Anita is a lecturer at Docklands University and teaches accounting. In the income year 2021-22, she receives $115,000 from the university. Anita also runs an accounting and tax consultancy business and, during 2021-22, invoices $90,000 to clients. In the same financial year, Anita also receives a property income of $40,000 from renting a residential property.

On 1 March 2022, Anita sells her old furniture used at the consultancy business for $2,000. On 10 March 2022, Anita purchases a laptop and a printer priced at $4,400 (incl GST). Anita uses the computer and printer approximately half of the time for the university work and one-fourth each for consultancy business and rented property.

Required: 

Advise Anita of the GST consequences on her receipts and expenses. Also, briefly identify which of Anita's receipts would constitute ordinary income? (Disregard expenses for income tax purposes) Your answers must be supported with relevant legislation and case law.

Answer rating: 100% (QA)

GST Consequences on Anitas Receipts and Expenses A GST on Receipts 1 Salary from Docklands Universit... View the full answer