LW203 Tax Law I

DESCRIPTION

The Australian taxation system is evolving rapidly and changes on a weekly basis. An understanding of taxation law principles is vital in today’s complex business environments. Most business events have taxation consequences, so it is vital that accounting graduates understand taxation knowledge as they prepare to enter the business world. The purpose of this unit is to introduce students to the fundamentals of taxation law and practice.

RELEVANT COURSES

Bachelor of Accounting*

*Core unit

CREDIT POINTS

10

DELIVERY MODE

On campus
Intensive
Extensive

PREREQUISITE OR CO-REQUISITE

AC101 Accounting I AND LW101 Law I

UNIT LEARNING OUTCOMES

LO1 Describe the Australian taxation system and related concepts including legislation, cases, and rulings

LO2 Research Australian tax problems using online databases and websites

LO3 Discuss and resolve authentic client problems that a graduate would use in professional practice

LO4 Review authentic ATO documents and interpret their meaning

LO5 Apply teamwork, communication and problem-solving skills while working with others

LO6 Calculate a taxpayers’ tax liability to the Australian Tax Office

CONTENT

  • Sources of taxation law including legislation, cases and rulings. History of taxation. Introduction to the Australian taxation framework
  • Study skills for taxation law including online materials, legal databases, research techniques and ruling applications
  • The taxation formula including assessable income, exempt income and taxable income
  • Residency including the common law tests and statutory tests. Sources of income
  • Assessable income including income from personal exertion, income from business and income from property
  • Allowable deductions including positive limbs, negative limbs, home office expenses, self- education expenses and others
  • Allowable deductions (specific provisions) including repairs, bad debts, tax losses, tax related expenses and others
  • Calculation of tax payable including tax rates for residents and non-residents, rebates, Medicare levy and PAYG withholding tax
  • Capital Gains Tax (CGT) general topics including history of CGT, CGT events, calculations, exemptions, rollover and CGT discount method
  • Capital gains tax specific topics including the main residence exemption, collectables, personal use assets and CGT on death
  • Fringe Benefits Tax (FBT) including what is FBT, taxable value, otherwise deductible rule, calculations, car fringe benefit and expense payment fringe benefits
  • Introduction to the Goods and Services Tax (GST) including GST registration, charging GST, types of supplies, acquisitions and adjustments

ASSESSMENT METHODS

  1. Forums – 30%
  2. Exam – 20%
  3. Exam – 50%

PRESCRIBED READINGS

Sadiq, K., Black, C., Hanegbi, R., Jogaraian, S., Krever, R., Obst, W., Ting, A.K.F. (2021). Principles of taxation law 2021. (11th ed.). Sydney: Thomson Reuters.

Check with the lecturer each semester before purchasing any textbooks