LAWS20060 – TAXATION LAW OF AUSTRALIA
INDIVIDUAL ASSIGNMENT
TERM 1 2019
Due date: Week 8 – Wednesday 8th May 2019
Weighting: 40% – 40 marks in total available
Length: 2500 – 3000 words
Submission: Online via Moodle
Format: One file in .doc or .docx (MS Word) format
Objectives
This assessment item relates to learning outcomes 1, 2 and 3 as stated in the course profile.
Details
This assignment is to be submitted in one (1) Word document only. This assignment is to be submitted online via Moodle by the due date stated. It is suggested that where necessary you put your calculations into columns or tables to improve readability in the assignment document
The method of referencing to be used in this assignment is the Australian Guide to Legal Citation (AGLC) 3rd Edition referencing method. Additional information regarding this method is available through the library and the Academic Learning Centre. When making a reference, cite the original source or authority in preference to a secondary source such as the textbook, especially when you are discussing various sections of legislation. This means you should make reference to legislation, cases and Tax Rulings as a priority to back up any arguments that you make in your
assignment.
Extensions policy – The university policy on extensions of time will be strictly enforced. Extensions will only be considered if made via the online system and based on medical or compassionate grounds. Any extension application should be made before the due date for submission. Medical conditions should be supported by a medical certificate, and, since students are expected to start the assignment early, temporary or last-minute conditions are usually not grounds for an extension.
Professionals are expected to manage their time to meet their obligations, so work or personal commitments are insufficient grounds for an extension.
Plagiarism
The university’s plagiarism policy will also be strictly enforced. If plagiarism is found, a minimum penalty is likely to be zero marks for the assignment. This assignment isthe only assignment for this course, and it carries a weighting of 40% of the total assessment for the course.
While the assignment is largely based on material covered, you are free to research and seek advice as widely as you find necessary – there are no limitations as to sources. However, you must make sure that sources are appropriately referenced.
Students must complete all questions in the assignment.
With reference to all questions – support the analysis in your answers where appropriate to the ITAA97, ITAA36, Tax Rulings and/or case law.
QUESTION 1
a) What topic does Taxation Ruling TR 2018/4 cover? 1 mark
b) Which Division of the Income Tax Assessment Act 1997 details available tax offsets? 1 mark
c) What is the top tax rate applicable to a resident taxpayer in the 2018/19 tax year? 1 mark
d) Give one example of an asset that is exempt from capital gains tax, including its legislative reference? 1 mark
e) What does the CGT event B1 s104-15 tax? 1 mark
f) Write my Essay Online Writing Service with Professional Essay Writers – Explain the formula contained in s4-10(3) ITAA 1997? 1 mark
g) Write my Essay Online Writing Service with Professional Essay Writers – Explain the significance of the High Court case, FC of T v Day 2008 ATC 20-064 in the topic of deductions? 4 marks
h) Write my Essay Online Writing Service with Professional Essay Writers – Explain in your own words the difference between marginal rate of tax and average rate of tax? 5 marks
i) Write my Essay Online Writing Service with Professional Essay Writers – Explain what a consumption tax is? 5 marks
Total 20 marks
QUESTION 2
Briefly explain the extent, if any, to which each of the following payments made by an Australian resident taxpayer during the current tax year would be an allowable deduction:
(a) Brett incurred interest expense on a loan he took out to pay employee
wages. The loan was secured against his personal home. 2 marks
(b) Julie incurred $500 in mobile phone charges for the year. She determined that her work related calls represented 60% of her total calls. 2 marks
(c) Sally paid $1,200 during the tax year to a babysitter to look after her children that she required in order to go work. 2 marks
(d) One of Jerry’s long term employees stole $20,000 worth of goods from the business during the tax year. 2 marks
(e) Expenditure incurred in contesting a local government election of $5,000
with $2,000 of that, spent on a big election party. 2 marks
Total 10 marks
QUESTION 3
a) Andy owns some land and grants a lease to Brian for five years, at a premium of $5,000. 3 marks
b) On the 11th January 2018, in exchange for the sum of $40,000 John granted to Farm Ltd, an option to purchase his 100-acre farm just outside Adelaide for the
sum of $800,000. John had purchased the farm 10 years ago. 4 marks
c) Jamie and Olivia purchase a house in January 2006. Immediately they rent it out for 2 years while they travel overseas. In January 2008 they occupy the house and
make it their main residence until they sell it in January 2018. They make a capital gain of $300,000. What are the CGT implications for Jamie and Olivia? 5 marks
d) Chris bought 12,000 shares in BHP for 45 cents on the 1 August 2018 and they are now trading at $1.56. The same day he also purchased 5,000 shares in Westfarmers for $5.20 and they are now trading at only $2.10. Chris sells both his BHP and Westfarmers shares on the 30 June 2019. Calculate the net capital gain that Chris would record in his 2018/19 tax return. 8 marks
Outline the CGT consequences for the 2018/19 tax year and state if the 50% discount is applicable to the above transactions?
Total 20 marks
QUESTION 4
Various taxpayers receive the following during the 2018/19 income tax year:
a) A prize of $2,000 for the best TV advertisement of the year. 3 marks
b) $500 received by an employee from an employer for costs incurred to travel to Sydney for work. The employee bought a return ticket on sale for only $120 and stayed with a friend while in Sydney. One of the conditions of the work related trip was that the employee could keep whatever remained of the $500 as long as the work required to be performed in Sydney was completed.
3 marks
c) An iphone worth $1,000 from a client. 3 marks
d) $10,000 awarded as damages for personal injuries incurred by an individual in a car accident. 3 marks
e) A taxpayer buys a share during the year for $5. On the 30 June, the taxpayer still owns the share but it is now trading at $7.50 3 marks
REQUIRED:
Homework help – Discuss the assessability or not of the above amounts. Total 15 marks
QUESTION 5
Nisu arrives in Australia on 30th December 2018 from Nepal. He is enrolled in the Masters of Accounting Program at CQU Sydney campus. He comes to Australia from Nepal with the intention of studying for three years in Australia. Nisu manages to get a part-time job working in a bookshop with one of his roommates. There are four students that share the rental of a house not far from the university. Nisu makes lots of friends, joins the local soccer team and is doing well with his studies and job.
However, on the 30 June 2019 he has to return to Nepal due to a family
commitment. He unfortunately has to withdraw from university with no prospect of returning.
REQUIRED:
Homework help – Discuss the factors that will be taken into account in determining if Nisu would be considered a resident of Australia for income tax purposes for the 2018/19 income year. Total 15 marks
Assessment criteria Evaluation Research Topics – Criteria
These criteria are a general guide as to the standard expected at the various levels.
Characteristics indicative of the respective levels of achievement in the assignment are as
follows. It is not necessarily the case that all these criteria will be met at a particular
standard as there may be a superior performance on one of the criteria and not so
satisfactory performance on another.
High distinction standard
• The answer is very well written and clearly expressed
• There is a demonstrated appreciation and understanding of the issues involved
• The answer is well structured and logically organised
• Demonstrated mastery of referencing system
• There is evidence of a comprehensive analysis of the issues
• Conclusions are backed by well-reasoned arguments demonstrating a detailed
insight and analysis of issues
• Comprehensive coverage of all relevant issues
• References are made to the appropriated legislation for particular issues
• Statutory provisions are analysed and interpreted correctly
• The legislation is applied to the particular fact situation in a competent manner
• Consideration is given to the operation of the common law
• There may be consideration of issues not raised in the tutorials and answer guides
Distinction standard
• The answer is well written and expressed
• The answer is structured and logical
• The issues have been reasonably well identified and appreciated
• There is correct use of referencing
• Issues have been analysed
• Reference is made to all appropriate legislation, although the analysis and
interpretation is not as detailed and reasoned as for the high distinction standard
• The effect of the common law is considered
• There is a comprehensive coverage of the issues
• Occasional errors of law and legal reasoning may still be present
Credit standard
• The answer is generally well written and expressed
• The answer is structured and sequential
• Referencing is satisfactory
• Issues are identified and addressed
• There has been an attempt to analyse some of the issues
• The coverage of issues is reasonably comprehensive often with a good treatment
and analysis of particular points
• Errors of law and incorrect reasoning may sometimes be present
• Statutory interpretation may require improvement
• Depth of treatment is often lacking in some of the issues
Pass standard
• The answer is able to be followed and understood
• The answer could perhaps be better organised and structured
• The referencing may need improvement
• Issues may need to be identified and addressed in more depth
• Analysis when present may be incorrect
• Some familiarity with the legislation and its application is demonstrated
• Sometimes the conclusions reached are simple
• There may be several errors of law
• There may be quantities of material of marginal relevance included in the answer
Fail standard
• The answer may be significantly short of the required length
• The written expression is poor and difficult to understand
• The answer is poorly organised
• There has been a failure to identify and address the issues in the question
• Referencing is generally inadequate
• There is a lack of familiarity with the legislation and its appropriate application
• The reasoning and application demonstrated is poor
• Frequently there is much irrelevant material
MARKING
All parts of the assignment will be marked in accordance with the university’s Grades
procedure (which can be accessed via the Course Profile). The following marking rubric
incorporates that procedure.
MARKING RUBRIC GRADE MARK
GRADE – HD
MARK – 85%+
CRITERION Demonstrates proficiency in all the learning outcomes of the unit; work is well
read or scholarly.
COMMENT: Here, the student will have done everything well and formulated their answer in
a tight, efficient, thoroughly professional manner. Their explanations and arguments will
have a strong logical flow and be convincing. Their research will be thorough.
GRADE – D
MARK – 75-84%
CRITERION Demonstrates awareness and understanding of deeper and less obvious aspects
of the unit, such as ability to identify and debate critical issues or problems, ability to solve
non-routine problems, ability to adapt and apply ideas to new situations. COMMENT: The
student will demonstrate this by achieving all the outcomes for a Credit, but also some of the
higher level standards for a High Distinction.
GRADE – C
MARK – 65-74%
CRITERION Demonstrates ability to use and apply fundamental concepts and skills of the
unit, going beyond mere replication of content knowledge or skill to show understanding of
key ideas, awareness of their relevance and some use of analytical skills.
COMMENT: Learning involves not only knowing principles or concepts but also the ability to
apply them to a real-life situation.
GRADE – P
MARK – 50-64%
CRITERION Demonstrates the learning outcomes of the unit, such as knowledge of
fundamental concepts and performance of basic skills; demonstrates sufficient quality of
performance to be considered satisfactory or adequate or competent or capable in relation
to the learning outcomes of the unit.
COMMENT: Students who get a mark in this range usually demonstrate some knowledge of
principles and concepts, but do not explain or apply them accurately. Answers often look like
little more than a summary of what someone else has written.
GRADE – F
MARK – 40-49%
CRITERION Fails to demonstrate the learning outcomes of the unit.
COMMENT: Students in this range usually make some effort to perform the assignment task
but fail to achieve what is prescribed for a Pass.
GRADE – Low F
MARK – <40%
CRITERION COMMENT: Students in this range usually fail to properly carry out the
instructions or fully perform the tasks specified in the assessment.

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