Australian Taxation

Types	Individual/Group Role	Weighting	Unit Learning Outcomes (ULOs)
Assignment	Group	20-30%	1,2,3,5
Assessment (Scheduled by CPA)	Individual	30-40%	1,2,3,4
Test	Individual	30-50%	1,2,3,4

Module 1

Legal, ethical and regulatory fundamentals. The purpose of the taxation system; the sets of ethical rules which guide the behaviour of accountants in the provision of tax services and the role of the Tax Practitioners Board (TPB) and their Code of Professional Conduct.

Module 2

Principles of assessable income: The concept of taxable income and the concepts of ordinary income, statutory income, exempt income and non-assessable non-exempt income. The core concepts of international taxation and the trading stock rules.

Module 3

Principles of general and specific deductions. General and specific deduction rules as stated in taxation law including statutory deductions for non-capital repairs, tax losses, and bad debts. The tax rules for borrowing expenses and negative gearing for investment properties are also discussed in this module.

Module 4

Capital allowances. The regime by which taxpayers can claim a deduction for the decline in value of depreciating assets used for a taxable purpose over the lifetime of the asset as applicable to a small business entity (SBE) or a non-small business entity. Capital works deductions are also considered.

Module 5

Capital gains tax (CGT). The procedure whereby CGT is levied on capital gains or capital losses arising from CGT events happening to CGT assets and the six-step process to calculate capital gains tax. Relevant discounts such as the main residence exemption and any relevant small business concessions are also considered.

Module 6

Taxation of individuals: The special rules for individual assessable income and certain allowable deductions are discussed to arrive at an amount of taxable income to which the marginal tax rate is applied to determine gross tax payable.

Module 7

Taxation of SBEs and partnerships: Taxation issues applicable to small business entities (SBEs) and concessional taxation treatment including special trading stock rules, simplified depreciation rules, small business CGT concessions, start-up expenditure deductions and the small business tax offset. The income tax treatment of a partnership structure is also considered including how the net income of the partnership is derived and distributed to individual partners.

Module 8

Taxation of trusts, companies and superannuation funds.The taxation of trusts and the general concessions available for trusts including trust loss measures, company loss tracing concession, holding period rules, trustee beneficiary reporting rules, and access to the small business restructure rollover are considered. The taxation of companies including an overview of the dividend imputation system is covered as are the taxation rules applicable to Superannuation funds.

Module 9

Fringe benefits tax (FBT): Non-cash benefits provided by employers to employees that are private in nature are subject to fringe benefits tax (FBT) payable by the employer. There are specific and exempt fringe benefits and benefits taken by way of salary packaging.

Module 10

Goods and services tax (GST): GST is a flat 10 per cent broad-based indirect tax on the private consumption of most goods and services in Australia. It is levied on each step of the production chain but generally only borne by the final consumer. Eligible suppliers of goods or services are entitled to claim a tax input credit for any GST paid and remit the net amount of GST to the ATO each month via a Business Activity Statement (BAS).

Module 11

Administration of the tax system: The taxation system is administrated by the federal government through its delegated authority, the Australian Taxation Office (ATO) which oversees the income tax self-assessment system which all taxpayers must comply with. The lodgement of returns and assessments, fines and penalties for non-compliance, the application of the Part IVA anti-avoidance laws and the operation of the promoter penalty regime are also considered.