In April 2016 Norman, a hairdresser, bought his main residence in Melbourne for $700,000. Legal and stamp duty costs associated with the purchase were $70,000. The home had six rooms.
In April 2017 Norman spent $100,000 in making part of his home suitable for his hairdressing business. The business used two of the rooms and he started working f2rom home in May 2017.
Advise Norman of the capital gains tax implications of the above facts for the 2016- 17 year.