it was more than $10,000.
10. Work expenses - I spent a lot of money looking professional as I didn't wear a uniform like the rest of my staff. My grooming expenses totalling $4,000. $3,000 was for hair styling and cutting (very good really as I was a regular customer every week at my hairdresser), make-up was only $1000. I also bought additional clothing I had to wear suits that were not cheap - another $5,000 which my Regional Manager thought was very professional.
11.Car expenses - The running costs on my car as advised by my local petrol station amounted to $10,000 for the year, but these were paid for by Koles, even though I only used the car 50% for business use. I bought my new car at the start of the year costing $20,000 and I would like to claim the entire amount as a deduction, as I heard I can claim an instant write off. Regrettably I had a slight accident to my new car which caused me out of pocket expenses of $2,000 to repair the vehicle. My other car I used to use was involved in an accident late in June 2018, and you might remember how quickly I got $20,000 on 30 June 2018 from the insurance company as compensation for my car crash that decimated my car.
That's all I can think of for the moment - let me know if you need more information. But please tell me straight up, how much tax do I owe?
Thanking you in advance Kind Regards
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