Key Learning Outcomes:

Areas you will be focusing on in this Taxation module

• Based on Legislation ( Statutory Rules)
• Laws and Principles derived from the court system (Case Law)

1. Calculate the tax payable of a tax entity
   – Assessable Income (Ordinary Income ; Statutory Income)
   – Deductions (General deductions ; Specific deductions; deduction to an income)
   – Taxable Income (@different tax rate; e.g. Individuals, Companies, Partnership; Super; Trusts)
   – Tax offsets (Special items that will reduce the tax payable; Don’t confuse it with deductions; deduction to the tax to be paid)
   – Income tax payable
   Assessable Income – Deductions = Taxable Income
   Taxable Income × Tax Rate – Tax offsets = Income tax payable
2. Tax Loss
   Deductions – Assessable Income – Net exempt income = Tax loss- Carried forward
3. Assessable Income
   Residency (3 major tests)
   – resides test
   – domicile test
   – more than 183 days test
   What if it’s a company
   – a company incorporated in Australia
   – carry on business in Australia
4.  Sources of income
    – income (a reward for service)
   – ordinary income ( income from your primary activity; not a capital nature; recurring)  
   
5. Income derivation
   Cash receipts
   Accruals basis (income received in advance; Arthur Murry v.s. FCT)
   Capital receipts (Tree and Fruit) 
   Statutory Income
   Exempt Income
   NANE Income (none assessable none-exempt)