Q1 Stan Eckhardt, aged 57, received a superannuation lump sum of $310,000 from his superannuation fund upon retirement on 15 April 2018. PAYG tax of $28,170 was withheld from the lump sum. The lump sum comprised entirely of an element taxed in the fund.

Stan also received gross wages of $85,000 up to the date of his retirement. PAYG tax of $22,110 was withheld from Stans wages. Stan has adequate private health insurance.

Required:

1. Calculate Stans taxable income for the 2017/18 tax year.
2. Calculate Stans net tax payable or refundable for the 2017/18 tax year.

Q2

(Small business asset pool, additions)

Gwyneth is a resident, individual small business taxpayer. As at 30 June 2017, she had a General small business pool balance of $ 41,800.

During the year Gwyneth purchased an asset for $34,800 with an effective life of 5 years and another asset for $40,400with an effective life of 30 years.

There were no disposals during the year.

Required:

1. Calculate any amounts that are deductible for the 2017/18 tax year.

Calculate the closing balance of the asset pool.

Q3

Required: Identify which of the following would be classed as trading stock under Section 70-10:

1. Pairs of shoes held by a retailer for resale.
2. Shares held by an investor.
3. Blocks of land held by a property developer.
4. Clothing held by a retail clothes shop, currently under lay by.
5. Petrol held in underground tanks by a service station.
6. Raw materials held in store by a manufacturer.
7. Stationery supplies held for office use by an insurance company.
8. Videos held for hire by a video store.