Content
Course modules
See below for a brief description of the key outcomes relating to each of the Foundation Tax modules.
Note, if you do not wish to undertake the Certificate in Foundation Tax, you may purchase individual modules. Click here for more information.
Introduction to the Australian Tax System
Individuals
Businesses
Structures
Loans
Goods and Services Tax
Capital Gains Tax
Fringe Benefit Tax
Introduction to the Australian Tax System
- Interpret the professional code of conduct and ethical practice.
- Apply the characterisation and treatment of income and expenses, including the distinction between ordinary and statutory income, and general and specific deductions.
- Apply the requirements for a taxpayer to claim an amount as a general deduction, including the connection requirement and the impact of the four negative limbs.
- Recognise the impact of an amount being characterised as capital in nature (both from an income and deductibility perspective).
- Pinpoint the limitations placed on an employee with respect to the deductibility of certain costs (e.g. motor vehicle expenses).
- Calculate the impact of tax offsets in a taxpayer's tax liability.
Individuals
- Identify and apply relevant legislation and guidelines as they apply to the completion of individual income tax returns
- Effectively and comprehensively extract all data from a client interview
- Prepare accurate and compliant basic individual income tax returns using source data
- Complete compliant individual income tax returns in a timely and accurate manner
- Differentiate between simple tasks and those that require referral to supervisors.
Businesses
- Determine whether the activity undertaken is a business or a hobby
- Correctly calculate income derived by the taxpayer
- Determine eligibility for entry into the simplified tax system and identify benefits
- Correctly claim a loss on a non-commercial business activity
- Correctly apply the special derivation rules
- Identify deductions particular to a business as well as specific deductions
- Recognise and apply capital allowance provisions, pre-payment rules, trading stock and bad debts
- Apply the special rules that relate to primary producers.
Structures
- Identify and apply relevant taxation legislation and guidelines in relation to the choice of business structures
- Apply these legislative rulings and guidelines in differing circumstances
- Interpret the consequences of each structure for the client.
Loans
- Investigate facts to determine that a loan exists
- Apply the correct tax treatment to loans
- Determine whether interest is deductible
- Determine the tax treatment of borrowing costs, leases and hire purchase agreements
- Determine the tax treatment of loans provided by a private company to its shareholders
- Apply the debt/equity rules and the effect on the characterisation of a loan.
Goods and Services Tax
- Explain how GST works for both the consumer and the GST-registered entity
- Identify when to apply relevant GST legislation and guidelines
- Calculate GST using the legislation and guidelines to complete transactions that involve GST
- Recognise the impact of GST on a business.
- Complete a GST/BAS return.
Capital Gains Tax
- Determine whether an asset is subject to CGT
- Determine whether a CGT exemption applies
- Identify the circumstances in which capital gains or losses can be deferred
- Calculate the amount of a capital gain or loss.
Fringe Benefit Tax
- Determine whether the FBT liability applies
- Calculate FBT liability in relation to car fringe benefits
- List common exemptions from FBT
- Recognise the interaction between FBT and GST
- List the types of state taxes, identify current rates and identify when the liability for each tax applies.
