Prepare income tax returns - Australia Assignments

FNS50215 Diploma of Accounting/ Supplementary FNSACC502/ 2018 / Supplementary Assessment
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Supplementary Assessment  This form is to be completed by the assessor and used a final record of student competency.  All student submissions including any associated checklists (outlined below) are to be attached to this cover sheet before placing on the students file.
Assessment Task Details
Term and Year
Due Date	/ /	Class Room
Student Name:
Student ID No:
Date:
Qualification :	FNS50215 Diploma of Accounting
Unit Code:	FNSACC502
Unit Title:	Prepare income tax returns for individuals
Assessor’s Name	Ada DU
Supplementary Assessment task	Case study	S / NYS / DNS
Final Assessment Result for this unit	C / NYC
Feedback is given to the student on each Assessment task	Yes / No
Feedback is given to the student on final outcome of the unit	Yes / No
Student Declaration: I declare that this work has been completed by me honestly and with integrity. I understand that the Elite Education Vocation Institute’s Student Assessment, Reassessment and Repeating Units of Competency Guidelines apply to these assessment tasks.	Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback.
Name:	Name:
Signature:	Signature:
Date:	Date:
Student was absent from the feedback session.
Please save this file as PDF format (include your name to the filename) before uploading onto Moodle.

FNS50215 Diploma of Accounting/ Supplementary FNSACC502/ 2018 / Supplementary Assessment
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Assessment deadlines penalty

It is expected that unless a simple extension, special consideration or disability services adjustment has been granted,
candidates will submit all assessments for a unit of study on the specified due date. If the assessment is completed or
submitted within the period of extension, no academic penalty will be applied to that piece of assessment.
If an extension is either not sought, not granted or is granted but work is submitted after the extended due date, the late
submission of assessment will result in a late penalty fee. For further information, please refer to the Assessment Policy.

Assessment/evidence gathering conditions

Each assessment component is recorded as either Satisfactory (S) or Not Yet Satisfactory (NYS). A student can only be
deemed competent when all assessment components listed under procedures and specifications of the assessment section
are Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as
NYS is eligible for re-assessment. Should the student fail to submit the assessment, a result outcome of Did Not Submit
(DNS) will be recorded.

Principles of Assessment

Based on Clauses 1.8 – 1.12 from the Australian Standards Quality Assurance’s (ASQA) Standards for Registered Training
Organizations (RTO) 2015, the learner would be assessed based on the following principles:
Fairness – (1) the individual learner’s needs are considered in the assessment process, (2) where appropriate, reasonable
adjustments are applied by the RTO to take into account the individual leaner’s needs and, (3) the RTO informs
the leaner about the assessment process, and provides the learner with the opportunity to challenge the result
of the assessment and be reassessed if necessary.
Flexibility – assessment is flexible to the individual learner by; (1) reflecting the learner’s needs, (2) assessing competencies
held by the learner no matter how or where they have been acquired and, (3) the unit of competency and
associated assessment requirements, and the individual.
Validity – (1) requires that assessment against the unit/s of competency and the associated assessment requirements
covers the broad range of skills and knowledge, (2) assessment of knowledge and skills is integrated with their
practical application, (3) assessment to be based on evidence that demonstrates tat a leaner could
demonstrate these skills and knowledge in other similar situations and, (4) judgement of competence is based
on evidence of learner performance that is aligned to the unit/s of competency and associated assessment
requirements.
Reliability – evidence presented for assessment is consistently interpreted and assessment results are comparable
irrespective of the assessor conducting the assessment

Rules of Evidence

Validity – the assessor is assured that the learner has the skills, knowledge and attributes, as described in the module of
unit of competency and associated assessment requirements.
Sufficiency – the assessor is assured that the quality, quantity and relevance of the assessment evidence enables a
judgement to be made of a learner’s competency.
Authenticity – the assessor is assured that the evidence presented for assessment is the learner’s own work. This would
mean that any form of plagiarism or copying of other’s work may not be permitted and would be deemed
strictly as a ‘Not Yet Competent’ grading.
Currency – the assessor is assured that the assessment evidence demonstrates current competency. This requires the
assessment evidence to be from the present or the very recent past.

FNS50215 Diploma of Accounting/ Supplementary FNSACC502/ 2018 / Supplementary Assessment
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Resources required for this Assessment

 All documents must be created using Microsoft Office suites i.e., MS Word, Excel, PowerPoint
 Upon completion, submit the assessment via the student learning management system to your trainer along with the
completed assessment coversheet.
 Refer the notes on eLearning to answer the tasks
 Any additional material will be provided by Trainer

Instructions for Students

Please read the following instructions carefully
 This assessment is to be completed according to the instructions given by your assessor.
 Students are allowed to take this assessment home.
 Feedback on each task will be provided to enable you to determine how your work could be improved. You will be
provided with feedback on your work within 2 weeks of the assessment due date.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge.
You will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit
of competency.
 If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
 Please refer to the College re-assessment and re-enrolment policy for more information.

FNS50215 Diploma of Accounting/ Supplementary FNSACC502/ 2018 / Supplementary Assessment
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Supplementary Task

Question 1: Prepare an income tax return form for the following taxpayer

Your client David Lucas (Role played by your assessor), is a single taxpayer. David is a bank manager
and has approached to you to prepare his 2017-2018 income tax return. Before the scheduled
appointment with you, some relevant income and expense information has been provided as
follows,
1. Salary: $55 630; Allowances $230; Reportable fringe benefits$4000. Employer’s ABN: 12 345
678 910 PAYG tax paid $10 560
2. Unit trust distribution was $2264, which had franking credit of $ 113. There was also a gross
capital gain of $260 that was fully discountable.
3. David earned a $47 interest from an overseas bank account but he only received $40 after
they subtracted a foreign tax credit of $7.
4. Other income: bank interest $84; fully franked dividends $240; unfranked dividends $50.
5. He received refunds of $450 from Medicare and his health insurer over the year.
6. David owns an investment property that earned $13 240 rent. The expenses were: interest
$10700, agent commission $910, repairs $128, rates $930 and advertising $45. When he
bought it three years ago, the building itself cost $ 212 000 and at the end of last year the
appliances had a WDV of $ 1285 in the low value pool.
7. During the year David drove his 2.5 –litre car 85 km on work- related travel. He also spent
$320 on union fees, $42 on laundering his grey trousers, $400 on Internet access (half of
which related to his work), $45 on a text book, $80 on donations to the Red Cross and $2380
on hospital/doctors’ bills. Private health insurance cost $1230 and he did not receive any
upfront Government contribution for his health insurance premium
Instructions:
Not all the required documents are provided by your client, therefore, you are required to make an
appointment with your client (your assessor) to gather all the required information and then prepare
for the income tax return for him.
From the ATO website (www.ato.gov.au) you can download the Tax return for individuals 2018 form
in Portable Document Format (PDF) NAT 2541. Based on the information above, you need to submit
a soft copy of the tax return completing all relevant details for the 2017-18 year, specifically pages 2-
7 inclusive.
In place of the front page, attach the cover sheet and show all workings, calculate the taxpayer’s
taxable income and tax payable/refundable for the financial year ended 30 June 2018。
Australian tax is levied annually on the taxable income of a taxpayer. Taxable income is calculated
on the basis of assessable income less allowable deductions. Once taxable income is worked out, tax
on taxable income, tax offsets, Medicare levy and tax credits need to be included to calculate the tax
payable. The actual tax liability is worked out when the annual income tax return is assessed. The
PAYG instalments for the year are credited against your assessed tax to determine whether there is

FNS50215 Diploma of Accounting/ Supplementary FNSACC502/ 2018 / Supplementary Assessment
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a tax payment or a refund.
In order to calculate the tax payments for individuals, you may find the following information to be
useful,
1. Individual tax rates for residents for the period for 2017-18 can be found from
https://www.ato.gov.au/Rates/Individual-income-tax-rates/
2. Medicare Levy Surcharge
https://www.ato.gov.au/individuals/medicare-levy/
3. Capital gains tax
https://www.ato.gov.au/general/capital-gains-tax/
4. Fringe Benefits tax (FBT)
https://www.ato.gov.au/general/fringe-benefits-tax-(fbt)/
5. Offsets and Rebates
https://www.ato.gov.au/Individuals/Income-and-deductions/Offsets-and-rebates/
To complete the task, you are to take the role of a tax agent and need to schedule two sessions with
your client (assessor) either by phone or in person to complete the enquiry session and the result
explanation session. Each session should be approximately 10mins in duration.
For the enquiry session, you need to:
1.1 describe the key sources of information and data required to calculate taxable
income. Ask for any further information you need, for example, insurance company
details, employer’s ABN;
1.2 Explain your key responsibilities under the Tax Agent Services Act (TASA) and Tax
Agent Services Regulations (TASR) as a tax agent to your customers;
1.3 describe the procedures relating to the preparation of tax documentation for
individual taxpayers.
For the result explanation session, it should be done after you complete all the calculations
and filing. During this session, you need to:
1.1 explain the rules and principles of Australian tax law and main concepts included in
this case, e.g. Low income benefits, franking credit, car expense.
1.2 administrative aspects of the taxes identified above including documentation, tax
collection and withholding mechanisms, assessments, obligations, rulings, penalties
and audits
1.3 outline the key accounting principles and practices relevant to the preparation of tax
documentation for individual taxpayers.

FNS50215 Diploma of Accounting/ Supplementary FNSACC502/ 2018 / Supplementary Assessment
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After preparing your tax return and before lodgement, you will need to seek the tax agent specialist
(i.e., Role played by your assessor) advice and confirmation.

Question 2

ATO reviewing your client Daniel’s 201X income tax return and the refund will not issue until the
finalisation of this audit.
Your client has claimed The National Affordability Scheme refundable tax offset in the correct label
T11. For an individual taxpayer, it should be claimed 13B. ATO may process his return, but
documents and information for national affordability scheme refundable tax offsets must be
provided by Daniel.
Now Daniel approached to you for advice and suggestions on the audit.
What need to do
 Make an inquiry to ATO officer to obtain the information about the tax audit and be able to
advise the client for documentation (Role Play with the Assessor)
 Respond by drafting a response letter before the due date. Please insert the following text
in the subject field: Attention XXX for XXX Audit. This will ensure quick allocation and fast
processing of the information.

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What happens next
If the information you provide supports the claims, tax refund will be released without adjustments.
If the information does not support the claims or the client does not respond, ATO will adjust the
claims and issue a notice of assessment. In those circumstances, an administrative penalty may be
applicable.
For more information
If you have any concerns, you can telephone ATO on 0292114958 between 10am and 5pm, Monday
to Friday, and ask for ATO officer Amelia (Role played by your assessor).
While preparing the response, it is not necessary to create and provide the documents in detail, but
you must create a document lists to support the claim. In order to complete the task, you may find
the following link to be useful:
<https://www.ato.gov.au/general/property/in-detail/rental-affordability-scheme/national-rental
affordability-scheme—refundable-tax-offset-and-other-taxation-issues/>

Supplementary task Feedback
Student’s name:
Trainer/ Assessor’s name:	Date:
Unit name:	FNSACC502 Prepare income tax returns for individuals

Assessment Submission Checklist to be completed by the Trainer/Assessor
Did the student complete and provide evidence for the following:	Yes	No
1. Clearly addresses each of the tax requirements?		
2. Provides an analysis on taxable deductions?		
3. Correctly calculates the taxable income?		
4. Completes the tax return form?		
5. Submit within agreed timeframe?		
6. Make inquiry and provide response for an ATO audit.		
7. Requests specialist tax agent advise at least one item included / excluded from the tax return		

FNS50215 Diploma of Accounting/ Supplementary FNSACC502/ 2018 / Supplementary Assessment
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FEEDBACK TO STUDENT:
Assessment outcome	 Satisfactory	 Not Yet Satisfactory	 Re-assessment required
Student Signature	The result of my performance in this assessment has been discussed and explained to me. ____________________________ Date: ______________ Student signature
Trainer/ Assessor’s Signature	Trainer/ Assessor’s declaration: I hereby certify that the above student has been assessed by myself and all assessments are carried out as required by the Principles of Assessments (Clause 1.8 of the Standards for RTO 2015). ____________________________ Date: ______________ Assessor signature

OBSERVATION CHECKLIST
Student’s name:
Trainer/ Assessor’s name:	Date:
Unit name:	FNSACC502 Prepare income tax returns for individuals

Observation checklist to be completed by the Trainer/Assessor It is hard to put the trainer into a real workplace environment, and therefore, we simulate a workplace scenario for a tax agent for this task combined with a series calculation. During the process, trainers are expected to act as a real tax agent and follow the required procedure to complete the tasks. In order to assess the students’ performance in completing the process, the following checklist must be used. To ensure calculations and information provided to the client (assessor) is accurate and complete, the assessor must refer to the marking guide
Did the student complete and provide evidence for the following:	Yes	No
Consultation session
1) Did the session happen via phone call or face to face meeting?
2) Effective communication with the client? E.g. proper verbal expression, body language, active listening to the client and using clear written information/communication		
3) properly asked question to determine whether the client is employed as an employee or as an independent contractor? Question may relate to control over work, payment, independence.		

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4) Able to identify and collect the required documents? E.g. Spotted any materials missing from the materials provided? Ask permission for using first hand resource?		
5) Clearly explained the obligations for a tax agent and also for a client		
6) Clearly explain the whole procedure and fee charges and ask for an agreement signed by the client accepting the terms and conditions of service.		
7) Clearly explains issues related to Privacy.		
8) the client was able to repeat back the required documentation to be provided, when prompted		
Preparations and procedures for the tax return (It is hard to observe the whole procedure, but judgements can be made based on the calculations and final result)
1) Correctly identify and record the amounts as result of the consultation with the client		
2) Correctly calculate the assessable income and allowable deductions		
3) Identify any discrepancies or unusual features?		
4) Identify and adjust the accrued or prepaid income or expenditure		
5) Refer to the appropriate authority where unsure about how to resolve discrepancies or unusual feature		
6) Approach a specialist to ask for advice and guidance when making decisions		
7) Calculate client’s tax obligations according to legislative requirements		
8) Download and fill in the tax return form?		
Result presentation session
1) Did the session happen via phone call or face to face meeting?
2) Clearly summarized all the work done		
3) Explain in details on the tax payment calculations and inform them their current tax obligations.		
4) Outlines next steps and timelines		
5) Present a client with their completed tax documentation, and ask them to sign, authorize and endorse it to indicate their agreement that is and the information in it is true and correct		
Tax lodgment
1) Students open the current website and follow the instructions		
2) Students know the deadline for tax return lodgment		
Tax audit
1) Student understand the supporting documentations requested by an ATO audit		
2) Student is able to inquire the details of the audit and confirm the scope of the audit and be able to advise the client		
3) Completed agreement for services is supplied on request.		

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FEEDBACK TO STUDENT:
Assessment outcome	 Satisfactory	 Not Yet Satisfactory	 Re-assessment required
Student Signature	The result of my performance in this unit has been discussed and explained to me. ____________________________ Date: ______________ Student signature
Trainer/ Assessor’s Signature	Trainer/ Assessor’s declaration: I hereby certify that the above student has been assessed by myself and all assessments are carried out as required by the Principles of Assessments (Clause 1.8 of the Standards for RTO 2015). ____________________________ Date: ______________ Assessor signature

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