For many years, Heather has been employed as a social worker and has also made some money
Question:
For many years, Heather has been employed as a social worker and has also made some money ($80,000 in 2020/21) from selling personal goods on Amazon. The goods that she sold were either hers or belonged to other family members. Heather occasionally works as a waitress in a local restaurant on weekends. She is paid $60 an hour but earns more than that in tips from customers. Heather also works as a private teacher and charges a flat fee totaling $50 for each session. She receives her income in cash and cryptocurrency.
Heather has also written and published a book that gives suggestions on selling personal goods over the internet and Heather sold each book for $60. Heather is paid ten cents for each time the book is borrowed from libraries in Australia and receives $5,000 in total for 2020/21. The book was a great success and a large publishing company paid Heather $900,000 in June 2021 to purchase the copyright in the book. Heather traded shares 10 times during the year and reported a profit of $180,000. Prior to trading, we went to a share trading seminar and followed a professional trader’s advice.
Explain how Heather is likely to be taxed on her employment income, the sales of personal goods, income from her restaurant work, private teaching, sales of her book, the amount received when the book is borrowed, the sum received from the publishing company, and share trading.
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0132164429
4th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer