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Foundations of Tax 2018: Full Series

In this series, one of our Senior Tax Trainers will provide you with a fundamental understanding of the essential topics, and a firm base for more complex tax topics.

Content Description

Join us as we cover everything from GST, PAYG and FBT, to CGT and other Australian tax system essentials. A firm understanding of these essentials will give you a great head-start as a tax professional.

In this series, one of our Senior Tax Trainers will provide you with a fundamental understanding of the essential topics, and a firm base for more complex tax topics.


Understanding areas such as assessable income, allowable deductions, capital allowances, GST, FBT, and CGT will start you off in the right direction for a successful career in tax. This series is also perfect as a refresher, to make sure you’re on top of the latest changes.

Session One: Assessable Income

The concept of assessable income forms a critical part in determining a taxpayer’s liability to income tax. In this practical session, gain an understanding of what constitutes assessable income for Australian tax purposes and how it applies to your clients and business. Topics include:

  • Distinction between ordinary income, statutory income, exempt income and Non-Assessable Non-Exempt Income (NANE)
  • Source rules applying to various types of income
  • Calculation of assessable income for both residents and non-residents.

Session Two: Allowable Deductions

The concept of allowable deductions forms a critical part in determining a taxpayer’s liability to income tax. In this practical session, gain an understanding of what constitutes an allowable deduction for Australian tax purposes and how it applies to your clients and business. This session will cover:

  • Positive and negative limbs of the general deduction provision under section 8-1
  • General and specific deductions
  • When an expense/outgoing has been ‘incurred’ for income tax purposes
  • Timing rules that apply to the tax deductibility of certain prepaid expenditure.

Session Three: Capital Allowances

This session explores the tax principles underlying the various forms of capital allowances. Ensure you are aware of the issues when dealing not only with depreciating assets but special types of ‘pooled expenditure’, certain capital expenditure and capital works. This session will cover:

  • General operation of the capital allowance provisions
  • Requirements for a depreciation deduction or immediate write-off
  • Calculating the cost of depreciating assets
  • Assessing the effective life of depreciating assets
  • Prime cost and diminishing value methods
  • Balancing adjustment events
  • Pooling of depreciating assets
  • Capital works.

Session Four: Capital Gains Tax (CGT)

Capital gains tax (CGT) doesn't just apply to the sale of an asset – there are currently more than 50 CGT events which can trigger a CGT consequence. This session will explore the key aspects of the CGT rules that practitioners and clients are likely to encounter and provide extensive practical examples, including:

  • Is there a CGT asset?
  • When was the asset acquired?
  • Did a CGT event happen in income year?
  • Does an exemption apply?
  • What are the capital proceeds?
  • Do capital proceeds exceed cost base?
  • Calculation issues.

Session Five: Trading Stock

For a business involved in the sale of goods, trading stock comprises a significant portion of the business’ assets. Get familiar with the complex trading stock rules and ensure their correct treatment for tax purposes for your business and/or clients. This session will cover:

  • Basic operation of Division 70
  • Tax accounting , including valuation of trading stock
  • Tax consequences of buying and selling trading stock
  • Disposal of trading stock outside of the ordinary course of business
  • Common issues surrounding the trading stock provisions.

Session Six: Taxation of Companies

Companies are a common form of entity in the Australian commercial and tax system, and can provide certain strategic advantages not readily available to partnerships and trusts. This session explores the fundamental principles in relation to the taxation of companies. This session will cover:

  • Different types of corporate structures for income tax purposes
  • Income taxation of companies
  • Company tax losses
  • Dividend imputation
  • Division 7A.

Session Seven: Taxation of Partnerships
For professional practices and small businesses, partnerships are becoming increasingly common and popular form of structure. This session explores the fundamental principles relating to the taxation of partnerships, including:

  • Tax law partnerships and general law partnerships
  • Formation of a partnership
  • Dealings in partnership interests
  • Contributions to a partnership
  • GST considerations
  • CGT considerations.

 Session Eight: Goods and Services Tax (GST)
Although most businesses generally do not bear the ultimate GST burden, meeting these administrative obligations involves ongoing compliance. The ATO in its 2013-2014 Compliance Program has stated it will focus this year on GST refund integrity, real property and serious evasion.

This session aims to explain the general concepts of GST and the general operation of the GST system, including:

  • When does GST apply?
  • When is GST payable by an entity?
  • When can an Input Tax Credit (ITC) be claimed?
  • The concepts of supply, taxable supply, input taxed supply, GST-free supply, creditable acquisition, ITC and reduced ITC
  • Accounting for GST
  • Requirements for tax invoices
  • GST groups
  • Interaction with other taxes, such as FBT

Session Nine: Australian International Tax

The treatment of foreign-source income derived by Australian residents and Australian source income derived by foreign residents remains a complex area of tax law. Do you understand the Foreign Income Tax Offset rules? Or the operation of Double Tax Agreements? This session explores the Australia's international taxation regime as it applies to individuals and businesses, including inbound and outbound investments. This session will cover:

  • Residency of individuals, trusts and companies
  • Source of income
  • The basic operation of Double Tax Agreements (DTA)
  • Australia’s foreign accruals tax rules and other developments
  • Exemption for non-portfolio dividends and branch income
  • Other exemptions and concessions
  • Foreign Income Tax Offset (FITO) rules
  • Dividend, interest and royalty withholding taxes.

Session Ten: Employment Taxes Essentials – PAYG, FBT and Superannuation

This session focuses on the current status and practical application of the various employment taxes, including PAYG withholding, FBT and superannuation obligations. Through the use of practical examples, this session will explore the main taxation systems affecting employment, from the perspective of both the employee and the employer. This session will cover:

  • General operation of the key taxes on employment
  • Australian compulsory superannuation system, including the superannuation guarantee charge
  • Overview of the PAYG withholding system
  • The FBT provisions, including the main requirements for FBT to apply, calculation of the FBT provisions and the key exemptions and concessions
  • Employer obligations with respect to reportable FBT.

Session Eleven: Tax Administration and Compliance

Ensure you can best manage your business or clients’ tax obligations and interaction with the ATO with this essential session on the fundamental principles relating to tax administration and compliance. This session will cover:

  • Self-assessment process
  • Amendment process
  • Objection and appeal process
  • Examination/audit process
  • Penalties and interest charges
  • Prosecutions
  • Tax audit risk management

Ken Mansellhas worked on tax policy development on the Henry Review, in the office of the Assistant Treasurer and in the Revenue Group of the Treasury, worked in the Tax Division for both KPMG and Deloitte and has been the Taxation Manager for the Seven Network and Raytheon Australia.

James McPhedran'sextensive taxation and superannuation experience branches across a wide range of industries from mining and energy, to entertainment and professional tax bodies. Prior to his training role at Chartered Accountants Australia and New Zealand, James was a Tax and Superannuation Advisor at the Knowledge Shop (a wholly-owned subsidiary of Hayes Knight).

Bruce Thomas has written and presented training on a wide variety of tax topics for tax training clients and for public sessions held by the Organisation. Bruce spent 17 years working for the ATO, including working as a senior officer dealing with GST technical issues in the implementation of GST.

Peter McGinty FCA is a Chartered Accountant with degrees in Commerce and Law from the University of Melbourne. Peter has over 25 years’ experience in tax and has focused on domestic tax and GST issues, particularly tax issues affecting family businesses, SME’s and high wealth individuals.

Tristan WebbPrior to joining CAANZ Tristan Webb was National Tax Director at Crowe Horwath for 6 years. Crowe Horwath is one of the largest of Australia’s mid-tier Accounting firms. In this capacity, he was responsible for:

Group Learning and Development Tax risk management policy;

Development of group intellectual property on emerging tax issues;

Developing consistency between member firms through tools, products and processes;

Business development;

Brand building, marketing and media liaison;

Knowledge building at tax specialist level (amongst other responsibilities) ;

Tristan was also required to report to the Crowe Horwath Board of the Tax Advisory Group on a monthly basis.

Before joining Crowe Horwath, Tristan was a Training Specialist at the Institute of Chartered Accountants. He has other Big Four and mid-tier Chartered Accounting experience and has worked for Australia’s top legal publisher in Tax and for the Australian Taxation Office for several in various positions.


Topic: Tax

Sub-Topic: Business Tax, Employment Taxes - PAYE, PAYG & FBT, GST, Income Tax, State/Territory Taxes, Tax Administration

Format: Recorded Webinar

Proficiency Level: Foundation

CPD: 16.5 hours