QUESTION:
Annie is 21 years old and was born in New Zealand. She had the following transactions:
(1) On 1 July 2014 she moved to Australia to take up a job with a bank in country NSW after working for the New Zealand subsidiary of the bank for 3 years in New Zealand. She rented a house for 12 months. She has a bank account in New Zealand, however she opened up a bank account in Australia so that her salary can be deposited into the account. Being a keen netballer, she joined a local netball club and plays in local competitions in Sydney once a week. Her salary from the bank totalled $130,000 for the year. She also earned $300 in interest from her New Zealand bank account.
(2) Once a month, she cleans her elderly neighbour’s roof because she feels her neighbour is too old to be climbing up ladders to clean the roof. She doesn’t know her neighbour’s name, so she addresses him as “Sir”. She was given $500 from her neighbour at Christmas.
(3) She sold her dining table for a gain of $300 on 1 January 2015. The dining table was purchased on 1 July 2013 for $600 and Annie has only ever used it to eat her meals.
(4) She has several lemon trees in her garden. Due to an abundance of lemons, Annie allowed her friends to enter her property and pick as many lemons from the trees as her friends wish. Her friends pay Annie $0.20 per lemon picked from the trees.
(5) On 1 August 2012, she purchased 10 hectares of land for $1m in Sydney that was suitable for subdivision. At the time of the purchase, she intended to get approval from the council to subdivide the land onto 50 blocks and then sell them for a profit. In the meantime she leased the property for grazing horses. On 1 May 2014, the council rejected her application to subdivide the land. She reluctantly sold the land for $3m without any subdivision on 30 June 2014 with the money to be paid on 1 January 2015.
Explain the income tax implications of the above transactions. You must cite relevant sections, case law and tax rulings in support of your answer.