Question:

Jackson has provided you with the information below relating to his personal tax for the year ended 30 June 2021. He has asked you to carefully consider each issue/item and explain the tax treatment (e.g., why an item is/is not assessable or deductible).

For each of the relevant items referred to, your answer should state whether it is assessable/deductible or not, the amount and you should include a source of law wherever possible (e.g., a section of the Act or the name of a case; ATO Rulings can also be cited). The final component of your assignment answer will be a calculation tax payable/deductible

Personal information

	Client
Full Name:	Jacksons
Date of Birth:	30 December 1980
Occupation:	Lawyer

1. Salary and Wages

During the 2020/21 income year, Jacksons for AWL Lawyers. He was provided with a PAYG payment summary from his employer that included the following information:

	Name of Payer:	AWL Lawyers Ltd.
	Gross payments:	$129,500
	Car allowance:	$2,600
	PAYG tax withheld:	$37,750

2. Company shares

Details of the company shares owned by Jacksons are:

Company Name	Number of shares	Date of purchase	Total purchase price
FMG	300	3 May 1999	$1,800
ANZ	200	30 June 2010	$2,000

Stephen did not buy or sell any shares during the 2020/21 income year.

However, on 16 July 2020 Jacksons received a fully franked dividend of $8 per share from the ANZ shareholding and on 11 August 2020 he received a dividend of $9 per share (franked to 90%) from the FMG shareholding.

3. Unexpected receipt

On 2 January 2021, Jacksons collected $400 (profit plus the amount of the bet) on a winning bet he placed on soccer game. He has little interest in soccer and only placed the bet because a colleague at the law firm had told him it was a good investment.