Three of the following: wages and salaries, bonuses, commissions, government support payments, investments, interest and dividends and capital gains.
100
What is a TFN?
A TFN (tax file number) is a unique nine-digit number issued by the Australian Taxation Office.
100
What are the dates of the Australian financial year?
In Australia the financial year starts on 1 July and runs until the following 30 June.
100
How much is the GST and what is it on?
It is 10% added on to the cost or 1/11th of the final selling price. It is a tax on the supply of goods and services in Australia and on most goods imported into Australia for sale.
100
Outline what is meant by an 'amendment to a tax return'.
It is a request to correct a straightforward error in a return or assessment, for example, not including bank interest.
200
Define the term 'assessable income'.
It is income on which income tax must be paid.
200
Name three consequences if you do not have a TFN.
Three of the following: your employer has to deduct 46.5% withholding tax from your wage or salary; you cannot defer your higher education fees; your dealings with the ATO may be slower; Centrelink will generally not pay you an allowance.
200
What is a 'payment summary'?
Your employer issues you a payment summary after the end of the financial year. It shows how much you earned and how much tax was deducted from your income, plus any other deductions.
200
What items are GST free?
Basic foods, most education, child care and certain health goods and services.
200
Explain when a taxpayer could lodge an objection.
Objections usually result from a disagreement between the ATO and the taxpayer about an interpretation of the taxation laws.
300
What is a 'franked dividend'?
It is a dividend paid by an Australian resident company from profits from which company tax has already been paid.
300
What needs to be filled in when you start work in a job?
You need to fill in a Tax file number declaration form.
300
List two ways you can submit your tax return.
Two of the following: myTax, completing a paper return and lodging it by mail or through a registered tax agent.
300
What is a 'capital gain'?
It is where you sell or dispose of a CGT asset for more than what it cost to purchase.
300
Outline what the Taxpayers' Charter contains.
It outlines the relationship that the ATO seeks with the community. It states that the ATO respects the taxpayer's right to make a complaint.
400
What is 'tax evasion'?
Tax evasion is when a person deliberately lies to the ATO to reduce the amount of tax payable (or has not paid tax that is due).
400
What is meant by 'pay as you go (PAYG) withholding'?
It is the amount of tax your employer will deduct from your earnings and send to the ATO.
400
Explain the pre-filling service.
If you are using myTax, your employer, banks, companies and government agencies will provide information to the ATO that can be automatically downloaded into your tax return.
400
What taxes are there on overseas travellers?
Departure tax and customs duty.
400
Outline the first two steps a taxpayer should take when they have a complaint.
Firstly, try to sort the problem out with the tax officer you have been dealing with; secondly, talk to that officer's manager.
500
Define the term 'tax minimisation'.
Tax minimisation is when a person legally reduces the amount of tax payable by having a taxation strategy in place.
500
How does being under 18 years of age affect the tax you pay?
If you receive income that is not the result of your own work, for example, share dividends, bank interest or from a family trust, it is called unearned income and may be taxed at a higher rate.
500
Explain what is meant by 'self assessment'.
Self assessment means that the ATO uses the information you provide to make an assessment.
The ATO may later check the details with you and against other sources of information.
If you haven’t declared all of your income, you must pay the tax you owe and may have to pay a penalty.
500
What is the situation if you make a capital loss?
No tax is payable on a capital loss. However, it can be used to reduce a capital gain when another asset is sold or disposed of.
500
If you cannot pay a tax debt on time, what should you do?
Contact the ATO as soon as possible to discuss your situation. The ATO will work with you to solve the problem.