Assessment Resource Summary
Unit Details FNSACC502 Prepare tax documentation for individuals

Methods Case Study Assessment Task 1
Written Questions Assessment Task 2
'12.0
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Summative Assessment - Assessor Instructions
It is important that in conducting assessment, the assessor undertakes the following•
Prior to conductinq the assessment
Read the assessment tasks as detailed throughout this document
Contextualise the task (and checklist) to ensure it reflects the students working environment. (Be sure to check with the mapping document to ensure any contextualisation still covers the unit requirements)
Read the assessor instructions and checklist prior to commencing the assessment
Ensure the assessment environment is suitable for the parameters of the task, to ensure the students will have an appropriate opportunity to demonstrates their skills
Make suitable modifications to the assessment environment (if required), to allow all tasks to be observed
Ensure the student is allocated the appropriate time and resources for the task
If undertaken on the job - discuss the assessment with the workplace supervisor, to so they are aware of what will happen throughout the process
If undertaken on the job - Determine and agree with the supervisor an acceptable time frame for each assessment.
Advise the student prior to conducting the assessment of: o what will occur throughout the assessment process? O when the assessment will occur o the level of competency expected (review the checklist or the criteria for the task to ensure the student understands the assessment process and the expectations) o the RTO reasonable adjustment process and offer adjustment for any students needing assistance o the RTO re-assessment and appeals process
You should not tell the student how to undertake the task, as it would lead the student and render the assessment process invalid. The student should have been taught -How- to perform each task during the training stage, and is expected to know this prior to commencing the assessment. Do not give the student a copy of the Assessor Checklist or Sample Answers prior to the assessment. The student instructions provide appropriate detail for the student on the expected level of competency for each task.
Conductinq the assessment
Establish and oversee the evidence gathering process to ensure it remains valid, reliable, fair and flexible
Advise the student when to commence the assessment Observe the student undertake the tasks as outlined
Record your observations in the assessor checklist
Where a checklist point is not observed due to an inappropriate environment, or for a reason outside the students control, modify the scenario to allow the student an opportunity to perform the associated task
Where a checklist point is not appropriate, write -N/A- in the space provided
Incorporate allowable adjustments to the assessment procedure without compromising the integrity of the assessment. Be sure to make appropriate notations on the assessment checklist to explain any variances to the assessment process (such as probing questions, alterations to assessment environment, etc.) to ensure the assessment process is transparent (and the assessment remains Valid)
Gather supporting documentation where available and appropriate (as evidence)
Do not interfere with the assessment unless the student's actions impose a risk to themselves or anyone else. In the event that the actions of the student impact on the safety of any person - you are to immediately cease the assessment and take actions to reduce the identified risk.
If a student performs an action incorrectly, mark it as such. Record what you see, not what you want
Once the assessment is complete advise the student that the assessment has ceased, and record your comments in the sections provided.
Makinq and recordinq the decision
The student needs to be deemed satisfactory in all assessments to gain competency.
You are to provide feedback* to the student on their performance and/or the outcome from their assessment (whether satisfactory or not yet satisfactory)
If a student has been assessed as -Not Yet Satisfactory- on their performance in an assessment they should be offered information about the appeal process and/or a reassessment opportunity. Using the evidence gathered and the rules of evidence (validity, reliability, sufficiency, currency and authenticity) determine the final outcome for the student. If you are in doubt, gather further evidence to help guide your decision.
Assess the students on what you observe during the assessment period, not on their actions before or after the assessment.
If you are marking the student NYC, ensure you outline why you have made this decision, and provide advice on how the student can improve their skills / knowledge prior to reassessment; or if the re-assessment opportunities have lapsed, provide advice on appeals and or re-enrolment. Record the assessment results onto the Assessment Summary / Cover Sheet, ensuring each section is complete
Attach all evidence (projects / checklists / tests, etc.) to this form.
Submit the completed Assessment Summary/ Cover sheet and associated evidence for processing as per your RTO procedures
Providinq feedback
• Provide constructive feedback to the student on their performance during the assessment period
Do not make any comments on actions undertaken prior or after the assessment period
• Provide the student with o Their assessment result o Clear and constructive feedback based on the assessment decision
The reasons underpinning your assessment decision
Information on ways of overcoming any identified gaps in competency revealed by the assessment the opportunity to discuss the assessment process and outcome information on reassessment and the appeals processes.
An opportunity for reassessment if appropriate or requested by the candidate

ASSESSMENT SUMMARY 1 COVER SHEET
This form is to be completed by the assessor and used as a final record of student competency.
All student submissions including any associated checklists (outlined below) are to be attached to this cover sheet before placing on the students file
Student results are not to be entered onto the Student Management Database unless all relevant paperwork is com leted and attached to this form
Student Name:
Student ID No:
Final Completion Date:
Unit Code: FNSACC502
Unit Title: Prepare tax documentation for individuals
Please attach the following documentation to this form Result
S = Satisfactory
NS = Not Satisfactory NA = Not Assessed Reassessment
S = Satisfactory
NS = Not Satisfactory
NA = Not Assessed
Assessment Task 1 Answers to the questions in case study S I NS I NA S I NS I NA
Assessment Task 2 Answers to Written Questions S I NS I NA S I NS I NA

Final Assessment Result for this unit C / NYC
Assessor Notes: (inclusive of reassessment, reasonable adjustment, further opportunities for gap training etc):

Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I also am aware of my appeal rights. Name:
Signature:
Date. Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback
Name:

Signature:
Date.
Administrative use only
Entered onto Student Management Database
Date
Initials

ASSESSMENT 1 - STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements.
Instructions for Students:
Whilst researching and writing your project it is important to:
Read the Assessment description carefully.
Assessment should be in a Word format.
Assemble and analyze a set of sources that you have determined are relevant to the issues you are investigating.
Acknowledge clearly when and how you are drawing on the ideas or phrases of others,
Consult your instructors when you are unsure about how to acknowledge the contributions of others to your thought and writing.
Read the Plagiarism policy and procedure carefully to understand the consequences that you could face if your work is plagiarized.
Student can seek clarification regarding the assessment required to be done.
Students can ask for reasonable time from Assessor for preparation of project or Assessment. Students can seek information on additional reading material and reference for completion of the assessments.
Students with special needs can seek assistance from Assessors depending upon the nature of the need
Submit this document
Case Study Assessment Task 1
For this assessment, you are required to go through the case study and answer the questions that follow case study.
Question 1
You are a tax agent and on 2 August 2016 one of your clients, Rebecca, has come to you for assistance Rebecca is employed as a computer systems engineer and, due to her heavy work commitments, has not yet sorted out her tax matters. She currently earns $80,000 and has only $17,850 PAYG withheld from her gross income. Rebecca also received an unfranked dividend from BHP shares of $600
After sorting through the shoebox that holds all of Rebecca's paperwork, you uncover the following receipts and expenses.
Software programmer annual subscription $300
3 Mobile accounts totalling $800
Adam's Technical bookshop receipts totalling $650
Home office expenses (stationary, electricity 20%, internet, printer consumables
$3500
Bank interest $1000
Rebecca also advised that she has additional self — education expenses of $3500, but could not locate the receipts
Rebecca has no private health insurance and she is single and has no dependents Rebecca often works from home office.
Required.
1 . As her tax agent, what advice can you give Rebecca about the ATO's lodgement process and deadlines?
2 What are Rebecca's lodgement options?
3 What can you tell Rebecca about the self — assessment process?
4 What range of powers does the ATO have for auditing and reviewing a taxpayer's tax affairs?
5. What advice can you give Rebecca about future tax preparation?
6. Calculate Rebecca's taxable income.
7. Calculate Rebecca's tax payable/refundable for the 2015-2016
Taxable income Tax on this income
o- $18,200 Nil
$18,201 - $37,000 19c for each $1 over $18,200
$37,001 - $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54,547 plus 45c for each $1 over $180,000
* Excludes Medicare levy of 2%
Taxable income Flood Levy on this income
o - $50,000 Nil
$50001 0.5 cent for each $1 over $50000
$100000 and over $250 plus 1 cent for each $1 over $100000
Question 2
Using the information provided below for 2015 for an individual taxpayer, complete the relevant income tax return for the current year of income.
You will need to download a copy of form current NAT 2541-6-2016 from www.ato.gov.au to complete these questions
Client information
Name Angelo
Tax file number 345 345 324
Date of birth 02/1/1970
Postal Address 14 Footscray Vic 3032
Home address As above
Occupation Fitter Machinist
Daytime phone number (03) 99732449
Spouse Jennat
Spouse date of birth 1/5/1979
Spouse income $36 150 (includes interest) portion of bank

Payment Summary
Employer A2Z TD Solutions
Employer's ABN 15 234 888 789
Gross wage $55000
Allowance Uniform $285
PAYG tax withheld $10350
Period of employment 1/7/2012 - 31/6/2013
Other income
Bank interest $300 at NAB Hamersley Branch, Joint account with his spouse Jennat
Shares sold during the year: BHP shares at a profit of $2000• Angelo elected to apply the 50% discount to his capital gain
Distribution from a property investment trust; 0/0670
Dividends from Westpac share held; Dividend $200, franking credit $54
Union subscription: AWIJ $230
Laundry Expense $150
Donations: Red Cross $20 mission Australia $40
Other information
Angelo and Jennat have one child
Angelo incurred $55000 net medical expenses on behalf of himself and his family. The threshold for 2015-16 is $1500
Question 3
Marry is a florist with a business called -Marry rose stems- using the information and tax rates below for the financial year ended 30 June 2013, download and complete a form I income tax return from www.ato.gov.au
Personal Details:
Marry John
TFN: 145 687 1 16
Date of birth: 15/5/1969
Address: 25 Bell St. Coburg VIC 3057
Business Address: 276 Sydney Road VIC 3058
Receipts
Accounts Receivables (received from debtors)
Cash Sales $160000
Insurance recovery on damaged stock $50000
Misc Income $5000
Bad Debts $2000
Loan
Payments $3500
$20000
Drawings $15000
Repayment of load — Principal $5000
— Interest $1000
Employee wages $40000
Superannuation guarantee contributions $60000
Insurance $3600
Store rental $3000
Subscriptions to flowers monthly $24000
Accounting and bookkeeping fees $200
Electricity $1200
Motor Vehicle expenses $1600
Gifts and donations $200
Entertaining suppliers $600
Phone (03) 97774559
Additional information
V2„o
Marry does not want to access the small business entities concessions All figures are net of GST where applicable
Marry used $2000 of trading stock for personal use.
Decline in value at taxation rates: plant and equipment $5000, monitor vehicle $700
Balances 1 July 2012 30 June 2013
Debtors $15000 $17000
Creditors $11000 $12450
Trading Stock (cost) $12000 $11000
Current tax rates
Taxable income Tax on this income
o - 6000 Nil
$6001-$37000 15C for each $1 over 6000
$37001 - $80000 $4,650 plus 30C for each $1 over 37000
$80001 - $180000 $17,550 plus 37C for each $1 over $80000
$180001 and over $54,550 plus 45C for each $1 over $180000
* Excludes Medicare levy
Taxable income Flood Levy on this income
o - $50,000 Nil
$50001 0.5 cent for each $1 over $50000
$100000 and over $250 plus 1 cent for each $1 over $100000
4. Frank is the owner of a garden maintenance and landscaping business which services the Melbourne CBD area. He drives a Holden Victoria Utility he purchased in 2010 at a cost of $32000. It has a 3200-CC capacity engine and it is primarily used or picking up supplies and transporting materials and tools to his various jobs.
Frank was conscientious with his record keeping and for this reason kept a comprehensive log book for the current tax year.
Information included in his log book included the following:
Travel to suppliers and customers — 2300KM
Travel from home to work — 1890KM
Private family travel — 160 KM
Total - 4350KM
Frank's running costs for the year including the decline in value (depreciation) totalled $12800
Required-
(a) Using the information above, calculate the maximum amount that Frank would be able to include as deduction for car expenses for the year from the method available to him.
(b) What other vehicles are treated in the same way as Frank's?
5. Linda works as a real estate agent for the professional Melbourne. Her work requires her to travel between various client meetings and properties. Linda purchases a 2200-cc Holden Astra in July at a cost of $ 1 8500. She had additional expenses for registration and insurance of $1200 During the same tax year, Linda incurred the following expenses.
Petrol - $5000
Parking - 50
Car washes — 200
Parking fines (client premises) — 450
Inslitule
CRCOS No:
Freeway tools (work — related travel) — 230
Taxi fares from work Christmas party — 50
Taxi fares to work while car is being repaired — 400
Gas Conversion for the Astra — 2300
Car Loan repayments (Including interest of $2500) - 6800 Insurance excess (car accident) — 400
Any calculation for depreciation will be calculated using the diminishing value method.
What is the total of Linda's allowable car expenses for the purposes of using Division 28 methods of calculations?
Written Questions Assessment Task 2
Instructions for Students:
Whilst researching and writing your project it is important to:
Read the Assessment description carefully.
Assessment should be in a Word format.
Assemble and analyze a set of sources that you have determined are relevant to the issues you are investigating.
Acknowledge clearly when and how you are drawing on the ideas or phrases of others•
Consult your instructors when you are unsure about how to acknowledge the contributions of others to your thought and writing.
Read the Plagiarism policy and procedure carefully to understand the consequences that you could face if your work is plagiarized.
Student can seek clarification regarding the assessment required to be done.
Students can ask for reasonable time from Assessor for preparation of project or Assessment. Students can seek information on additional reading material and reference for completion of the assessments.
Students with special needs can seek assistance from Assessors depending upon the nature of the need.
Submit this document
Questions
1 Describe what is meant when a taxpayer is classified as a -small business entity- (SBE)
2 What rules apply to the valuation of trading stock if a taxpayer is classified as an SBE?
3 If a taxpayer business chooses not be assessed under the simplified taxation system (STS) what other methods of trading stock valuation are available to be used?
4 Explain what happens with the valuation of trading stock which has become obsolete or will no longer attract the full market price at sale.
5 Ben is the proprietor of a corner delicatessen which opened for business during the current financial year. Over the course of the year, Ben takes approximately $25000 for personal consumption
You have been appointed as the tax Agent for Ben's deli and as such are required to explain to Ben the treatment of trading stock which has been taken for private use or consumption by the taxpayer during the current income year. What would you be telling him?
6 Answer whether true or false.
A tax ayer can claim for a dependent who resides overseas
A taxpayer is not entitled to a spouse tax offset for any period during which that taxpayer or their spouse was eligible for family tax benefit
A child of a taxpayer student attending university and under 25 years is classed as a dependent for tax purposes
General rules dealing with liability to tax are contained in the ITAA97.
The income year for tax purposes is normally the same as the financial ear unless the taxpayer has a special dispensation from the tax office
Income tax is a tax imposed on individuals and some other entities. It is worked out by reference to a taxpayer's taxable income for the income year
7 Kerry is a qualified nurse who was offered employment in Eritrea for six months during the current financial year on an approved overseas aid project. She is a single resident taxpayer aged 45 During her six months overseas. Kerry earned a total of A$25000 wages from which $4000 tax was withheld for tax purposes in Eritrea.
For the remaining six months, Kerry earned a further $24000 from regular employment at St. John
Hospital in Subiaco. PAYG tax of $3300 was withheld from her gross income.
Using the tax rates provided below, calculate Kerry's taxable income and the net tax payable/refundable.
Current tax rates
Taxable income Tax on this income
o - $18,200 Nil
$18,201 - $37,000 19c for each $1 over $18,200
$37,001 - $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54 547 plus 45c for each $1 over $180,000
* Excludes Medicare levy
Taxable income Flood Lev on this income
o - $50,000 Nil
$50001 0.5 cent for each $1 over $50000
$100000 and over $250 plus 1 cent for each $1 over $100000
8 Using the examples below, give reasons indicating whether each taxpayer is conducting a business or a hobby for tax purposes.
a. Marry is working as an artist on a part time freelance basis. During the financial year, she received $6000 as a commission for one of her artworks.
b. Pia makes pottery as a hobby and has sold some of her work to the value of $800. Her expenses in relation to her property are in excess of $1000

c. Dave carriers out gardening tasks in his local area over the weekend. He has received $5500 during the financial year for his services.
d. Angella designs wedding dresses and won a local fashion award which resulted in a payment of
$5000
9 Assessable income from business.
John is a sport coach, offering his service to schools and local sports clubs. He operates his business on an accrual basis for tax purposes.
During the 2015/16 financial year he had the following receipts.
Cash takings from coaching session - $20000
Receipts from regular customer bookings - $150000
Capital contributed - $10000
CST received - $28000
Fully franked dividend - $2500
(John dividend amount x 30/70 = John credit)
John also had the following balances (excluding CST)
Income received in advance as at 30 June 2015 - $15000
Income received in advance as at 30 June 2016 - $12000
Calculate his assessable income for the year ended 30 June 2016
10 For each of the following collectable, personal use or other use assets, state whether their disposal would give rise to a capital gain or loss. In each case, specify the type of asset. In each example, a resident taxpayer makes the disposal.
a. In September 2011, Jennifer sells some Wesfarmers shares for $20000. The shares were originally purchased in 1985 for $7500
b. In March 2012, Stefan sells some furniture that he purchased in July 2000 for $3000. The furniture was approx. 50 years old and he receives an amount of $4500 for the sale.
c. Fabio sells his Peugeot sports car for $60000 in January 2012. He originally purchased the car for $85000 in September 2005
d. In March 2011, Margot sells her antique dresser for $1100. The dresser is more than
100 years old and was purchased in April 1999 for $4000
11 What are the three methods of calculating a capital gain and what determines which method should be used when a capital gains tax (CGT) event occurs?
12 A taxpayer, Janet King, Purchased a block of land on 25 February 1996 for the cost of $100000. On 18 September 2012 the block was sold for $200000.
a. Calculate the capital gain using the frozen indexation method
b. Calculate the capital gain using the discount method.
13 1. What are the legal and taxation requirements of a partnership?
2. Explain how partners in a partnership derive their net income under s.90 ITAA36
3. Ben Smith and Elias Jones commenced a partnership in a business erecting pergolas and garden furniture. After their first year of trading they showed a net profit of $50000. In their partnership agreement, profit are shared equally between the partners after adjusting for the following:
Partners salaries — Smith $10000, Jones $10000
Interest on Capital — Jones $5000
Interest paid on advance from Smith - $3000
Interest on drawings — Jones $2000
Required
a. Calculate s.90 partnership net income.
b. Prepare a distribution statement
c. Calculate assessable income
14 Define the following terms relating to trusts:
a. Settlor
b. Trust property
c. Trustee
d. Beneficiary
e. Corpus
Calculating net trust income
15 For the following transactions, calculate the net trust income for that period
Gross income - $50000
Operating expenses - $19000
Education expenses paid by the trustee on behalf of the beneficiaries - $10000
16 Describe the tax returns and information required to be lodged by trusts for an income year. What is a statement of distribution and what information should it contain?