Angelic Jo is the owner of two businesses in Melbourne. She owns a bakery and several residential rental properties which she rents out to tenants. She is registered for GST for both businesses and operates on a GST cash basis. She has also elected to lodge her business activity statements on a quarterly basis with the ATO.

The following information relates to her two businesses for the quarter ending 30 June 2022. Where applicable, all amounts shown below are inclusive of GST:

Cash receipts	$
Gross proceeds from the sale of wholemeal loaves of bread	60,000
Gross income from residential rent	80,000
Gross proceeds from the sale of mini pizza's	55,000

Cash payments	$
Commercial rent paid to use the bakery	16,500
Plumber hired to fix faulty toilets in the residential rental properties	4,400
University tuition fee for undertaking a Master of Business Law	$3,600

Required: Advise Angelic Jo of her GST obligations for the quarter ending 30 June 2022. In your answer, you must determine whether any GST is payable (and how much) on her receipts and whether she is entitled to any GST input tax credits (and how much) for her payments. You may assume Angelic Jo has received a valid tax invoice for all relevant payments.

Please support your answer with relevant legislation and show any relevant calculations.

You do not need to write anymore than 400 words (a 10% allowance will be allowed, ie up to 440 words). Any response exceeding this word limit will not be read.

Answer rating: 100% (QA)

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