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HI6028 Taxation Theory, Practice and Law
T1 2021
Individual Assignment
Holmes Institute

Purpose of the assessment (with ULO Mapping)

Students are required to follow the instructions by your lecturer to confirm any relevant information. You also need to follow any relevant announcement on Blackboard to confirm the due date and time of the assignment.

The individual assignment will assess students on the following learning outcomes:

1. Demonstrate an understanding of the Australian income tax system, the concept of FBT, Ordinary Income, deductions, general anti-avoidance provisions and income tax administration. (ULO 1).
2. Identify and critically analyse taxation issues. (ULO 2).
3. Interpret the relevant taxation legislations and case law. (ULO 3).
4. Apply taxation principles to real life problems. (ULO 4).

Assignments’ Instructions and Requirements

Question 1

(Marks - 10)

Calculate Total Assessable Income, Taxable Income, Tax Liability, Student loan (HECS), Medicare Levy, and Medicare Levy Surcharge if applicable, for the taxpayer (Susanne) with the information below:

• Susanne is a single and an Australian resident plans to lodge a tax return for the tax year 2020 2021.
• Her total taxable income is $90,000 (Including tax withheld).
• She does not have private health insurance.
• Susanne has a student loan HECS outstanding for her previous study at Sydney University of $53,000.
• Her employer pays superannuation guarantee charge of 9.5% on top of her salary to her nominated fund.
• Susanne earned a passive income of $10,000 from the investments in shares in the same tax year.

Hint: The following website can be used to cross-check your answer, but you need to provide the detailed calculations, rates and explanations with the screenshots of rates from the ATO website.

https://www.paycalculator.com.au/

Question – 2

Marks (7.5 +7.5 =15) Part-A

What is ‘fringe benefit tax’ (FBT)? Explain at least five main salient features of the FBT?

Part -B

Calculate the taxable value of the fringe benefit using the statutory formula in the following case context:

Carron provides his employee (Rabbie) with the use of a Nissan Xtrail car 196 days during the FBT year. During the period, the car travelled 15,000 km. Carron purchased the car last year for $45,000. Rabbie contributed $1,500 towards the cost of running the car and has provided Carron with relevant documentation.

Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard.

Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.

Table 1: Six categories of Academic Integrity breaches

Source: INQAAHE, 2020

If any words or ideas used the assignment submission do not represent your original words or ideas, you must cite all relevant sources and make clear the extent to which such sources were used.

In addition, written assignments that are similar or identical to those of another student is also a violation of the Holmes Institute’s Academic Conduct and Integrity policy.

The consequences for a violation of this policy include a range of penalties varying from a 50% penalty through suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and your history of academic misconduct issues.

All assessments will be automatically submitted to SafeAssign to assess their originality.

For further information and additional learning resources please refer to your Discussion Board for the unit.