Manasporn KRUEAWONG FNSACC502 NAM PDF

Student: Manasporn KRUEAWONG
Trainer: Amin Amin

Company: Central College Online
Level 5 127 Liverpool Street
Address:
Sydney, NSW
Telephone:
FNSACC502: Prepare tax documentation for

Unit Title:
individuals
Date of assessment commencement: 31/01/2017

Date of completion: 24/03/2017
Formative assessments
Activity 1
31/01/2017 10:27PM
A new client indicates they are self-employed. They are paid by one company but claim to work as a
contractor.
Services are provided from the client’s home office and the client wants to claim the benefits that accrue
from that classification.
What questions would you ask to clarify the client’s employment status? Explain why you would ask these
questions. 200–220 words.
A new client indicates they are self-employed, are paid by one company but claim to work as a
contractor.
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Trainer Comments
24/03/2017 08:30PM Satisfactory
Activity 2
31/01/2017 11:04PM
One of the approaches the ATO uses to ensure compliance is data matching. What is it and how does
maintaining records assist the taxpayer in complying with the requirements of the ATO? 80–120 words.
maintaining records assist the taxpayer selling data matching program is prepared and published in
Student Name: Manasporn KRUEAWONG

Unit: FNSACC502 - Prepare tax documentation for individuals
accordance with these guidelines.
1 Data matching guidelines.
2 Overview.
3 Purpose and objectives.
3.1 Purpose The purpose of the online selling data matching program is to protect businesses from unfair
competition by identifying taxpayers who are not complying with their taxation obligations.
3.2 Objectives Promote voluntary compliance and increase community,Identify those individuals and
businesses,Identify those apparently operating a businesses,Gain insights from the data that may help to
develop and implement treatment,Obtain intelligence to increase the ATO’s understanding.
4 Agencies and entities involved.
4.1 Matching and primary user agency.
4.2 Source entities.
5 Data issues.
5.1 Data elements.
5.2 Number of records.
5.3 Data quality
5.4 Data integrity.
5.5 Data security.
6 Discrepancy matching.
6.1 Matching process The identity matching process is described above under ‘Data integrity’ and is the
first step in the matching process.
6.2 Quality assurance Quality assurance processes are integrated into ATO processes and computer
systems and are applied throughout the data matching cycle.
7 Previous programs.
8 Action resulting from the program.
9 Time limits applying to the conduct of the program.
10 Public notice of the program.
11 Relationship to lawful functions.
12 Legal authority.
12.1 ATO legislation.
12.2 Privacy Act.
13 Alternative methods.
14 Costs and benefits.
14.1 Costs The costs of the online selling data matching program are expected to be minimal in relation
to the revenue protected.
14.2 Benefits Maintaining community,Integrity of the taxation,Enabling enforcement activity and recovery
of taxation revenue,The ATO having a greater understanding of the businesses,Assisting the ATO to
promote voluntary compliance.
Trainer Comments
Activity 3
31/01/2017 11:10PM
From where would you gather current information concerning assessable income and allowable
deductions? 60–80 words.
Most expenses you incur in running your business are tax deductible. You claim these deductions in the
annual tax return for your business or, if you’re a sole trader, in your personal tax return.
You can only claim expenses that are directly related to earning your assessable income.
If you make a purchase or use an asset for both business and private purposes, you can only claim a

deduction for the business portion of the expense. If you use an item in your business for only part of a
year, you may need to restrict your claim to the period it was used for the business.
You can't claim a deduction for the goods and services tax (GST) component of a purchase if you can
claim it as a GST credit on your business activity statement. You also can't claim.
Trainer Comments
Activity 4
01/03/2017 08:13PM
Use the retail inventory method to calculate the value of ending inventory for an organisation which has:
An opening inventory at cost of $850,000 and a retail value of $2,100,000.

Purchases for the year totalled at cost $650,000 and the retail value of the purchases is
$1,000,000.
Sales for the year at retail price totalled $2,650,000.
Mark-ups of $80,000 and markdowns of $35,000 during the year.
Inventory helps ensure that an organization will have the right products available at the right time so
consumers can make purchases on demand. An inventory system that has an accurate count can
evaluate the monetary value of an organization’s inventory. The method of inventory management used
by the organization can help assess the proper management of the organization’s inventory.
Organizations use the retail inventory method to determine the ending inventory value in retail.
Retail Inventory Method
An inventory system provides an organization with a comprehensive account of available items and the
monetary value of these inventory items. The retail price is the price the consumer pays when purchasing
an inventory item. Therefore, the retail inventory method values the inventory according to this retail
value. The retail inventory method evaluates the ending inventory or cost of goods sold for the
organization. This inventory system also requires the organization to consider different factors such as
discounts, sales, markups, markdowns and loss of inventory.
Activity 5
31/01/2017 11:23PM
What are the responsibilities of the tax agent with regard to identifying and resolving discrepancies? 100–
150 words.
The tax agent with regard to identifying and resolving discrepancies an important and enduring applied
taxation research question has been one of finding effective interventions to improve compliance.
Attention is typically focused on taxpayers who take responsibility for preparing their own tax returns. In
this second article drawn from the Australian Determinants of Australian Taxpayer Compliance study the
role of the tax agent is investigated. A sample of compliant and non-compliant taxpayers was selected
according to their historical tax return profiles and risk probability and 839 responded. A group of 62 tax
agents also responded. A questionnaire encompassing behaviours and values, beliefs and attitudes,
competency, fairness, tax knowledge, satisfaction and lifestyle was administered by mail. The study
identified several factors related to compliance, the role of tax agents, and relationship between
taxpayers and tax agents. These factors included taxpayers’ experience of ATO client service, their
perceptions that tax was difficult and the necessity to use a tax agent to complete tax returns correctly.
The results indicated that tax agents served three key roles: providing tax advice, correct tax return
preparation and lodgement and risk management for tax minimization. An implication of these results is
that the ATO should treat tax agents as an increasingly important part of the compliance process.

Trainer Comments
Activity 6
04/03/2017 08:16PM
A taxpayer pays $1,800 for six months insurance. The premium is paid on January 31, 20XX.
Using the balance sheet approach prepare the account to reflect this transaction and prepare the journal
entries for the end of the first month.
Prepaid insurance
Date Explanation Debit Credit
31 Jan 20XX Prepaid insurance 1,800
1,800
For the end of the first month prepare these journals.
General journal
Date Account title and description Debit Credit
31 Jan 20XX General Journal 1,800
Expired insurance
Date Explanation Debit Credit
31 Jan 20XX
Expired insurance 1,800
Prepaid insurance
Date Explanation Debit Credit Balance
31 Jan 20XX Prepaid insurance 1,800
3,600
Trainer Comments
24/03/2017 08:31PM Wrong answer
Activity 7
24/02/2017 11:10PM
1. A client has receipts for $50.00 from donations provided to door to door charity collectors. Can the

client claim a tax deduction for this amount? Why? 40–50 words.
As a general guideline, the ATO will allow a deduction for insurance premiums if it can be shown that the
insurance cover relates to earning assessable income. Income protection insurance is one example of the
kind of cover that may provide an allowable tax deduction for premiums – such claims have been allowed
by the ATO in certain circumstances, even though having the insurance policy does not of itself “earn”
income for the taxpayer.
It is always advisable for taxpayers to get specific advice for their situation, but deductions have been
allowed for the above mentioned insurance products, even though the cover may include some capital
assets – that is, the value of the item covered (such as a vehicle that is essential to keep the business
running) as well as the income-earning component of that asset.
For a business, cover for “key person” or “key employee” insurance can seem a straight forward case for
deduction rights on the premium, but this may not always be the case.
2. Is a taxpayer entitled to a spouse rebate if they have no children? 60–80 words.
The spouse without dependent child or student tax offset calculator will help you work out if you can
claim this offset in your tax return.
The calculator will help you work out:
•whether you can claim the spouse without dependent child or student tax offset
•the amount of offset you can claim in your tax return.
This calculator will also help you to work out if you can claim for your spouse who is either an invalid or
cared for an invalid.
If you had a dependent spouse for part of the year and a different dependent spouse for another part of
the year,
you will need to use the calculator for each occurence - once for each circumstance - and then add the
results.
3. A client wants to claim $300 for work-related expenses and says they might not have spent that
amount but because it does not need to be substantiated they will still make the claim. What advice
would you provide? 80–100 words.
If client wants to claim $300 for work-related expenses and says they might not have spent that amount,
but they will still make the claim, you should provide an advice not to claim for these expenses.
4. Using the table showing taxable income and the tax payable calculate the tax liability for an individual
whose taxable income in the 2012–13 financial year was $50,000. The Medicare levy in this example is
calculated at 1.5%
Taxable income Tax on this income
0–$18,200 Nil
$18,201–$37,000 19c for each $1 over $18,200
$37,001–$80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001–$180,000 $17,547 plus 37c for each $1 over $80,000
The using table showing taxable income and the tax payable calculate individual income in the 2012-13
financial category of deduction recorded in tax return data related to rental deductions. Deductions were
larger than income on average for rental properties across all income groups. The highest percentage
losses were among those with incomes (net of their rental loss) between $55,001 and $80,000 with
deductions exceeding income by more than.
Trainer Comments

24/03/2017 08:31PM Wrong answer
5. What is meant by a tax liability? 80–100 words.
Debt to a government incurred by a tax payer as accrued or assessed taxes. Tax liability is shown as a
short-term liability in financial statements, and takes precedence over all other liabilities.
Activity 8
04/02/2017 01:51PM
A new client has asked for advice on the documentation that will be required for the preparation of their
first tax return in Australia. What advice would you provide and what documents would be needed? 250–
260 words.
the first tax return in Australia. The preparation provide documents would be if this is your first year
lodging a tax return, follow these tips to make tax time simple.If you need help with English, you can
phone the Translating and Interpreting Service.
The easiest and fastest way to lodge your tax return is online using my Tax.
To lodge online you'll need a my Gov account linked to the ATO.
As a first time lodger, there are a few steps you need to follow:
Step 1: Have your tax file number (TFN) handy and one of the following identity documents: your birth
certificate, passport or citizenship certificate.
Step 2: Create a my Gov account.
Step 3: Call us on 13 28 61 and press 5 at the prompt to get your unique linking code to verify your
account. Each unique code will expire after 24 hours.
Step 4: Sign in to my Gov, go to the Services page and link to the ATO. Select I have a linking code and
follow the instructions as prompted.
Watch the video below on how to create a my Gov account and link to the ATO.
Trainer Comments
Activity 9
04/02/2017 02:02PM
What is moderation of a decision-making process and why is it valuable? (120–150 words) If necessary
conduct independent research.
Your career relies on you making sound decisions every day. You’re asked to balance difference needs
and interests, factor in uncertainties and meet deadlines to make the most of opportunities.
Many people can struggle to make complex decisions where the stakes are high and there is no ‘right’
answer. What should you do when the way forward is unclear and, no matter what options you see,
something has to give?
The Ethical Professional Program shares insights from psychology, behavioural economics and
neuroscience, giving you practical tools to help with decisions in the workplace.
This online and face-to-face course is for financial services professionals, using real-world examples and

insights tailored to financial advisers, brokers, bankers and those who work alongside them.
why is it valuable?
Moderation is the process of teachers sharing their expectations and understanding of standards with
each other in order to improve the consistency of their decisions about student learning.
Making consistent decisions over time
Making consistent, reliable and valid decisions across different points in time is important when schools
report student progress or compare cohort data with historical information.
Consistent moderation over time can prevent this in a number of ways.
Moderation supports assessment for learning.
Learning conversations.
Teaching conversations.
Partnership conversations.
Assessment practice improves.
Trainer Comments
Activity 10
04/02/2017 08:37PM
1. Tax agents have a responsibility to ensure that their clients’ returns are prepared within the
established timelines. What role do timelines have in satisfying client expectations and how would you
develop a timeline to fulfil your obligations? 120–150 words.
Tax agents are prepared established timeline to fulfil your obligations.

Clients will always recall the experience of whether expectations were met, their timelines respected and
their goals achieved. As INC.com suggests, managing expectations continues to be one of the most
underrated and underutilized skills there is. However, if done properly, it can be one of the most
advantageous.
A return to work plan is a simple plan for managing a worker’s injury or condition. A return to work plan
details the agreed actions, goals and assistance required to support the worker to remain at work or
return to their pre-injury employment. An approved return to work plan is one that both the worker and
the worker’s employer have agreed to. It is also important to ensure that the Primary Treating Medical
Practitioner has seen and given consent to the plan. Plans need to be consistent with the medical
condition and complement treatment.
Legislation requires a return to work plan to be prepared where a worker is likely to be incapacitated for
work for between five and 28 days. A return to work plan must be prepared within five days of the worker
becoming incapacitated for more than five working days (i.e. 10 days after the worker becomes
incapacitated). Applying the principle of early intervention, it is best practice for return to work plans to
be prepared as soon as practical following the injury. While it is not a legislative requirement, a return to
work plan should also be prepared where return to work strategies are required as part of an injury
management plan. Where return to work plans are prepared for this purpose, the abovementioned
timeframes do not apply. This practice is explained in more detail in the following sections.
2. A client informed you that they took an overseas trip for business purposes, On the basis of it being a
legitimate expense they ask for the costs to be included as a deduction.
When the client came to review and sign the tax return they showed you photographs of the family
sightseeing in Europe. What would you do at this point? 120–150 words.

Generally any expenditure incurred in connection with the business shall be allowed as expenditure for
the financial year.Remember that expenditure.
be prepared to offer documentation — even in the form of handwritten notes — to back them up.
"Make sure to keep track of all receipts and records. The easiest and most efficient way is to write on the
back of each slip the following: reason of the expense, name of the person you met, the location and
date," says Paul Golden, spokesman for the National Endowment for Financial Education.
If you're an employee traveling for business and your company doesn't reimburse you for all your
expenses, you can deduct any out-of-pocket expenses that exceed 2% of your adjusted gross income. If
you're self-employed or a small-business owner, you don't have to reach that threshold.
If the client came to review and sign the tax return photographs of the trip were shown to you that
showed the client and the family sightseeing in Europe, then the tax return is not possible and the client
gave the incorrect information to save his money, so the tax return shouldn't be processed at this point.
Trainer Comments
Activity 11
24/02/2017 10:57PM
One of the principles for the code of professional conduct for agents, states:
‘You must take reasonable care in ascertaining a client’s state of affairs, to the extent that ascertaining
the state of those affairs is relevant to a statement you are making or an activity you are undertaking on
behalf of the client.’
1. Describe (150–180 words) what this means to you in terms of explaining the impact of taxation on the
individual.
The Code of Professional Conduct (Code) regulates the personal and professional conduct of all registered
tax agents, BAS agents and tax (financial) advisers.
The Code sets out principles under five separate categories:

•Honesty and integrity
•Independence
•Confidentiality
•Competence
•Other responsibilities.
For more information about the Code, click on one of the links below based on your registration type.
Tax Agents,BAS Agents,Tax (Financial) Advisers
2. Who is likely to be held responsible if a tax agent wilfully includes false information, of which the client
has no knowledge, in a tax return? 150–180 words.
Which the client has no knowledge, in a tax return

The answers are pretty simple, finding those who are actually legally permitted to do so and who have the
adequate knowledge and skill to do it right.
Tax agent to be responsible information organisations that are permitted to charge a fee for preparing tax
returns are Registered Tax Agents. A Registered Tax Agent has applied to the Australian Governments
Tax Practitioners Board (“TPB”), met rigorous educational, experience and ethical standards, met
professional indemnity insurance requirements AND meets the minimum level of professional
development and ongoing training each year. You can follow the link here to their website and use it to
confirm your advisor is a Registered Tax Agent.

We are here to help! We guarantee you will receive your maximum legal refund, plus you will receive a
free wealth creation book which will show you the fundamental principles of building wealth and
achieving the financial future you desire.
3. An individual who is not an existing client approaches you in early November stating that their income
tax return for the financial year has not been prepared or lodged.
The individual is aware that tax agents can lodge later than the October 31 deadline so requests that you
prepare and lodge the tax return to avoid penalties. What advice do you give this individual? 100–120
words.
If an individual who is not an existing client approaches you in early November stating that the income
tax return for the financial year has not been prepared or lodged, and if he is aware that tax agents can
lodge later than the October 31 deadline so requests that you prepare and lodge the tax return to avoid
penalties, then we can advice him to lodge the tax return next year, because the deadline has already
past.
Trainer Comments
Activity 12
04/02/2017 08:49PM
Describe (350 words) four expectations the ATO has of taxpayers.
A pilot program allowing taxpayers to self-assess by giving big four accounting firms –rather than
Australian Taxation Office officers – the ability to sign off on their information has been successful and
could be rolled out more widely, the tax authority says.
The ATO has run a pilot – the external compliance assurance process that has allowed a sample of
companies, with annual turnover of between $100 million and $5 billion, the choice of using a registered
company auditor or the ATO to clarify factual matters identified by the ATO.
They were used to "reconcile and agree factual data in the financial and tax accounts of large
businesses", not undertake an audit, the ATO said.
The pilot involved 56 taxpayers and assured about $1.1 billion in income, deductions and tax losses, the
ATO said.
Based on the feedback of the companies and auditors that participated, the ATO said it had been a
success and could be rolled out for companies earning less than $100 million turnover.
"The pilot proved that these approaches can offer an enhanced client experience, reduce red tape, offer
clients greater control over their business compliance obligations while providing certainty to clients
more quickly," the ATO said.
1>Resource pressure :
Tax Commissioner Chris Jordan has repeatedly said that ECAP is not an audit, but several people,
including former ATO staff, have been highly critical of allowing big four firms, which, for decades, have
been the architects of tax minimisation schemes, to conduct such assessments of taxpayer information.
2>Conflicts of interest :
However, the process has been criticised by ATO staff who say it's like "Caesar investigating Caesar", or
"giving the keys to the vault to the thieves".
3>Fewer fishing expeditions :
However, the ATO said "several taxpayers" had commented that the ECAP had rid the process of the "ATO
fishing net approach and zeros in on the specific issue clearly, giving taxpayers certainty of the ATO's
concern".
4>Fewer fishing expeditions :
"However there is potential for inclusion of ECAP in relation to the overall tailored compliance

engagement approach for all Public Groups & International taxpayers," it said.
Trainer Comments
Activity 13
04/02/2017 09:20PM
A client for whom you have prepared the current tax return approaches you for advice and support for an
audit covering the last five returns. You were not involved in the preparation of the previous four returns.
The client has written notice from the ATO regarding the audit. What advice will you provide and what
support will you give? (250–270 words)
How prepared the current tax return approaches.

When you receive our notification letter, you should review relevant records, tax returns and activity
statements. If you find a In most circumstances, we will tell you about a review or audit before we visit
you errors, bring them to our attention immediately. If you do this, any penalty may be reduced.
We send a letter, normally to the address where you have asked us to send your mail.
Sometimes we will contact you by phone first to arrange an interview time. Our letter will:
: tell you the name and phone number of the tax officer
: tell you will be dealing with n explain what we intend to cover and how long we expect it to take
: tell you know the information and records the tax officer will need to see at this stage
: tell you that you may have a representative present at any stage n
: tell you about your rights and obligations. If you need to consult with your representative, we will give
you reasonable time and opportunity to do so. We try to complete reviews and audits in the shortest
possible time. However, the time it takes will depend on how good your records are, the availability of
information, the complexity of the issues and your level of cooperation.
The client has from the ATO regarding the audit.

If we think you may not be complying with your obligations or do not believe a review can look into the
issues sufficiently, we conduct an audit. We may correct any discrepancies we find, which may mean you
owe us money. If you tell us about any errors and provide details to help us correct those errors
during an audit, we may reduce any penalty. If you tell us about any errors and provide details to help us
correct those errors before we notify you that we intend to conduct an audit, we may significantly reduce
any penalty.
Trainer Comments
Summative assessment 1
Question 1
05/02/2017 12:59PM
Describe (80–100 words) the distinction between legislative requirements and professional standards.
Professional standard is ethical or legal duty of a professional prescribed in the code of practice of his or
her profession, or as other professionals in the same discipline would in the same or similar
circumstances. Professional standards of practice and ethics for a particular field are typically agreed
upon and maintained through widely recognized professional associations. Legislative requirements are
sets of rules and restrictions for specific areas which are established by public authorities and are

mandatory for execution.
Trainer Comments
Question 2
05/02/2017 02:20PM
What part of the legislation provides details of how much income tax must be paid and what does it
state? 100–120 words.
The legislation provides details for paid tax of income part.

Australian residents
As an Australian resident:
•you must declare all income you earned anywhere in the world on your tax return
•you're entitled to the tax-free threshold – this means there is no tax on your income up to a certain
amount
•you'll generally pay the Medicare levy.
Australian residents with a tax file number generally pay a lower rate of tax than foreign residents.
If you're an Australian resident for tax purposes and you:
•have a temporary resident visa: most of your foreign income is not taxed in Australia. But we do tax
your income from short periods of work you do overseas while you are a temporary Australian resident
(see Foreign income exemption for temporary residents)
•receive foreign income: this income may be taxed in both Australia and the country from which you
received it. If you've paid tax in another country on your foreign income, you may be entitled to an
Australian foreign income tax offset
•receive income from a country that Australia has a tax treaty with: you can ask the tax authorities in
that country to reduce their withholding tax or to exempt you from paying tax in that country. You can do
this by supplying a tax relief form or a certificate of residency or status.
Foreign residents
If you are a foreign resident working in Australia:

•You declare on your tax return any income you earned in Australia, including: –employment income
–rental income
–Australian pensions and annuities, unless an exemption is available under Australian tax law or a tax
treaty
–capital gains on Australian assets.
Trainer Comments
Question 3
05/02/2017 02:29PM
Describe some of the potential consequences of failing to submit an income tax return on time. 80–100
words.
Some people say they work best under pressure and choose to procrastinate on important tasks like filing
taxes. Then there are those who simply forget to file by the April 15 deadline – or deliberately avoid doing
so.
Everyone makes mistakes, especially when under the stress of gathering documentation, crunching

numbers and lowering tax liabilities as much as legally possible. However, avoiding your annual tax
return obligations can result in costly consequences that extend beyond your bank account.
1. Late penalties
Considering the importance of filing your tax return, it's fair to expect some degree of penalty for failing
to file your taxes. If you are expecting an income tax refund, chances are you won't get the same level of
scolding from the Internal Revenue Service that others who owe money can expect to receive.
2. Delayed reimbursement
With spring vacations around the corner, you'll likely want to keep all the money you can. Those who wait
beyond the eleventh hour to file taxes and claim their refunds may not only get dinged with a late-filing
penalty, but holding up refunds does an equal disservice.
3. Forfeiture of tax refund
Just because you don't owe the IRS money doesn't mean you can keep your refund on hold indefinitely.
When you're owed a reimbursement from the government, its in no rush to pay you back. In fact, Uncle
Sam will give you three long years after the tax year for which you filed to claim your back tax refund.
4. Substitute for return
Individuals who fail to submit their tax return by the deadline or extension deadline, if applicable aren't in
the clear yet. In fact, the IRS will attempt to contact delinquent tax filers repeatedly and remind them to
file their tax returns.
5. Arrest
The consequences for ignoring an IRS bill can be a lot more dire than warning letters. After sending
multiple correspondences regarding an unpaid tax bill, the IRS will send a representative to your
residence or business to collect payment.
Trainer Comments
Question 4
05/02/2017 02:35PM
How do tax offsets differ from tax deductions and why are they used? 180–200 words.
A deduction is a reduction in your taxable income; it is not a direct decrease in tax owed.
For example, $1,000 in deductions will only reduce your tax owed by a percentage dependant on your
tax bracket. The benefit may be substantially smaller than the equivalent offset relative to the total
income earned.
So say you have $1,000 of deductions to claim and your income is $80,000. The deductions will reduce
your taxable income to $79,000, saving you $325 in tax. Your tax is not reduced by $1,000.
Deductions have to relate very closely to your income and many rules and regulations surround their
deductibility.
An offset (sometimes called a rebate) on the other hand, is a direct reduction in tax owed.
So if your tax payable is $500 but you receive a tax offset of $300, then your tax payable is only $200.
The rebate will reduce your tax bill dollar for dollar.
Most tax offsets are income tested and have certain restrictions.
So while deductions may have less of an immediately noticeable impact than offset, and tend to be job
specific where offsets are more likely to be means tested, they still can make quite a difference to the
size of your tax bill.
Some type of deductions which you might claim include motor vehicle kilometres, telephone use, clothing
expenses or tax agent fees.
Examples of tax offsets which you might claim include private health insurance offset, medical expenses
offset, low income offset or seniors and pensioners tax offset.
Trainer Comments

Question 5
05/02/2017 02:40PM
Why is maintaining records an integral part of satisfying income tax obligations? 180–200 words.
here is a legal obligation on you to ensure that when you complete an income tax return it is full and
complete. If you submit a return which is not full and complete, you may have additional tax to pay and
you may also incur surcharges and additional surcharges, as well as penalties.
Obviously, the more records and documentation you have about your income and any allowable
expenses or deductions then the easier it will be for you to complete your tax return and the likelihood of
your return being accurate will be increased.
In addition, if someone helps you to complete your return (such as an accountant) their job will be made
more straight forward if you keep (i.e. make) accurate and orderly records, maintain them regularly and
retain relevant documents. That may also help reduce the fees they charge for the work that they do.
If, after you have submitted your tax return, we have to make any enquiries, it will be easier for you to
deal with those enquiries if you have retained reliable records to refer to. This should save your time in
dealing with those enquiries and, once again, if someone is helping you deal with your tax affairs it should
also save their time and costs.
Before we are able to complete any enquiries, we may ask to see the records that you made and which
you used in completing your income tax return. If you can show that the records are complete, accurate,
well organised and were written up promptly, it is more likely that we will be able to be satisfied that your
return is accurate.
The purpose of this Statement of Practice is to help you decide whether the records you are keeping now
are sufficient to satisfy the rules set down in the Regulations. If you come to the conclusion that the
records you keep at the moment are insufficient to enable to you to comply with the Regulations then the
Statement may help you decide what additional records you need to keep. Clearly, if you do have an
accountant, or other professional adviser, you may wish to discuss with them what records they suggest
you should keep. The Statement also explains how long you have to retain your records for.
Trainer Comments
Question 6
05/02/2017 02:50PM
Where would you find the current tax tables and descriptions of fees and charges? 80–100 words.
Use these tips on banking at to save you paying fees and charges unnecessarily.
Visit Personal banking fees and charges to learn more.
This guide covers the fees that may apply for a range of our personal accounts and services. It only
applies to branded products and services unless we have specifically advised you otherwise. You can use
this guide to identify which fees may apply to you and ways you may reduce or avoid these fees.
•Section 1 details the fee structure for NAB Transaction and Savings accounts and NAB Visa Debit card.
•Section 2 details the fee structure for service fees.
•Sections 3-6 cover the remaining fees which could apply to your account including fees relating to loans
and lending, and government taxes and charges. We pass on government charges and taxes to
customers at the time they are payable. These taxes may change at any time.
There is a separate fees and charges guide for business banking products.
Trainer Comments

Question 7
05/02/2017 02:53PM
What is the Medicare Levy Surcharge (MLS) and who is required to pay it? 120–150 words.
The Medicare Levy Surcharge is an extra 1% to 1.5% levy paid by Australian taxpayers who don’t have
Private Hospital Cover and are considered by the Government to be high income earners.
The Medicare Levy Surcharge is in addition to the 1.5% Medicare levy (which is paid by most Australian
taxpayers) and aims to encourage individuals to take out Private Hospital Cover. The Medicare Levy
Surcharge currently applies to those Australian taxpayers who do not have private hospital cover and
who earn above $90,000 for individuals and $180,000 for couples or families, increasing by $1,500 for
each additional child after the first.
The surcharge aims to encourage individuals to take out private hospital cover, and where possible, to
use the private system to reduce the demand on the public system.
Currently, you have to pay the surcharge if you are:
•a single person with an annual taxable income for MLS purposes greater than $88,000 in the 2013-14
financial year or $90,000 in the 2014-15 financial year; or
•a family or couple with a combined taxable income for MLS purposes greater than $176,000 in the 2013-
14 financial year or $180,000 in the 2014-15 year. The family income threshold increases by $1,500 for
each dependent child after the first;
•and do not have an approved hospital cover with a registered health fund.
You must also pay the surcharge if you are a prescribed person with a taxable income over the threshold,
and have any dependents who are not prescribed persons and who are not covered by an approved
health cover policy as described above.
Trainer Comments
Question 8
05/02/2017 03:12PM
What is a deduction and what generally determines whether or not a deduction is allowable? 300–350
words.
Is a deduction generally determines whether.
Allowable deductions are a critical part of the income tax equation. Assessable income is reduced by
allowable deductions to determine taxable income. Allowable deductions fall into two broad categories,
general deductions and specific deductions.
Important considerations
As can been seen from 8-1 general deductions are dependent upon whether the loss or outgoing was
incurred in gaining or producing assessable income, or in carrying on a business for the purposes of
producing assessable income.
It is therefore important that assessable income was to be gained or produced. There are several tests to
determine whether a business is being carried on.
Further the ITAA legislation has been amended to restrict deductions for expenses in relation to non-
commercial business activities. Please refer to external references for clarification of this issue.
Expenses in relation to hobbies are not deductible, (and the income not assessable).
General deductions

(1) You can deduct from your assessable income any loss or outgoing to the extent that:
(a) it is incurred in gaining or producing your assessable income; or
(b) it is necessarily incurred in carrying on a business for the purpose of gaining or producing your
assessable income.
(2) However, you cannot deduct a loss or outgoing under this section to the extent that:
(a) it is a loss or outgoing of capital, or of a capital nature; or
(b) it is a loss or outgoing of a private or domestic nature; or
(c) it is incurred in relation to gaining or producing your exempt income or your non-assessable non-
exempt income; or
(d) a provision of this Act prevents you from deducting it.
A deduction is only allowed under the first positive limb if there is the requisite link or nexus between the
loss or outgoing and the activities that the taxpayer carries out to gain or produce its assessable income.
While the connection that is required to satisfy the nexus requirement has been accepted to be quite
broad, some connections are simply too remote to satisfy it. In this regard, it is useful to note that just
because an outgoing is necessarily incurred in order for the income to be earned does not automatically
mean that it was incurred in the production of assessable income. For example, a taxpayer who claimed
he was required to eat certain foods to be fit to earn assessable income as a footballer failed to show a
relevant nexus between his outgoings for groceries and his wages.
Trainer Comments
Question 9
05/02/2017 03:23PM
List seven organisational policies and procedures that would relateto the preparation of tax
documentation for individual taxpayers. 120–150 words.
Your preparer may take information directly from you or ask you to complete a questionnaire. Either way,
you’ll need time to gather and organize the information. Here are 10 steps to take before meeting for
your tax prep.
Tax-Prep List
1. Choose a preparer.
If you don’t yet have a tax preparer, now’s the time to find one. A great way to find a preparer is to ask
friends and advisors to make a referral.
2. Schedule an appointment.
The sooner you meet with your preparer, the sooner you can begin the process (even if you get an
extension, as discussed later). It is especially important to act promptly if you anticipate a refund so you
can receive your money promptly. If you wait too long to schedule an appointment, you may not get to
see your preparer before April 17,
3. Gather your information returns.
By the end of January, you should have received various types of information returns that you need. For
each form, verify that the information matches your own records.
4. Get your receipts together.
Which ones you need depends on whether you choose to itemize your personal deductions instead of
claiming the standard deduction. You can choose to itemize if this produces the greater write-off.
Unfortunately, the only way to know for sure is to determine the amount of your itemized deductions and
compare them with your standard deduction amount.
5. Gather records for charitable contributions.
If you made donations to charity and itemize your deductions, you need specific records to claim any
write-off. For example, for contributions of $250 or more, you need a written acknowledgment from the

charity stating the amount of your gift and that you did not receive anything (other than perhaps a token
item) in return. If you’re lacking an acknowledgment, contact the charity and ask for it. You need it in
hand by the time you file your return.
6. Brace yourself for tax law changes.
You don’t have to become a tax expert but it helps to know about new tax rules so you won’t be caught
off guard. The individual healthcare mandate brought in a slew of changes, including new forms for
claiming the premium tax credit for eligible individuals who purchased coverage through a government
Marketplace (exchange) and for figuring the shared responsibility payment for those who failed to carry
coverage and do not qualify for an exemption.
7. Make a list of personal information.
You probably know your Social Security number, but do you know the number for each dependent you
claim? Jot down this and other information addresses of vacation homes and rental property; dates you
moved; information about property you bought and sold, including dates, what you originally paid, what
you received on the sale and expenses you had needed to complete your return.
Trainer Comments
Summative assessment 2
Project 1
24/02/2017 11:28PM
1. Part 1
Write a 3,000 word paper explaining the key sources of information and data required to calculate taxable
income when preparing tax documentation for individuals and outline the key accounting principles and
practices relevant to the preparation of taxation documentation.
In the paper consider and describe:
consultation with clients

use of expert or specialist advice when necessary
the rules and principles of Australian tax law
the legislation, regulations and organisational policies and procedures that must be adhered to
ethical issues relevant to the preparation of tax documentation for individual taxpayers
concepts and acceptability requirements relating to income, assets, deductions, tax rebates and
offsets -that is, what should be included
different forms of taxation
procedures and timeframes for completing, recording and submitting documentation
The key sources of information and data required to calculate taxable income tasks will be designed to
reinforce and extend knowledge and skill competence within set and controlled parameters in accordance
with each competency unit's learning outcomes and performance criteria requirements, including the
setting of project and work based practical application tasks designed to provide evidence of competence
outcomes, within periodic and scheduled timelines. Students will be expected to demonstrate the
following required skills: - research and critically evaluate new or changed legislative requirements and
apply where relevant to the preparation of the client's tax documentation; - provide taxation advice to
clients in line with individual requirements; - identify legal entity tax data required to calculate taxable
income; - prepare tax documentation for legal entities that complies with: - Australian taxation law and
Australian Taxation Office (ATO) rulings and lodgement schedules; - accounting principles and practices; -
organisational policy and procedures; - present tax documentation to the client for verification and
approval. Note: If a specific volume or frequency is not stated, then evidence must be provided at least
once. Students will also be expected to demonstrate the following knowledge: - identify and explain

ethical considerations and legislative requirements relevant to the preparation of tax documentation for
legal entities, including: - conflict of interest; - responsibilities of tax agents including Code of Professional
Conduct obligations under the Tax Agent Services Act (TASA) and Tax Agent Services Regulations
(TASR);- government tax policy documents issued by Reviews, Treasury and Board of Taxation; -
explanatory materials in relation to legislation; - statutes; - court and Administrative Appeals Tribunal
decisions; - Commissioner of Taxation's interpretive guidance in Rulings and Determinations; - explain
critical and key elements of Australian tax law as it relates to tax documentation for legal entities such as
companies, trusts, partnerships and sole traders including: - the rules and principles of Australian tax law,
with an understanding of the legal environment in which these principles operate, basics of the legal
system, constitutional considerations and separation of powers; - the key aspects of income tax law
covering concepts of residence and source, related elements of international tax, assessable income,
deductions, tax rebates and offsets, and tax accounting; - the key aspects of taxes that extend the
ordinary income tax base, including relevant principles and application of the capital gains tax (CGT) and
fringe benefits tax (FBT) rules; - goods and services tax (GST); - taxation aspects of superannuation law; -
administrative aspects of the taxes identified above including documentation, tax collection and
withholding mechanisms, assessments, obligations, rulings, penalties and audits; - specific and general
anti-avoidance tax rules; - describe the key sources of information and taxable transactions data required
to calculate taxable income, including: - allowable deductions; - capital gains; - financial adjustments such
as write-offs and revaluations; - income; - payments; - purchases; - superannuation payments; - describe
the key features of organisational policy and procedures relating to the preparation of tax documentation
for legal entities; - outline the key accounting principles and practices relevant to the preparation of tax
documentation for the different types of legal entities.
Trainer Comments
2. Part 2
An existing client of many years provides the following information for you to complete their current tax
return.
Submit the completed return in a manner that would be accepted by the taxation office - an electronic or
hard copy return.
Your assessor can order the necessary forms from the taxation office.
Income
Employer: ABC Imports
Gross salary: $87,500
Allowances: Allowance for company logo clothing $1,250
Interest from term deposit A/C #123456: $400
Tax withheld: $20,325
Allowable work deductions $7,450 (receipts and log book supplied)
Union fees $450
Dry cleaning of work clothing $150
Non-working spouse and no children.

Private health membership was cancelled on July 1 st of the income year.
Use the table and the information provided to calculate the taxpayer’s taxable income and the liability for
income tax.
For this exercise, use the indicated tax rates, not those that are current. The point of this assessment
exercise is to show that you can correctly process a return and the currency of the applied figures is not
relevant. These figures are examples to be used for this activity and will not necessarily be accurate in
terms of current ATO requirements.
Assume the full allowance for company logo clothing has been spent and can be supported with tax
receipts.
Taxable income Tax on this income
0 - $18,200 Nil
$18,201 - $37,000 19c for each $1 over $18,200
$37,001 - $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000 $17,547 plus 37c for each $1 over $80,000
$54,547 plus 47c for each $1 over

$180,001 plus
$180,001
In this example calculate the Medicare levy at2%, or the Medicare Levy Surcharge at the rate of 1 to 1.5%
of taxable income.
Complete the calculation for each tax bracket and round all calculations to the nearest dollar. Do not use
the ATO website withholding calculator as that might provide a slightly different figure.
Submit the completed tax return. You must show that you can apply statute, regulation and precedent to
a client’s circumstances, develop options to resolve client related taxation matters and plan and
sequence your work correctly.
The largest category of deduction recorded in tax return data related to rental deductions. Deductions
were larger than income on average for rental properties across all income groups. The highest
percentage losses were among those with incomes (net of their rental loss) between $55,001 and
$80,000 with deductions exceeding income by more than 28%.
The second largest value tax offset is the termination payment offset. This offset was of very little value
to low and medium income groups, but was of significant value on average to high income earners. For
those who claimed this offset and had an income lower than $150,000, it was worth less than $4,000 on
average, whereas for those with incomes over $500,001, this offset was worth an average of over
$45,000.
Despite a greater average value of deductions and offsets to high income earners, overall the progressive
nature of the Australian individual income tax system is not significantly reduced.
Additional Evidence
Supporting evidence 1
This activity allows students to upload supporting documentation of prior learning that may count
towards the qualification criteria
Please describe the purpose of the file you're attaching, and then attach the file

Trainer General Comments

24/03/2017

08:33PM
The student has shown the competency.
Amin Amin has marked this enrolment as competent.
Activity 1, Question 1 Comment:
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Wrong answer
Wrong answer
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Question 1, Question 1 Comment:

Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Satisfactory
Project 1, Question 1 Comment:
Satisfactory
-----------------------
Competency Achieved


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Student: Manasporn KRUEAWONG

Trainer: Amin Amin

FNSACC502: Prepare tax documentation for

Date of assessment commencement: 31/01/2017

24/03/2017 08:30PM Satisfactory

Student Name: Manasporn KRUEAWONG

24/03/2017 08:30PM Satisfactory

Student Name: Manasporn KRUEAWONG

24/03/2017 08:30PM Satisfactory

An opening inventory at cost of $850,000 and a retail value of $2,100,000.

Student Name: Manasporn KRUEAWONG

24/03/2017 08:31PM Satisfactory

Date Explanation Debit Credit

31 Jan 20XX Prepaid insurance 1,800

For the end of the first month prepare these journals.

Date Account title and description Debit Credit

31 Jan 20XX General Journal 1,800

Date Explanation Debit Credit

Expired insurance 1,800

Date Explanation Debit Credit Balance

31 Jan 20XX Prepaid insurance 1,800

24/03/2017 08:31PM Wrong answer

Student Name: Manasporn KRUEAWONG

2. Is a taxpayer entitled to a spouse rebate if they have no children? 60–80 words.

Taxable income Tax on this income

$18,201–$37,000 19c for each $1 over $18,200

$37,001–$80,000 $3,572 plus 32.5c for each $1 over $37,000

$80,001–$180,000 $17,547 plus 37c for each $1 over $80,000

Student Name: Manasporn KRUEAWONG

5. What is meant by a tax liability? 80–100 words.

To lodge online you'll need a my Gov account linked to the ATO.

Step 2: Create a my Gov account.

24/03/2017 08:31PM Satisfactory

Student Name: Manasporn KRUEAWONG

Making consistent decisions over time

24/03/2017 08:31PM Satisfactory

Tax agents are prepared established timeline to fulfil your obligations.

Student Name: Manasporn KRUEAWONG

24/03/2017 08:32PM Satisfactory

The Code sets out principles under five separate categories:

Which the client has no knowledge, in a tax return

Student Name: Manasporn KRUEAWONG

24/03/2017 08:32PM Satisfactory

Describe (350 words) four expectations the ATO has of taxpayers.

Student Name: Manasporn KRUEAWONG

24/03/2017 08:32PM Satisfactory

How prepared the current tax return approaches.

The client has from the ATO regarding the audit.

24/03/2017 08:32PM Satisfactory

Student Name: Manasporn KRUEAWONG

24/03/2017 08:32PM Satisfactory

The legislation provides details for paid tax of income part.

If you are a foreign resident working in Australia:

24/03/2017 08:32PM Satisfactory

Student Name: Manasporn KRUEAWONG

24/03/2017 08:32PM Satisfactory

Student Name: Manasporn KRUEAWONG

24/03/2017 08:32PM Satisfactory

Student Name: Manasporn KRUEAWONG

24/03/2017 08:32PM Satisfactory

Is a deduction generally determines whether.

Student Name: Manasporn KRUEAWONG