James, a resident Australian taxpayer, has a Bachelor of Laws degree and worked as a solicitor in

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Question:

James, a resident Australian taxpayer, has a Bachelor of Laws degree and worked as a solicitor in Sydney since 2014. With the ongoing COVID-19 pandemic and the fact that most of his family are in Melbourne, James decided during the financial year that he wanted to leave Sydney. In November 2021, he flew from Sydney to Melbourne to attend an interview for a Solicitor position at a firm called ABC Lawyers Pty Ltd, to be a part of their Human Rights division. In December 2021, James was notified that he was successful in getting the position so at the end of January 2022 he re-located to Melbourne.

James stayed with his parents for the first month that he was in Melbourne but then moved out into his own 2-bedroom flat on 5 March 2022, which he rents at a cost of $400 per week. He was required to pay a bond of $1,600 and electricity and gas connection fee of $300.

In April 2022, James leased a new laptop which he uses to undertake an online course and do client work from home when necessary. He kept a record of usage during the year and found that the laptop was used 40% for his study, 20% of the time for work-related purposes and the balance was for private use.

In addition to the laptop, James also has a mobile phone that was used 10% of the time for work purposes. His internet use at home is estimated to be in the same proportion as his laptop use.

Whilst still living in Sydney, James was required to work from home for the period from 1 July 2021 to 31 October 2021 due to COVID-19. His timesheets for the period showed that he worked 580 hours during this time at home. He was supplied with everything necessary by his former employer to be able to work remotely.

During the year ended 30 June 2022, James had records of the following receipts and payments:

Gross salary from Sydney law firm - July to January 2022 (PAYG withheld $16,000)	$62,000
Gross salary from Melbourne law firm - February to June 2022 (PAYG withheld $17,000)	$58,000
Interest on savings account	$60
Fully franked dividend from Westpac Bank	$2,200
Membership to the Law Society of New South Wales	$980
Membership to the Law Institute of Victoria	$800
Airfares Sydney to Melbourne return to attend the job interview	$220
Taxi fares from Melbourne airport to law firm office and return to the airport	$90
Enrolment fees for online Human Rights certificate (2-year course)	$2,300
Laptop lease payment per month	$180
Mobile phone monthly payment	$120
Internet connection monthly fee	$90
Purchase of navy suits to wear to work	$600
Purchase of new leather shoes to wear to work	$140
Dry cleaning of suits	$860
Annual train fares to travel from home to work daily (return fares)	$1,780
Fuel cost to attend a workshop for his Human Rights course (500km round trip)	$50
Purchase of a second-hand desk to use in his home office (6 March 2022)	$260
Purchase of a chair to use in his home office (7 March 2022)	$150

Required:

Assume you are the Accountant for James, and he has provided you with the above information during his annual interview for the preparation of his 2022 income tax return.

1. calculate James taxable income for the year ended 30 June 2022. You should include workings where relevant and details of why amounts are included or excluded from the calculation. Also, advise of any additional information or clarification you would have obtained from James to ensure the accuracy of the taxable income.