HI6028 Taxation Theory, Practice and Law Individual Assignment T1 2025

HI6028 Instructions

Academic Integrity Information

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Format Instructions

• Most assessments must be in MS Word format with no spacing, 11-pt Calibri font and at least 2cm margins on all four sides with appropriate section headings and page numbers.
• You must name your file with the Unit Code and Student ID (e.g. "HI6028- GWA1995").
• Check that you submit the correct document, as special consideration is not granted if you make a mistake.
• Student ID needs to be indicated on the cover page.

Penalties

• All work must be submitted on Blackboard by the due date and time, along with a completed Assessment Cover Page. Late penalties apply.
• Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Holmes Institute Adapted Harvard Referencing. Penalties are associated with incorrect citation and referencing. 

HI6028 Question 1

After completion of your Master of Professional Accounting, you have joined with an accounting firm called Access Accounting and Tax Services Pty Ltd, Brisbane, QLD. Your client, Sunaina, owns a restaurant in Brisbane from 4th July 2023. The business is known as the 'Homely Restaurant' and Sunaina has an ABN, a registered business name and is also registered for GST. Sunaina has other investment income which she owns herself, and she works as part-time and earns a salary as well. The following figures are as at the end of the financial year, 30 June 2024 and do not include GST. (Do not make any adjustments for GST) 

Receipts 

6,500           Interest on Bank deposits 
223,700       Income from food sales 
62,500         Rent from her investment property
 6,240          Refund from the ATO for last year's tax return 
21,700          Lottery win 

Payments 

96,000    Rent for her restaurant 'Homely Restaurant'
3,400       Body Corporate fees on income-producing property. 
152,000   Employees' salaries 
20,600     Superannuation contribution for employees 
3,500       Fees paid to a registered Tax Agent 
2,000       Travel to and from work to home 

Please advise Sunaina on above above-stated transaction with statutory and common law provisions and calculate correctly. (14 Marks) 

Additionally

• Her Taxable Salary earned is $111,000 (Including tax withheld).
• She does not have private health insurance.
• She is a resident taxpayer.
• Sunaina has an outstanding student loan of $46,000 from her studies at Melbourne University.
• She has $2100 in expenses, which she paid for advanced chef training.
• Sunaina's employer paid a superannuation guarantee charge of 12.5% on top of her salary to her nominated fund.

HI6028 Question 2

Sunaina's Restaurant Business has installed many machines during the current income year. The following transactions took place: her business undertook the following transactions: 

• On 1 December, she purchased a new dishwasher machine for $15,000. The Commissioner has determined the effective life of dishwashers to be 8 years.
• On 27 April, she installed a new kitchen exhaust fan. The cost of the fan was $1,100, with an additional installation cost of $500. The effective life of kitchen exhaust fans is assessed as 5 years.
• On 1 February, a new ducted vacuum cleaner was installed in the business premises at a cost of $5,000. 

The Commissioner has assessed the effective life of residential ducted vacuum cleaners as 10 years. Assume that no immediate deduction is available for any of the assets.

Required:

Advise Sunaina of the tax consequences arising from the above transactions for the current income year under both the diminishing value method and the prime cost method, as applicable. Show relevant calculations where necessary.