COURSE OVERVIEW:

In Australia, two income tax assessment Acts are used to levy tax on taxable income. They’re equivalent in size to four telephone books and contain the various tax Acts that give the federal government the authority to tax you.

The dominant purpose of the income tax legislation is to raise revenue by levying a tax on taxable income. The tax Acts point out that assessable income minus deductions equals taxable income, and then tells you the rules you need to follow to calculate your assessable income and allowable deductions. The Acts also tell you who must pay income tax and how to work out how much income tax you must pay.

For resident individuals, tax is levied on worldwide income on a progressive basis, referred to as marginal tax rates. Your marginal tax rates can vary between 0 per cent and 45 per cent. This rating system means the more income you earn, the greater the amount of tax you’re liable to pay. Australia has numerous federal, state and territory, and local government taxes that you need to deal with.

Generally, you have a choice of two ways to solve your tax liability problems. You can either pay a registered tax agent or solicitor who specialises in income tax law, or you can try to find out the answer yourself. Although seeking professional advice is highly recommended and encouraged, you need never underestimate your own abilities. If you use basic research skills that you acquired during your student days plus the skills you use to do your job, you may be pleasantly surprised at how adept you are at taking on responsibility for your own tax journey.

In this course, you will find that Australian income tax law is made up of rules and regulations that you need to know and follow. The first part explains the tax system, the tax rates and rules, the sources of income and the tax if you’re a company.

The second part explains the tax formula, identifies assessable income, works out exempt income and dissects the general deduction provisions.

The third part helps you prepare and lodge your tax return and receive a notice of assessment. Finally, the fourth part helps you understand self-assessment, how to prepare for a tax audit and how to appeal against a Tax Office decision.

LEARNING OUTCOMES:

By the end of this course, you will be able to understand:

• How the Australian tax system works?
• The history of the Australian tax system
• Your income tax rates: The federal taxes, state taxes and local taxes
• The most important federal taxes
• The taxes levied by states
• The taxation of major income streams
• The three major sources of income
• Taxing your treasures: CGT assets
• International sources of income
• The three key tests used to determine source of income
• How taxing a company works?
• How to declare what you earn?
• Assessable income, ordinary income and statutory income
• How ordinary income is generally divided into three broad categories?
• How to keep what you receive - exempt income?
• The payments that are exempt from income tax
• The characteristics of income
• How to reduce your tax bill?
• General deductions
• What you can deduct from your assessable income?
• How to comply with the deduction part of the tax formula?
• How to qualify for a tax deduction under the first positive limb?
• The second positive limb
• The negative limbs
• How to check out what is capital in nature?
• What are not tax deductible?
• The two key tests to determine whether certain expenditure is capital or income in nature
• How to check out what is private or domestic in nature?
• How to figure out when something is incurred?
• How to lodge your tax return?
• How to prepare your individual tax return?
• The PAYG payment summary
• The four methods of claiming a car expenses
• How to claim a standard deduction?
• The notice of assessment
• Receiving a visit from the tax office
• The self‑assessment system
• The tax audit
• How to prepare for an audit?
• The most common tax mistakes associated with running a small business
• How to amend or lodge an objection if you’re dissatisfied with an assessment or a Tax Office decision?

COURSE DURATION:

The typical duration of this course is approximately 2-3 hours to complete. Your enrolment is Valid for 12 Months. Start anytime and study at your own pace.

COURSE REQUIREMENTS:

You must have access to a computer or any mobile device with Adobe Acrobat Reader (free PDF Viewer) installed, to complete this course.

COURSE DELIVERY:

Purchase and download course content.

ASSESSMENT:

A simple 10-question true or false quiz with Unlimited Submission Attempts.

CERTIFICATION:

Upon course completion, you will receive a customised digital “Certificate of Completion”.