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FPC006 Tax and Commercial Law for Financial Planning

Please note, this subject is part of our postgraduate program. For our Commercial Law subject, please click here.

The subject builds upon the basic tax knowledge introduced in FPC002. It provides students with a comprehensive overview of the Australian Tax system.

This subject explores key principles from commercial and taxation law in the context of enabling tax for (financial) advisers to provide comprehensive financial advice to their clients about their personal and business tax affairs.  In particular this course considers the application of the relevant law to commonly encountered taxation scenarios and financial planning techniques.

*This subject is offered from SP5 2016 onwards. If you are enrolled in a previous study period, please refer to your subject room. This subject has been approved as a Board approved course in Australian taxation law for tax (financial) advisers. This will automatically apply to your enrolment.

For more information, please refer to the subject outline.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      1. Classify concepts of income and expenses as to their assessability and deductibility respectively (as required under taxation law). This includes tax treatment of income protection/replacement strategies. Determine whether an amount incurred is deductible under the general or specific provisions. Apply the taxation law as it relates to the treatment of credits, rebates and offsets in the calculation of tax payable.
      2. Compare and contrast the tax treatment of individuals, partnerships, companies and trusts including treatment of capital distributions, imputation credits, deferred and tax free trust distributions.
      1. Calculate and evaluate employee remuneration options including fringe benefits tax, salary packaging, termination payments and redundancy payments.
      1. Calculate and explain the application of the capital gains tax (CGT) provisions. Define a CGT event and how the law applies to disposal of assets.
      1. Differentiate between taxing superannuation fund contributions, fund earnings and benefits.
      1. Recognise the situations which may lead to the application of various integrity measures, particularly the promoter penalty provisions and identify the circumstances triggering the administrative penalty provisions.
      1. Understand the central role ethical and professional responsibilities play for tax (financial) advisers including obligations under the TASA and TASR.
      1. Explain the goods and services tax (GST) mechanism for Input taxed, GST free and taxable supplies and their interaction with provision of financial advice.
      1. Identify the stakeholders in the taxation system and explain the role of the Australian Tax Office (ATO), the Inspector General of Taxation (IGOT) and the Tax Practitioners Board (TPB) and demonstrate an understanding of tax administration including assessments, amendments and objections, but not preparation of returns or communications on behalf of clients with the Australian Taxation Office.
      2. Recognise and evaluate the role contract law plays in the application of tax law provisions, particularly in the disposal of CGT assets.
      1. Demonstrate an understanding of the fundamental legal concepts defining and differentiating sole traders, partnerships, corporations and trusts and the underlying regulation.
      1. Recognise and evaluate the risk of exposure to the misleading and deceptive conduct provisions of the Competition and Consumer Act 2010, and/or the negligence and negligent misstatement elements of the law of torts.
  • Subject content
    • Topic Title
      Topic 1 Business structures, contract law and agency
      Topic 2 Consumer legislation and torts
      Topic 3 Taxation basics
      Topic 4 Ordinary and statutory income
      Topic 5 Capital gains tax
      Topic 6 General and specific deductions
      Topic 7 Tax offsets and personal income tax
      Topic 8 Taxation of business entities
      Topic 9 Remuneration packaging and superannuation essentials
      Topic 10 Integrity measures and administrative penalties
      Topic 11 Introduction to GST and its implications in giving financial advice
      Topic 12 Tax administration overview

  • Assessment
  • Prerequisites
  • Reading list
    • There are no prescribed texts for this subject.

      Details of any required and further readings for this subject are provided in the subject room.  Purchase of any text other than a prescribed text is not required.