Arthur runs an import/export business. On 1st June 2025 he obtained a business loan of $100,000 for a term of 8 years. He incurred the following expenses in relation to borrowing the money;

Application fees $1,000
Stamp Duty $347
$1,347

Best Childcare Pty Ltd, a childcare business during the year deposits $56,000 made up of the fol-lowing amounts into her bank account;

• $10,000 loan from her husband Bruno,
• $30,000 in childcare fees,
• $10,000 transferred from a term deposit that matured,
• $6,000 income tax refund from the previous financial year.

They were owed $12,000 in childcare fees at the end of the previous year and is owed $15,000 in childcare fees at the end of the current year.

Edward manufactures and sells 5150 guitars, and on the 1st April 2025 he review’s his accounts and decides that he can afford to pay rent for his business premises in advance for the next 18 months. The rent is $1,000 per month and Edward pays $18,000 to the landlord on 1st April.

Edward is subject to tax laws where prepaid expenses are not immediately deductible and have to be expensed over the period of the prepayment.

Mark operates an engineering business called GGG Pty Ltd. The accounting profit for the year was $250,000. Included in the accounting profit are the following items;

• Fines of $2,000,
• Non-deductible entertainment expenses of $650.
• Depreciation for accounting purposes $5,000
• Depreciation for tax purposes $7,000

GGG Pty Ltd undertook capital works at his factory 2 years ago and is able to claim a tax deduction on these works of $1,500 per year. GGG Pty Ltd is subject to 25% tax on it’s taxable income.

GGG Pty Ltd has paid the following income tax instalments during the current financial year with the exception of the last one which has not yet been paid;

28 July	Prior year June instalment	$12,000,
28 Oct	September instalment	$15,000,
28 Jan	December instalment	$15,000
28 Apr	March instalment	$15,000
28 July	Current year June instalment	$15,000.