CA Program Core 4: Tax (Australia) study guide
CA Program Core 4: Tax (Australia) · Work through your exam, one topic at a time.
Core 4: Tax is one of the technical modules in the Chartered Accountants Program run by Chartered Accountants Australia and New Zealand (CA ANZ). It is designed for candidates who have completed the foundational study requirements and are now building the applied tax knowledge expected of a chartered accountant in practice or in business. The CA Program Core 4: Tax (Australia) study guide has 10 sections and about 3,038 words.
01The Australian Tax System: Structure, Sources and Policy
Australia's tax system is built on a constitutional division of power: the Commonwealth relies principally on s 51(ii) of the Constitution, while the states levy land tax, payroll tax and stamp duty. Candidates must know the hierarchy of sources - statute (ITAA 1936 and ITAA 1997), case law, ATO public rulings and determinations, and administrative practice.
331 words, about 2 min02Tax Policy and Administration: Assessment, Review and Compliance
Candidates must understand the assessment cycle: lodgment of returns, self-assessment, notices of assessment, amendment periods (commonly two years for individuals and four years for others), and the Commissioner's power to make default assessments. Know the taxpayer's obligation to keep records for five years, the substantiation rules, and the pay-as-you-go (PAYG) withholding and instalment systems.
291 words, about 1 min03Assessable Income: Ordinary and Statutory Income
Assessable income comprises ordinary income under s 6-5 and statutory income under s 6-10. Ordinary income is identified using the characteristics of income: it is periodic, recurrent, and has the character of a gain from business, employment or property.
330 words, about 2 min04Deductions and Trading Stock
Deductions arise under s 8-1 (general deductions) and specific provisions (e.g. depreciation, repairs, bad debts).
288 words, about 1 min05Capital Gains Tax: Events, Exemptions and Calculation
CGT applies to the disposal of CGT assets by CGT events. A capital gain arises when the capital proceeds exceed the cost base; a capital loss arises when proceeds are less than the reduced cost base.
292 words, about 1 min06Entities and Tax Consolidation
Different entities are taxed differently. Companies pay tax on taxable income and frank distributions; partnerships are flow-through (partners are taxed on their share); trusts are generally flow-through, with beneficiaries taxed on present entitlement or the trustee taxed at the top rate.
262 words, about 1 min07Goods and Services Tax
GST is a 10% broad-based consumption tax on supplies of goods and services, collected by registered entities. Key concepts: taxable supplies, GST-free supplies, input taxed supplies, and the GST turnover threshold for registration.
258 words, about 1 min08Fringe Benefits Tax
FBT is a tax on employers for benefits provided to employees in respect of employment. It is separate from income tax and is imposed on the employer.
265 words, about 1 min09Superannuation and Retirement
Superannuation is a tax-advantaged savings vehicle. Key concepts: the three tax phases (contributions, earnings, benefits), the concessional and non-concessional contribution caps, and the preservation age.
234 words, about 1 min10International Taxation: Residence, Source and Double Tax
Australia taxes residents on worldwide income and non-residents on Australian-source income. Key concepts: the residency tests (domicile, 183-day, Commonwealth superannuation, and the resides test), the source rules, and the foreign income exemption for temporary residents.
487 words, about 2 min