Reference no: EM132211192
Question: Complete your client's individual Tax Return for 2018
General Facts: Jenny Clark is a flight attendant employed by Virgin Australia. She is single and owns an apartment in Sandy Bay, which she purchased in 2003. Jenny has supplied you with the information below relating to her personal income tax affairs for the year ended 30 June 2018. However, she is not certain whether everything she has provided is assessable or deductible. Because of her uncertainty, she has asked you to carefully consider each item and determine whether it is assessable or deductible. Jenny wishes to minimise her 2017-18 taxable income wherever legally possible. Assume that the amounts detailed below are all of Jenny's receipts and expenditure for the 2017-18 income year, and that all of her expenses are correctly substantiated (unless stated otherwise).
1. Personal information Client Full Name: Jenny Clark
Date of Birth: 30th May 1967
Occupation: Flight Attendant
Tax File Number: 111 222 333
Telephone Number: (03) 5522 8877
Home Address: Apartment 3, Seaview Apartments, 102 Hook Street, Sandy Bay
2. Salary and Wages
During the 2015/16 income tax year, Jenny worked as a flight attendant for Virgin Australia. Jenny was provided with a PAYG Payment Summary from her employer for the period from 1st July 2017 to 30th June 2018, which included the following information:
Name of Payer: Virgin Australia Ltd
ABN of Withholder: 00 111 222 789
Gross payments: $85,000
Laundry Allowance: $184
PAYG tax withheld: $28,265
Reportable Fringe Benefit Amount (RFBA): $9,000
Reportable Super Contribution (RSC): $3,000
In addition to her salary, Jenny also received free parking at Hobart Airport (worth $12,000 per year) and one free flight on Virgin Australia per year up to a value of $5,000 - on 15 December 2017, Jenny used this benefit to fly to London on holiday. The return trip cost $6,250, so Jenny was required to pay the difference ($1,250) to Virgin Australia.
On 3 august 2017, Jenny received a dividend from the Virgin Australia Ltd Employee Share Scheme of $7,000 fully franked. On the same day, she received a fully franked dividend of $6,500 from Horizon Energy Pty Ltd (a small business entity) and an 80% franked dividend from Challenger Ltd of $9,000 (a listed public company).
For the 2017-18 income year, Jenny earned income from her rental property of $16,800. For the period from 1 July 2017 to 30 June 2018, she earned interest of $5,400 from the ANZ Bank and $3,250 from the Commonwealth Bank. Jenny does not have a HELP debt, nor a Financial Supplementary debt and he has not received any trust distributions in the 2017-18 income tax year.