Genovieve MacIntyre is an Australian resident taxpayer.Genovieve was studying nursing at Curtin University and had oneyear left of her degree. However, in 2018, she decided todiscontinue her studies and pursue a career as a beautician. Shebegan working as a beautician in a high-end salon in Nedlandscalled “Polish.”

The following information relates to the tax year ending 30 June2020. Please discuss the income tax implications of each of thebelow.

1. In addition to working at the salon, on the weekends,Genovieve provides beauty services to her oldest friend Aurora.Aurora has a busy social life and Genovieve estimates that sheprovides her with beauty services such as makeup and nailapplication every two weeks. In January 2020, Aurora giftedGenovieve two amounts. One was $2,000 in respect of Genevieve’sbeauty services for many years and another amount of $1,000 whichAurora begged Genovieve to accept as a gift for being such awonderful friend. Genovieve did not want to accept the money buteventually took the $2000 and told Aurora to give the $1,000 to aworthy charity. Aurora chose Greenpeace, as that was a charity sheknew Genovieve had supported in the past.

2. As a result of her work for Aurora, Genovieve finds she has anumber of friends who want beauty services performed on theweekends. She doesn’t keep detailed books and records. However,Genovieve thinks she has around 20 friends for which she regularlyperforms these services. She tells them to leave a small token oftheir appreciation and leaves a price list of “suggested prices”for various services on her coffee table that they might like todonate. Genovieve has received $10,000 in the current income yearfrom these friends.

3. As a result of the increase in beauty procedures she isperforming for her friends on the weekend Genovieve purchases anEVO 2 Deluxe Spa Table for $7,500 on 1 January 2020. This will havean effective life of 7 years.