Reference no: EM133109649

Johnnie Einstein is a chemical engineer employed by Innovative Chemical Ltd. During the year ended 30th June 2021, the following events took place in regard to Johnnie's tax affairs:

Employment issues

1. Received a salary from Innovative Chemical Ltd $140,000.

2. Received a protective uniform allowance of $1,000 and spent the same amount on protective uniform costs..

3. Received a $2,000 bonus from her employer on 3rd July 2021 for her excellent performance.

4. On 1 July 2020, spent $1,000 towards protective shields for laboratory work and hazardous chemicals and despite such use, usually last 5 years. (Capital gain issues

5. Made a capital gain of $6,000 from the sale of 400 shares in Optus Ltd, a public listed company on the Australian Stock Exchange. The shares were acquired in March 2015.

6. Made a capital loss of $3,000 from a jewellery collection. The collection was a set, acquired in April 2016 at a cost of $5,000.

7. Johnnie indicated that her taxation return for the year ended 30 June of the previous year had a net capital loss of $4,000 sourced from the sale of shares

PART 1

Comment on each of the above employment and CGT issues and their tax impact.

PART 2

Calculate Johnnie's taxable income for the year ending 30 June 2021.