Please discuss the questions from the Australia taxation perspective and prima facie a) will be on FBT and b) could have income tax implications.
Also please quote any legislations from FBT act or ITAA 1997 to support the analysis.

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Mary Fowler, the taxpayer referred to in Question 1 works part time as a marketing consultant with HINA Organic Skincare of Australia Pty Ltd (HINA). The company is a resident of Australia for tax purposes and is registered for GST. HINA Australia buys organic skincare products from its New Zealand parent entity and sells them to the public at HINA stores all over Australia. Mary's part-time salary is based on a base annual salary, excluding fringe benefits, of $90,000. Your task: Advise both HINA Australia and Mary as to the tax consequences of the events below. Where appropriate, tax calculations that arises from, and referable only to those events should be made. (a) To encourage staff to keep up-to-date with developments in new skincare products, staff are provided, under a staff plan, with a 30% discount on the retail price of any products sold by HINA. During the year, Mary spent $1,500 on skincare products under the staff plan. Assume that HINA has a 25% mark- up on the products it sells to the public. (b) Mary's employer required her to travel interstate regularly to launch new products and special events at HINA stores. As a result, Mary accumulated a lot of Qantas reward points. After quitting her employment to travel around Australia, Mary redeemed 200,000 points for hotel accommodations in Sydney and Perth which was normally valued at $1,500. Mary Fowler, the taxpayer referred to in Question 1 works part time as a marketing consultant with HINA Organic Skincare of Australia Pty Ltd (HINA). The company is a resident of Australia for tax purposes and is registered for GST. HINA Australia buys organic skincare products from its New Zealand parent entity and sells them to the public at HINA stores all over Australia. Mary's part-time salary is based on a base annual salary, excluding fringe benefits, of $90,000. Your task: Advise both HINA Australia and Mary as to the tax consequences of the events below. Where appropriate, tax calculations that arises from, and referable only to those events should be made. (a) To encourage staff to keep up-to-date with developments in new skincare products, staff are provided, under a staff plan, with a 30% discount on the retail price of any products sold by HINA. During the year, Mary spent $1,500 on skincare products under the staff plan. Assume that HINA has a 25% mark- up on the products it sells to the public. (b) Mary's employer required her to travel interstate regularly to launch new products and special events at HINA stores. As a result, Mary accumulated a lot of Qantas reward points. After quitting her employment to travel around Australia, Mary redeemed 200,000 points for hotel accommodations in Sydney and Perth which was normally valued at $1,500. Mary Fowler, the taxpayer referred to in Question 1 works part time as a marketing consultant with HINA Organic Skincare of Australia Pty Ltd (HINA). The company is a resident of Australia for tax purposes and is registered for GST. HINA Australia buys organic skincare products from its New Zealand parent entity and sells them to the public at HINA stores all over Australia. Mary's part-time salary is based on a base annual salary, excluding fringe benefits, of $90,000. Your task: Advise both HINA Australia and Mary as to the tax consequences of the events below. Where appropriate, tax calculations that arises from, and referable only to those events should be made. (a) To encourage staff to keep up-to-date with developments in new skincare products, staff are provided, under a staff plan, with a 30% discount on the retail price of any products sold by HINA. During the year, Mary spent $1,500 on skincare products under the staff plan. Assume that HINA has a 25% mark- up on the products it sells to the public. (b) Mary's employer required her to travel interstate regularly to launch new products and special events at HINA stores. As a result, Mary accumulated a lot of Qantas reward points. After quitting her employment to travel around Australia, Mary redeemed 200,000 points for hotel accommodations in Sydney and Perth which was normally valued at $1,500. Mary Fowler, the taxpayer referred to in Question 1 works part time as a marketing consultant with HINA Organic Skincare of Australia Pty Ltd (HINA). The company is a resident of Australia for tax purposes and is registered for GST. HINA Australia buys organic skincare products from its New Zealand parent entity and sells them to the public at HINA stores all over Australia. Mary's part-time salary is based on a base annual salary, excluding fringe benefits, of $90,000. Your task: Advise both HINA Australia and Mary as to the tax consequences of the events below. Where appropriate, tax calculations that arises from, and referable only to those events should be made. (a) To encourage staff to keep up-to-date with developments in new skincare products, staff are provided, under a staff plan, with a 30% discount on the retail price of any products sold by HINA. During the year, Mary spent $1,500 on skincare products under the staff plan. Assume that HINA has a 25% mark- up on the products it sells to the public. (b) Mary's employer required her to travel interstate regularly to launch new products and special events at HINA stores. As a result, Mary accumulated a lot of Qantas reward points. After quitting her employment to travel around Australia, Mary redeemed 200,000 points for hotel accommodations in Sydney and Perth which was normally valued at $1,500.

Answer rating: 100% (QA)

Here is my response A The supply of skincare goods to Mary under the staff plan is a fringe benefit since it is a benefit granted to her in relation to her job The taxable value of the fringe benefit ... View the full answer