10%

TUTORIAL PARTICIPATION QUESTION Lulu is the owner and operator of Nails by Lulu, a local nail salon. She also works at TAFE where she teaches evening class in beauty and nail treatments. During the 2018/19 financial year, Lulu reports the following transactions (GST included where applicable): Fees from nail treatments at her salon $375,000 Salary for teaching at TAFE $45,000 Interest received on business bank account $15,000 Payments received from selling plain bottled water (GST-Free) $3,300 Payments received from selling sparkling bottled water (taxable supply) $3,300 She also incurs the following expenses (inclusive of GST where applicable) Nail polishes and acrylics $27,500 Bottled water (plain) to sell to customers $550 Bottled water (sparkling) to sell to customers $550 Computer for private use $1,650 Wages (1 x employee) $25,000 (a) Calculate the GST payable on supplies for the 2018/19 income year (b) Calculate the GST tax credits on for the 2018/19 income year (c) What is Lulu's net GST liability for the 2018/19 income year