LAW2410 - Income Tax Framework II

Income Tax Framework provides a practical introduction to Australian taxation law. Students will identify legislation including income tax, consumption taxes, goods and services tax, capital gains tax, fringe benefits tax and determine the tax payable for individuals and business entities, companies, trusts and minors.

✔ On completion of this unit students should be able to:

• Provide solutions to income tax problems through the use of critical thinking.
• Apply legal principles relating to Income Tax, Goods and Services Tax and Fringe Benefits Tax to practical tax-based problems.
• Discuss the key features of the Income Tax Assessment Acts.

✔ Unit Content:

• Introduction - Constitutional basis, Sources of Taxation Law and Institutional framework of Tax Administration in Australia.
• Goods and Services Tax.
• Income: ordinary income, statutory income, exempt income and non-assessable non-exempt income, income from personal exertion, income from property and income from a business, revenue versus capital distinction, and offsets.
• Deductions: general and specific deductions, deductions in carrying on a business, trading stock calculation and valuation.
• Uniform Capital Allowances: Depreciating assets using the prime cost method and diminishing value method; explain and calculate balancing adjustments.
• Capital Gains Tax (CGT): Basic CGT concept including CGT exemptions and concessions; the application of gains and losses and the calculation of the discount; calculating a taxpayer's capital gain or loss.
• Partnership: Determine what a partnership is and discuss the general tax principles for partnerships; to calculate the net income of a partnership including the partner's share of net income.
• Minors and Trusts: Income of Minors, identify common types of trusts, calculate the net income or loss of a trust, and how the net income of a trust is taxed.
• Goods and Services Tax (GST): The administration and compliance of GST, and its interaction with Income Tax; GST Framework and calculate net GST payable/refundable.
• Fringe Benefits Tax (FBT) and Employment remuneration: The FBT Framework and calculate FBT payable, pay as you go (PAYG)/pay as you earn (PAYE) system of taxation collection and the treatment of allowances to individual taxpayers; tax treatment of salary sacrifice into superannuation.
• International Transactions: Taxation issues associated with non-complex international transactions; tax payable by taxpayers in receipt of foreign income.