Level: Professional
Cost:
$199 members
$320 non-members
Estimated learning duration: 10 hours
Assessment duration: 2.5 hours
Assessment: Part 1: 20 multiple choice questions 75% pass mark
Part 2: 3 scenarios with 3-4 multiple choice questions per scenario 75% pass mark
Assumed knowledge: This unit assumes that the learner has a good understanding of how income is taxed in Australia and the rules regarding whether or not expenditures can be deducted for tax purposes. A foundational understanding the regimes for depreciating assets and capital works deductions is also assumed.
These topics are covered in the Taxation of income, Income tax deductions, and Trading stock and capital expenditures units, respectively.
This section provides you with a general overview of the capital gains tax (CGT) regime. Key concepts and methodologies around what constitutes a CGT asset, the calculation of a capital gain or capital loss, and how the CGT regime fits within the broader income tax system are discussed in this section.
The core methodology that is applied in the calculation of individual capital gains and losses, and the determination of the overall net capital gains position for an income year is covered in this section. You will learn about how capital losses can be used against capital gains, the discount and indexation methods of reducing capital gains, and the relevant conditions for each concept.
There are no capital gains or capital losses without the happening of a CGT event. There a many CGT events in the income tax law. You will learn about some key CGT events in this section. These are: A1; B1; C1, C2, C3, D1, D2 and the CGT ‘F’ events in connection with leases.
In this section you will learn about the general rule for determining what constitutes the capital proceeds attributed to a CGT event. There are six modifications to the general rule that apply in particular circumstances, being the market value substitution, apportionment, non-receipt, repaid, assumption of liability and misappropriation rules. This section discusses each of these modifications in turn.
The five elements of cost base and reduced cost base are discussed in this section. You will also learn about the things that are exclusions from cost base in various situations and how to deal with split, changed or merged CGT assets in this section. The important interaction with Division 43 ITAA97 is also explored in this section. You will learn about some particular situations where the cost base and reduced cost base are modified according to some special rules, including a market value substitution rule and an assumption of liability rule.
