1. Work out the Medicare levy payable for the following clients: (a) Jack, who
is single, has a taxable income of $25,000 for 2014-15. He is not eligible
for either the seniors and pensioner tax offset or Medicare exemption. (b)
Paul, who is not married, has a taxable income of $50,000 for 2014-15, He
is not eligible for either the seniors and pensioner tax offset or Medicare
exemption. (Show all your working and explanation) (4 marks)
2. Describe ALL the tests available to determine whether an individual is a
resident for tax purpose. (5 marks)
3. What is the difference, about source of income, between resident for tax
purposes and foreign resident? (3 marks)
4. Li, who is not married, migrated from China to Australia on a permanent
resident’s visa. Shortly after arriving in Sydney, he secured a job with an
accounting firm. He intends to reside here permanently. In 2014-15, he
received gross salary of $60,000, bank interest income from the savings in
China of $2,000 and paid $1,250 for the accounting course that maintained
or improved the skill and specific knowledge required for his current work
activities. Assume that he did not pay any taxes on the interest income in
China. He does not have a private health fund with hospital cover. Calculate
how much tax Li is required to pay? (Show all your working and explanation)
(12 marks)
5. ABC Pty Ltd’s accounting profit for the year ended 30 June 2015 was $5,000.
Included in this profit were Depreciation using accounting rate of $1,000
and sales revenue $25,000. During the year the company received $28,000
in cash from its clients for the sales invoices previously issued. The taxation
depreciation is $1,100. The company is entitled to an offset of $1,000. The
company tax rate is 30%. Calculate how much tax ABC Pty Ltd is required to
pay? (Show all your working and explanation) (5 marks)
6. Describe the mandatory requirements of APES 220: Taxation Services, which
is effective from 1 May 2011. (10 marks)
7. (a) What is the definition of a tax agent service under the TASA: Tax Agent
Services Act 2009? (b) What should a tax agent service include under the
TASA? (c) List 14 principles that applies to all registered tax agents and BAS
agents according to TPB’s requirements. (15 marks)
8. What are minimum record-keeping requirements for all taxpayers by law?
(5 marks)
9. Describe the tax collection system used by ATO and TWO elements under this
system. (5 marks)
10. John is working as an accountant. In 2014-15,
• He earned the gross salary of $90,000.
• He won a lottery with the prizes of $2,000.
• He purchased a new property after selling the old one in the same year.
He always lived in the property that was sold as home before moving to
the new one.
11
ADDENDUM | © 2019 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE
FNS60215 & FNS60217 ADVANCED DIPLOMA OF ACCOUNTING | TAX PLANS_V1.6
ADDENDUM | © 2019 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE
FNS60215 & FNS60217 ADVANCED DIPLOMA OF ACCOUNTING | TAX PLANS_V1.6
• Because his employer has two offices in Sydney, he was required to use
his own car to travel between the offices and sometimes go to see his
clients for work purposes.
• He is going to operate a sole trade business as a taxi driver. The
estimated turnover will be around $50,000.
Provide taxation advice to John about the following issues:
a. Is the lottery win of $2,000 assessable?
b. Is John required to pay CGT for the properties he bought and sold during
the year?
c. What is the compulsory registrations required for his proposed business?
d. What deduction can John claim in his tax return 2015?
e. John is seeking your advice to minimise his tax liability. What are your
recommendations?
f. What kinds of documents must John keep for tax return preparation in
the current year and future?
(26 marks)
11. Describe the key features about taxation for sole trader, partnership, trust
and company. (20 marks)
Assessment 1 total: 110 marks