Wages and salaries, bonuses, commission, government support payments, investments, interest and dividends and capital gains
List three sources of personal income.
100
A TFN (tax file number) is a unique nine-digit number issued by the Australian Taxation Office.
What is a TFN?
100
In Australia the financial year starts on 1 July and runs until 30 June the following year.
What are the dates of the Australian financial year?
100
It is 10% on the selling price. It is a tax on the supply of goods and services in Australia and on goods imported into Australia.
How much is the GST tax and what is it on?
100
It is a request to correct a straightforward error in a return or assessment, for example not including bank interest
Outline what is meant by an amendment to a tax return
200
It is income on which income tax must be paid
Define the term ‘assessable income’.
200
1. Your employer has to deduct 46.5% withholding tax from your wage or salary
2. You cannot defer your higher education fees
3. Your dealings with the ATO may be slower
4. Centrelink will generally not pay you allowance.
Name three consequences if you do not have a TFN
200
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.
What is a ‘payment summary’?
200
Basic foods, most education, child care and certain health goods and services
What items are GST free?
200
Objections usually result from a disagreement between the ATO and the taxpayer about an interpretation of the taxation laws.
Explain when a taxpayer will lodge an objection
300
These are dividends paid by an Australian resident company from profits from which company tax has already been paid
What is a ‘franked dividend’?
300
You need to fill in Tax File Number Declaration
What needs to be filled in when you start work in a job?
300
1. e-tax
2. completing a paper return and lodging it by mail
3. phone lodgement
3. via a registered tax agent
List three ways you can submit your tax return
300
It is where you sell or dispose of an asset for more than what it cost to purchase
What is a capital gain?
300
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.
Outline what the Taxpayers’ Charter contains.
400
Tax evasion is when a person deliberately lies to the ATO to reduce the amount of tax payable.
What is tax evasion?
400
It is the amount of tax your employer will deduct from your earnings and send to the ATO.
What is meant by Pay As You Go Withholding?
400
The taxpayer is responsible for providing information about assessable income and allowable deductions. This used by the ATO to work out tax due.
Explain what is meant by self-assessment.
400
Departure tax and customs duty
What taxes are there on overseas travellers?
400
Firstly, try to sort the problem out with the tax officer you have been dealing with, and secondly, talk to that officer’s manager.
Outline the first two steps a taxpayer should take when they have a complaint
500
Tax minimisation is when a person legally reduces the amount of tax payable by having a taxation strategy in place.
Define the term ‘tax minimisation’.
500
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.
How does being under 18 effect the tax you pay?
500
If you are using e-tax, your employer, banks, companies and government agencies will provide information that is automatically downloaded into your tax return.
Explain the pre-filling service.
500
No tax is payable on a capital loss. It can be used to reduce a capital gain when another asset is sold for a profit or gain.
What is the situation if you make a capital loss?
500
Contact the ATO as soon as possible. Which option the ATO will agree to, depends on negotiation between them and the taxpayer.
If you cannot pay a tax debt on time what should you do?