Australian Taxation | Units of study... | Swinburne University of Technology

The unit provides an understanding of the fundamental concepts of income tax law as well as the practical application of tax knowledge across core and specialist tax areas. In particular it provides an in-depth understanding of relevant Australian tax laws and their practical application in the areas of income tax law for individuals and various business structures, capital gains tax, goods and services tax and fringe benefits tax. It also considers the tax implications of various business structures to equip candidates with the skills they need to advise their corporate clients. This unit integrates the materials from the CPA Program Professional Level segment titled Australia Taxation and prepares students for the CPA examination. This is a core unit in the Master of Professional Accounting (CPA Specialisation) degree.

Students who successfully complete this unit will be able to:

1. demonstrate coherent and applied knowledge of relevant taxation legislation and explain how legislation will impact on business operations and decisions
2. critically analyse the tax implications arising from various business structures, superannuation and associated investment decisions.
3. recommend an appropriate business or investment structure to stakeholders to achieve commercial and personal goals within the remit of Australian taxation law
4. apply taxation knowledge to business transactions involving goods and services tax (GST), capital gains tax (CGT), fringe benefits tax (FBT) and anti-tax avoidance legislation.
5. communicate proficiently and in professional practice and act as a leader or member of a team

Unit information in detail

- Teaching methods, assessment, general skills outcomes and content.

Teaching methods

Face to Face Mode:

Scheduled hours: Class (12 x 3 hours)

Student workload:

For all teaching and learning structures (both face to face and online), students are expected to spend an average of 150 hours per unit in total over the duration of the study period

This includes all:
• Scheduled teaching and learning events and activities (contact hours timetabled in a face-to-face teaching space) and scheduled online learning events (contact hours scheduled in an online teaching space), and

• Non-scheduled learning events and activities (including directed online learning activities, assessments, independent study, student group meetings, and research)

To be successful, students should:
• Read all prescribed materials and/or view videos in preparation for each class
• Attend and engage in all scheduled classes (face to face or online)
• Start assessment tasks well ahead of the due date, and submit assessments promptly
• Read / listen to all feedback carefully, and consider it for future assessment
• Engage with fellow students and teaching staff (don’t hesitate to ask questions)

Assessment

Class Test (Individual) 20-30%
Assignment (Group) 30 - 50%

Other (Examination scheduled by CPA Australia) (Individual) 30 - 40%

Please note:

This unit is to be undertaken in conjunction with the equivalent CPA unit directly with CPA and incurs an additional fee payable to CPA. Students sit the CPA assessment which is then weighted down to 30-40% of the unit’s assessment. Students may fail the CPA assessment component but still pass the unit with Swinburne.

General skills outcomes

During this unit students will receive feedback on the following key generic skills:

Teamwork skills
Analysis skills
Problem solving skills
Communications skills
Ability to tackle unfamiliar problems
Ability to work independently

Content

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.

Study resources

- Reading materials and references.

Reading materials

Students are advised to check the unit outline in the relevant teaching period for appropriate textbooks and further reading.

References

Swinburne workshop notes, materials and online resources via Canvas and CPA Australia materials including sample exam questions.

Australian Master Tax Guide, CCH Australia Ltd, 2018
2018 Australian Income Tax Assessment Act, Oxford University Press, Core Legislation (as amended).
Coleman, Hanegbi, Hart, Jogarajan, Krever, McLaren, Obst & Sadiq: Principles of Taxation Law, Thomson, 2018
Nethercott, Devos & Richardson , Australian Taxation Study Manual 26th Ed Oxford University Press
Woellner, Barkoczy, Murphy & Evans Australian Taxation Law, 2018 Oxford University Press