Unit/s Assessed FNSACC411 Process business tax requirements
Assessment Name FNSACC411 Assignment
Type of Assessment
This summative assessment will enable your assessor to make a judgement of competency based on the submission of your completed assessments against the requirements of the unit/s of competency in this module.
The Assessment Benchmark developed for each unit of competency is the evidence criteria used to judge the quality of performance (i.e. the assessment decision-making rules). Assessors use these benchmarks to make judgements on whether competency has been achieved and to determine if you have performed to the standard expected to meet the unit requirements.
Where appropriate Monarch Institute will allow flexibility in the way in which each unit is assessed based on the needs of an individual.
Assessment of this course is based on competency-based principles.
S = Satisfactory
NS = Not Satisfactory
If you fail to perform satisfactorily for the assessment in the prescribed way you may be assessed as ‘Not Satisfactory’. You are required to be assessed as ‘Satisfactory’ in all assessments for each unit of competency.
Your assessment can be submitted after you have reviewed the learning materials and practiced enough to feel confident in your resubmission. You have two weeks from your last submission feedback to resubmit. You are re-assessed in only the areas where your assessor has indicated you were initially assessed as NS. It is at the assessor’s discretion to re-assess the entire assessment should an overall understanding not be demonstrated. When you are re-assessed as ‘satisfactory’ after re-submission you will achieve competency for this assessment.
Declaration of Understanding and Authenticity
I acknowledge the assessment process has been explained and agree that I am ready to undertake assessment. I am aware of where to find the assessor’s feedback for the assessment. I am aware of the appeals process, should the need arise. I also understand I must be assessed as ‘satisfactory’ in all parts of the assessment/s to gain an overall competent result for the unit/s of competency. If I am found to be NS after a second attempt, it is at the assessor ‘s discretion whether I may be permitted one final attempt. I am aware that a ‘not competent’ final outcome means I may incur fees for re-enrolment in the unit/s.
I certify that the attached material is my original work. No other person’s work has been used without due acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the purpose of detecting plagiarism. I understand a person found responsible for academic misconduct will be subject to disciplinary action (refer to Student Information Guide).
* I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by the above student declaration.
Student Name*: Date:
1. Complete the Declaration of Understanding and Authenticity (above).
2. Once you have completed all parts of the assessment login to the Monarch Learning Management System (LMS) to submit your assessment.
3. In the LMS, click on the link to ‘Submit [assessment name]’ in your course and upload your assessment files. Click save and then click submit assignment
4. Please be sure to click ‘continue’ after clicking ‘submit assignment’.
Short Answer and Calculation
Identify, describe and process various taxation obligations
Activity instructions to candidates
• This is an open book assessment activity.
• Students should use a hand held calculator and/or software to perform calculations.
• You are required to read this assessment and answer all questions that follow.
• Please type your answers into the spaces provided.
• Please ensure you have read “Important assessment information” at the front of this assessment document
• Estimated time for completion of this assessment activity: 2-3 hours
The following questions are based on the material in the textbook -Process Business Tax Requirements- by Phillip Charles & Sonia Deaner, 14th Edition (July, 2018), ISBN: 978-1-760730-49-9 or 13th Edition (July, 2017), ISBN: 978-1-925433-72-2 or 12th Edition (January, 2016), ISBN: 978-1-876124-95-3
The following questions are based on the material in Chapter 2:
A taxpayer has assessable income of $43,000 per annum and deductions of $1,500.
Calculate the following:
(i). Taxable income (show your workings)
(ii). Tax on Taxable income (show your workings). Ignore any Low Income Tax Offset.
(iii). Medicare Levy (show your workings)
Indicate whether each of the following would be classified as “Assessable Income”:
Description “Assessable Income”?
Indicate with ‘Yes’ or ‘No’
Example For an office worker who received $320 weekly wages Yes
(i) For a sales representative employee who received a $200 sales commission
(ii) For a company director who received $2,000 of director’s fees
(iii) For your business which paid $700 to Alf’s Electrics Pty. Ltd. for electrical repairs
(iv) For an individual who received a $300 Family Tax Benefit payment
The following questions are based on the material in Chapter 3:
Jim McEntee is provided with a company car which he is allowed to use for private purposes. The car was purchased on 1 November 2017 for $40,000. During the year Jim drove the car 30,000 km of which 60% were for business trips.
Costs associated with the vehicle were:
Petrol and oil $1,020
Registration and insurance $1,500
(a) Required: Calculate the Taxable Value of the benefit for the 2017/18 fringe benefits tax (FBT) year for the vehicle using both the statutory formula method and the operating cost method. (Show your workings for each method).
Statutory formula method: (assume 365 days in a year)
Operating cost method: (assume 365 days in a year and a benchmark interest rate of 5.25%)
(b) Based on your calculations, state which method is the most beneficial method for the employer for assessing the FBT liability?
The following questions are based on the material in Chapter 5:
Indicate whether each of the following is, or is not, subject to payroll tax:
Description Is subject to payroll tax?
Indicate with ‘Yes’ or ‘No’
Example Reimbursement of out of pocket expenses to an employee No
a. Superannuation contributions by an employer
b. Total payroll of $2,500,000 per annum
c. Motor vehicle allowance paid to an employee
d. Bonus paid to employees at Christmas
e. Lump sum gratuity paid to employee on termination
f. Commission paid to a salesperson on value of sales generated
g. Uniform allowance paid to nurses in a public hospital
h. Payments to employees of unused leave (accrued after 1990) on termination
The following questions are based on the material in Chapter 7:
Michelle McKinley owns a non-exempt property which is valued at $500,000. Included in this same property is a house valued at $167,000. Michelle also owns two other non-exempt properties which have unimproved values of $180,000 and $260,000 respectively.
Required: Calculate the land tax liability for Michelle assuming that all the properties are located in Tasmania. (Show your workings).
The following questions are based on the material in Chapter 6:
Required: Calculate the stamp duty payable in New South Wales on the following transactions:
(a) Building insurance of $136,000 for a premium of $300 (includes GST). (Show your workings.)
(b) Purchase of a new motor passenger vehicle (4 cylinders) for $48,000. (Show your workings.)
(c) Transfer of property for $1,400,000. (Show your workings.)
The following questions are based on the material in Chapter 1:
Required: Provide answers to the following questions:
(a) Who is required to register for GST?
(b) If an entity is registered for GST, list three (3) significant obligations it has in regard to GST?
(c) If an entity is registered for GST, what entitlements and advantages does it have?
(d) What is an ‘ABN’ and who is entitled to obtain one?
(e) Is a business required to have an ‘ABN’ for GST purposes?
The following questions are based on the material in Chapter 4:
As the bookkeeper for Quick Smart Pty Ltd, the company’s manager has asked you to outline the due dates for each quarter for the employer superannuation contributions and for any related penalty amounts.
Required: Provide the dates in the following table so that you can provide the manager with the required due date information.
Quarter Ended Cut-off date to pay superannuation contributions to fund Last day to have made a late payment to a fund for use of the late payment offset Due date for lodgement and payment of the Superannuation Guarantee Charge
1 July – 30 September
1 October – 31 December
1 January – 31 March
1 April – 30 June
The following questions are based on the material in Chapter 1 (for all editions) and/or Chapter 8 of 14th edition:
Required: Provide answers to the following questions:
(a) What is Luxury Car Tax (LCT)?
(b) What are Fuel tax Credits (FTC)?
(c) What is Wine Equalisation Tax (WET)?