data/exam.csv

id,topic,subtopic,tax_type,year_of_income,difficulty,legal_references,source_url,question,choice_A,choice_B,choice_C,choice_D,answer_label,correct_answer,numeric_answer,unit,explanation,answer_rationale,python_verifier
Q001,CGT,Capital loss via reduced cost base – shares,Income tax (CGT),2023-24,easy,"[""ITAA 1997 s 104-10"", ""ITAA 1997 s 110-55"", ""ITAA 1997 s 102-10""]",https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-guide-2024/about-capital-gains-tax/how-to-work-out-your-capital-gain-or-capital-loss,"In July 1997 Tobias bought 1,000 shares at $4 per share and incurred brokerage and stamp duty of $120. In December 2023 he sold all 1,000 shares for $3 per share, incurring brokerage of $60. His reduced cost base is the purchase price $4,000 plus $120 (1997 brokerage and stamp duty) plus $60 (2023 brokerage) = $4,180, and his capital proceeds are 1,000 x $3 = $3,000.

What is Tobias's capital loss on the shares?

A. $590
B. -$1,180
C. $1,180
D. $7,180",$590,"-$1,180","$1,180","$7,180",C,"$1,180",1180.0,AUD,"Reduced cost base = 4,000 (1,000 x $4) + 120 (1997 brokerage/stamp duty) + 60 (2023 brokerage) = 4,180 → Capital proceeds = 1,000 x $3 = 3,000 → Capital loss = reduced cost base - capital proceeds = 4,180 - 3,000 = 1,180","{""$590"": ""Wrongly halved the loss as if a 50% discount applied (discounts never apply to losses)"", ""-$1,180"": ""Subtracted in the wrong order, giving a negative (a gain instead of a loss)"", ""$1,180"": ""Correct answer"", ""$7,180"": ""Added proceeds to the reduced cost base instead of subtracting""}","{""formula"": ""reduced_cost_base - capital_proceeds"", ""params"": {""reduced_cost_base"": 4180, ""capital_proceeds"": 3000}, ""expected"": 1180.0}"
Q002,Individual income tax,Net tax: 2024-25 Stage 3 brackets + 2% Medicare levy - LITO,Income tax (individual),2024-25,hard,"[""ITAA 1997 s 4-10"", ""Income Tax Rates Act 1986 Sch 7"", ""ITAA 1936 s 159N"", ""Medicare Levy Act 1986 s 6""]",https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents,"Leah is an Australian resident for all of 2024-25 with a taxable income of $40,000, single with no dependants. From 1 July 2024 the Stage 3 rates apply: $18,201 - $45,000 is taxed at 16c for each $1 over $18,200 (the old 19c rate no longer applies). Add the 2% Medicare levy on taxable income, then subtract the low income tax offset (LITO): for income between $37,501 and $45,000, LITO = $700 minus 5 cents for every $1 over $37,500.

What is Leah's net tax payable (income tax + Medicare levy - LITO) for 2024-25?

A. $3,713
B. $4,367
C. $2,913
D. $4,288","$3,713","$4,367","$2,913","$4,288",A,"$3,713",3713.0,AUD,"2024-25 Stage 3 bracket: tax = (40,000 - 18,200) x 0.16 = 21,800 x 0.16 = 3,488. → Medicare levy = 40,000 x 0.02 = 800. → LITO (37,501-45,000 band) = 700 - (40,000 - 37,500) x 0.05 = 700 - 125 = 575. → Net tax = 3,488 + 800 - 575 = 3,713.","{""$3,713"": ""Correct answer"", ""$4,367"": ""Used the pre-Stage-3 19c rate (2023-24 and earlier) instead of the 16c rate that applies from 2024-25"", ""$2,913"": ""Forgot to add the 2% Medicare levy"", ""$4,288"": ""Forgot to subtract the low income tax offset (LITO)""}","{""formula"": ""(taxable_income - bracket_floor) * marginal_rate + taxable_income * medicare_rate - (lito_max - (taxable_income - lito_taper_start) * lito_taper_rate)"", ""params"": {""taxable_income"": 40000, ""bracket_floor"": 18200, ""marginal_rate"": 0.16, ""medicare_rate"": 0.02, ""lito_max"": 700, ""lito_taper_start"": 37500, ""lito_taper_rate"": 0.05, ""old_rate"": 0.19}, ""expected"": 3713.0}"
Q003,Employment,Genuine redundancy – tax-free limit exceeds whole payment (17 years),Income tax (employment termination),2023-24,easy,"[""ITAA 1997 s 83-170"", ""ITAA 1997 s 83-175""]",https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/when-a-worker-leaves-your-business/taxation-of-termination-payments/redundancy-and-early-retirement,"Priya is 46 and started working for HJK Pty Ltd on 5 July 2001. She is made redundant effective 20 August 2023 because the company merged and her role was no longer needed. Priya is paid 2 weeks for each of her 22 years of service based on weekly earnings of $2,090 (approximately 2 × $2,090 × 22 = $92,000). She is receiving a genuine redundancy. For 2023-24 the tax-free limit is the base amount $11,985 plus the service amount $5,994 for each completed year of service.

What is Priya's genuine redundancy tax-free limit for her 22 years of service?

A. $17,979
B. $131,868
C. $143,853
D. $92,000","$17,979","$131,868","$143,853","$92,000",C,"$143,853",143853.0,AUD,"Tax-free limit = base + (service × years) = 11,985 + (5,994 × 22) → = 11,985 + 131,868 = 143,853 → As Priya's redundancy payment ($92,000) is less than the tax-free limit ($143,853), the whole payment is tax-free","{""$17,979"": ""Added only one year's service amount instead of multiplying by 22 years"", ""$131,868"": ""Omitted the base amount and counted only the service component"", ""$143,853"": ""Correct answer"", ""$92,000"": ""Assumed the tax-free limit equals the redundancy payment actually received ($92,000)""}","{""formula"": ""base + service*years"", ""params"": {""base"": 11985, ""service"": 5994, ""years"": 22, ""payment"": 92000}, ""expected"": 143853.0}"
Q004,Employment,Genuine redundancy – tax-free limit (base + service × years),Income tax (employment termination),2023-24,easy,"[""ITAA 1997 s 83-170"", ""ITAA 1997 s 83-175""]",https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/when-a-worker-leaves-your-business/taxation-of-termination-payments/redundancy-and-early-retirement,"Darren is a 57-year-old operations director who has worked for Coral Bay Freight for 14 years. In 2023-24 Coral Bay Freight is acquired by a larger group that already has an operations director, so Darren's position is no longer needed and his employment is terminated. He accepts a redundancy and is paid $270,000, of which $205,000 is the genuine redundancy part. For 2023-24 the genuine redundancy tax-free limit is the base amount of $11,985 plus the service amount of $5,994 for each completed year of service.

What is the tax-free part of Darren's genuine redundancy payment based on his 14 years of service?

A. $95,901
B. $17,979
C. $251,706
D. $83,916","$95,901","$17,979","$251,706","$83,916",A,"$95,901",95901.0,AUD,"Genuine redundancy tax-free limit = base amount + (service amount × years of service) → For the 2023-24 income year: base amount = $11,985, service amount = $5,994 → Tax-free part = 11,985 + (5,994 × 14) = 11,985 + 83,916 = 95,901","{""$95,901"": ""Correct answer"", ""$17,979"": ""Added only one year's service amount instead of multiplying by the 14 years of service"", ""$251,706"": ""Multiplied the base amount by years of service as well (the base amount is not multiplied)"", ""$83,916"": ""Omitted the base amount and counted only the service component""}","{""formula"": ""base + service*years"", ""params"": {""base"": 11985, ""service"": 5994, ""years"": 14, ""payment"": 205000}, ""expected"": 95901.0}"
Q005,Division 7A & Company Tax,Company income tax payable after franking tax offset (30% rate),Income tax (company),2014-15,medium,"[""ITAA 1997 s 4-10"", ""ITAA 1997 s 207-20""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/in-detail/utilising-franking-tax-offsets-and-effect-on-losses-corporate-tax-entities,"In the 2014-15 income year Company K has assessable income of $750 ($175 franked dividend, $75 franking credit gross-up and $500 other income) and $250 of allowable deductions, giving taxable income of $500. It applies the 30% company tax rate and is entitled to a $75 franking tax offset for the franking credit. Income tax payable = taxable income x 30% less the franking tax offset.

What is Company K's income tax payable for 2014-15 (before any prior-year losses)?

A. $225
B. $50
C. $75
D. $150",$225,$50,$75,$150,C,$75,75.0,AUD,Taxable income = 750 assessable income - 250 deductions = 500 → Gross income tax = 500 x 30% = 150 → Apply $75 franking tax offset: 150 - 75 = 75 income tax payable,"{""$225"": ""Added the franking credit to the tax instead of offsetting it"", ""$50"": ""Used the 25% base-rate-entity rate instead of the 30% rate that applies here"", ""$75"": ""Correct answer"", ""$150"": ""Forgot to apply the $75 franking tax offset against the gross tax""}","{""formula"": ""taxable_income * tax_rate - franking_offset"", ""params"": {""taxable_income"": 500, ""tax_rate"": 0.3, ""franking_offset"": 75}, ""expected"": 75.0}"
Q006,Individual income tax,Low and middle income tax offset (LMITO) taper-down,Income tax offset,2021-22,medium,"[""ITAA 1936 s 159N"", ""ITAA 1997 s 61-575""]",https://www.ato.gov.au/forms-and-instructions/low-and-middle-income-earner-tax-offsets,"Hugo's taxable income is $99,000 for 2021-22. As his income is more than $90,000 but less than $126,000, his low and middle income tax offset (LMITO) is the full amount of $1,500 minus 3 cents for every dollar his income is above $90,000.

What is Hugo's low and middle income tax offset (LMITO) amount for 2021-22?

A. -$1,470
B. $825
C. $1,500
D. $1,230","-$1,470",$825,"$1,500","$1,230",D,"$1,230",1230.0,AUD,"Kept taxable income within the 2021-22 LMITO taper-down band ($90,001-$126,000) → LMITO above $90,000 = $1,500 minus 3 cents for every $1 above $90,000 → Income above the taper start = 99,000 - 90,000 = 9,000 → Reduction = 9,000 x 0.03 = 270 → LMITO = 1,500 - 270 = 1,230","{""-$1,470"": ""Applied the 3c taper to the whole taxable income instead of only the amount over $90,000"", ""$825"": ""Used the 7.5c phase-in rate (for the $37,000-$48,000 band) instead of the 3c phase-out rate"", ""$1,500"": ""Gave the full $1,500 LMITO without applying the 3c taper above $90,000"", ""$1,230"": ""Correct answer""}","{""formula"": ""max_offset - (taxable_income - taper_start) * taper_rate"", ""params"": {""taxable_income"": 99000, ""max_offset"": 1500, ""taper_start"": 90000, ""taper_rate"": 0.03}, ""expected"": 1230.0}"
Q007,Employment,"Work-related car – cents per kilometre method (rate × business km, 5,000 km cap)",Income tax (work-related deduction),2025-26,easy,"[""ITAA 1997 s 28-25"", ""ITAA 1997 s 8-1""]",https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/cars-transport-and-travel/motor-vehicle-and-car-expenses/expenses-for-a-car-you-own-or-lease/cents-per-kilometre-method,"Once per week Mateo makes a 33-kilometre round trip in his own car from his city head office to meet clients, and once per month he makes a 118-kilometre round trip to clients at another location. For 2025-26 his diary shows he made 46 weekly client trips (46 × 33 km = 1,518 km) and 12 monthly client trips (12 × 118 km = 1,416 km), giving total work-related travel of 2,934 km, plus a further 252 km of occasional client visits, for 3,186 km. The cents per kilometre rate for 2025-26 is 88 cents per kilometre, and a maximum of 5,000 work-related kilometres can be claimed per car.

What car expense deduction can Mateo claim for 2025-26 using the cents per kilometre method?

A. $2,485
B. $4,400
C. $2,708
D. $2,804","$2,485","$4,400","$2,708","$2,804",D,"$2,804",2804.0,AUD,"Work-related kilometres = (46 × 33) + (12 × 118) + 252 = 1,518 + 1,416 + 252 = 3,186 km → 3,186 km is below the 5,000 km cap, so all of it is claimable → Deduction = 3,186 × $0.88 (2025-26 rate) = $2,804","{""$2,485"": ""Used the 2022-23 rate of 78 cents instead of the 2025-26 rate"", ""$4,400"": ""Claimed the full 5,000 km cap regardless of the actual 3,186 km travelled"", ""$2,708"": ""Used the 2023-24 rate of 85 cents instead of the 2025-26 rate of 88 cents"", ""$2,804"": ""Correct answer""}","{""formula"": ""round(min(business_km, 5000) * rate)"", ""params"": {""business_km"": 3186, ""rate"": 0.88, ""prior_rate"": 0.85, ""rate_2223"": 0.78}, ""expected"": 2804.0}"
Q008,FBT,Type 1 gross-up of a single car fringe benefit (2.0802),Fringe benefits tax (car fringe benefits),2023-24,easy,"[""FBTAA 1986 s 5B"", ""FBTAA 1986 s 57A""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2024-instructions/worked-examples-not-for-profit-employers-completing-your-fbt-return,"Goldenfields Mission, a public benevolent institution registered for GST, provides Rosa with a car fringe benefit valued at $3,500 using the statutory formula method. This is a type 1 benefit because the institution is entitled to a GST credit for the provision of the benefit. The type 1 gross-up rate is 2.0802.

What is Rosa's grossed-up type 1 amount for the car fringe benefit?

A. $7,280.70
B. $3,500.00
C. $3,421.93
D. $6,603.80","$7,280.70","$3,500.00","$3,421.93","$6,603.80",A,"$7,280.70",7280.7,AUD,"The car fringe benefit is a type 1 benefit (GST credit available), so use the higher gross-up rate 2.0802 → 3,500 x 2.0802 = 7,280.70","{""$7,280.70"": ""Correct answer"", ""$3,500.00"": ""Reported the taxable value without grossing it up"", ""$3,421.93"": ""Applied the 47% FBT rate at the gross-up step instead of producing the grossed-up amount"", ""$6,603.80"": ""Used the type 2 gross-up rate 1.8868 instead of the type 1 rate 2.0802""}","{""formula"": ""car_value * type1_rate"", ""params"": {""car_value"": 3500, ""type1_rate"": 2.0802, ""type2_rate"": 1.8868}, ""expected"": 7280.7}"
Q009,Employment,Working from home – fixed rate method (cents per hour × hours),Income tax (work-related deduction),2024-25,easy,"[""ITAA 1997 s 8-1"", ""PCG 2023/1""]",https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/working-from-home-expenses/fixed-rate-method,"Naomi is an employee engineer. During 2024-25 she works from home and uses her timesheets to record the hours she spends working from home. At the end of the income year she works out she worked at home for a total of 1,126 hours. She incurs electricity, internet and mobile phone expenses while working from home. For 2024-25 the working-from-home fixed rate is 70 cents per work hour, which covers energy, phone, internet, stationery and computer consumables.

What working-from-home deduction can Naomi claim for 2024-25 using the fixed rate method?

A. $586
B. $1,126
C. $788
D. $754",$586,"$1,126",$788,$754,C,$788,788.0,AUD,"Fixed rate for 2024-25 = 70 cents per work hour → Deduction = hours worked from home × rate per hour → = 1,126 × $0.70 = $788","{""$586"": ""Used the old 52 cents per hour rate (2020-21/2021-22)"", ""$1,126"": ""Reported the number of hours as the deduction without multiplying by the hourly rate"", ""$788"": ""Correct answer"", ""$754"": ""Used the 2022-23/2023-24 rate of 67 cents instead of the 2024-25 rate of 70 cents""}","{""formula"": ""round(hours * rate)"", ""params"": {""hours"": 1126, ""rate"": 0.7, ""prior_rate"": 0.67, ""rate_5253"": 0.52}, ""expected"": 788.0}"
Q010,Depreciation,Immediate deduction – low-cost asset costing $300 or less (apportioned for private use),"Income tax (capital allowances, Div 40)",2019-20,medium,"[""ITAA 1997 s 40-80(2)""]",https://www.ato.gov.au/forms-and-instructions/depreciating-assets-guide-2020/deductions-for-the-cost-of-depreciating-assets/working-out-decline-in-value/immediate-deduction-for-certain-non-business-depreciating-assets-costing-300-or-less,"Hassan buys a noise-cancelling headset for $220. He uses it 75% of the time for managing his (non-business) share portfolio and 25% of the time for private purposes. Because he uses it more than 50% of the time to produce non-business assessable income, and it cost $300 or less, he qualifies for an immediate deduction - but the deduction must be reduced by the 25% private (non-taxable) use.

What immediate deduction can Hassan claim for the headset (ignoring GST)?

A. $55.00
B. $165.00
C. $219.75
D. $220.00",$55.00,$165.00,$219.75,$220.00,B,$165.00,165.0,AUD,"Cost is $300 or less and the asset is used >50% for producing non-business assessable income, so an immediate deduction applies → Deduction is reduced for the 25% non-taxable (private) use: taxable use = 75% → Immediate deduction = 220 x 75% = 165","{""$55.00"": ""Apportioned by the 25% private-use percentage instead of the 75% taxable-use percentage"", ""$165.00"": ""Correct answer"", ""$219.75"": ""Subtracted the 0.25 fraction from the cost instead of multiplying"", ""$220.00"": ""Claimed the full $220 cost, ignoring the 25% private-use reduction""}","{""formula"": ""cost * taxable_pct"", ""params"": {""cost"": 220, ""taxable_pct"": 0.75, ""private_pct"": 0.25}, ""expected"": 165.0}"
Q011,Study and training loans,"Compulsory repayment – 2025-26 top band (10% of total repayment income, $179,286+)",Study and training support loan – compulsory repayment,2025-26,medium,"[""Higher Education Support Act 2003 s 154-1"", ""Higher Education Support Act 2003 s 154-20""]",https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds,"In the 2025-26 financial year Ananya has a taxable income of $224,500 and reportable super contributions of $26,930, giving a repayment income of $251,430. This is above $179,286, so the repayment is 10% of her total repayment income (the ATO rounds the result to the nearest dollar).

What is Ananya's compulsory study and training loan repayment for 2025-26?

A. $37,714.50
B. $7,214.40
C. $30,193.10
D. $25,143.00","$37,714.50","$7,214.40","$30,193.10","$25,143.00",D,"$25,143.00",25143.0,AUD,"Repayment income = 224,500 + 26,930 = 251,430, which is at or above $179,286 (the same top band as the base example) → In the top band the repayment is 10% of the whole repayment income, not a marginal amount → Compulsory repayment = 251,430 x 10% = 25,143.00, rounded to 25,143","{""$37,714.50"": ""Used the 15% first-band rate instead of the 10% top-band rate"", ""$7,214.40"": ""Applied 10% only to income above $179,286 instead of to the whole repayment income"", ""$30,193.10"": ""Used the $8,700 + 17c band instead of the 10% top band"", ""$25,143.00"": ""Correct answer""}","{""formula"": ""round(repayment_income * rate)"", ""params"": {""repayment_income"": 251430, ""rate"": 0.1, ""threshold"": 179286, ""lower_base"": 8700, ""lower_threshold"": 125000, ""lower_rate"": 0.17}, ""expected"": 25143.0}"
Q012,Individual income tax,Income tax payable in the 19c bracket plus Medicare levy,Income tax (individual),2023-24,easy,"[""ITAA 1997 s 4-10"", ""Income Tax Rates Act 1986 Sch 7"", ""Medicare Levy Act 1986 s 6""]",https://www.ato.gov.au/forms-and-instructions/foreign-income-tax-offset-rules-guide-2024/calculate-your-fito-or-offset-limit,"Priya is an Australian resident for the year ended 30 June 2024 with a taxable income of $36,500. The ATO works out the tax payable on her taxable income, stating the amount includes the Medicare levy. For 2023-24 the second resident bracket is 19c for each $1 over $18,200, and the Medicare levy is 2% of taxable income.

What is the tax payable (including the 2% Medicare levy) on Priya's taxable income of $36,500 for 2023-24?

A. $3,843
B. $7,665
C. $4,207
D. $3,477","$3,843","$7,665","$4,207","$3,477",C,"$4,207",4207.0,AUD,"Kept taxable income within the 2023-24 $18,201-$45,000 bracket (19c for each $1 over $18,200) → Tax on income = (36,500 - 18,200) x 0.19 = 18,300 x 0.19 = 3,477 → Medicare levy = 36,500 x 0.02 = 730 → Tax payable incl Medicare levy = 3,477 + 730 = 4,207","{""$3,843"": ""Charged the Medicare levy only on income above the tax-free threshold instead of on the whole taxable income"", ""$7,665"": ""Applied the 19% rate to the whole income instead of only the amount over the $18,200 tax-free threshold"", ""$4,207"": ""Correct answer"", ""$3,477"": ""Forgot to add the 2% Medicare levy""}","{""formula"": ""(taxable_income - bracket_floor) * marginal_rate + taxable_income * medicare_rate"", ""params"": {""taxable_income"": 36500, ""bracket_floor"": 18200, ""marginal_rate"": 0.19, ""medicare_rate"": 0.02}, ""expected"": 4207.0}"
Q013,Superannuation,Carry-forward concessional cap headroom after employer SG and personal deductible contributions,Superannuation (concessional contributions cap),2024-25,medium,"[""ITAA 1997 s 291-20"", ""ITAA 1997 s 291-25"", ""ITAA 1997 s 290-150""]",https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap,"In 2024-25 Nadia has $18,000 of carried-forward unused concessional cap (her total super balance at 30 June 2024 was below $500,000, so she can use it). Her employer pays $9,500 of super guarantee concessional contributions during the year, and she makes a $6,000 personal contribution for which she will claim a tax deduction (a concessional contribution). The standard concessional contributions cap for 2024-25 is $30,000.

How much more can Nadia contribute as a concessional contribution in 2024-25 before exceeding her available cap?

A. $42,000
B. $30,000
C. $14,500
D. $32,500","$42,000","$30,000","$14,500","$32,500",D,"$32,500",32500.0,AUD,"Available concessional cap = carried-forward unused 18,000 + 2024-25 standard cap 30,000 = 48,000 → Concessional contributions already used = employer SG 9,500 + personal deductible contribution 6,000 = 15,500 → Remaining headroom = 48,000 − 15,500 = 32,500","{""$42,000"": ""Forgot to count the $9,500 employer SG against the cap"", ""$30,000"": ""Used the 2021-22 cap of $27,500 instead of the 2024-25 cap of $30,000"", ""$14,500"": ""Ignored the $18,000 carried-forward unused concessional cap"", ""$32,500"": ""Correct answer""}","{""formula"": ""(carry_forward + cc_cap) - (sg + personal_deductible)"", ""params"": {""carry_forward"": 18000, ""cc_cap"": 30000, ""sg"": 9500, ""personal_deductible"": 6000, ""old_cap"": 27500}, ""expected"": 32500.0}"
Q014,Individual income tax,Part-year resident pro-rated tax-free threshold (newcomer),Income tax (individual),2024-25,medium,"[""Income Tax Rates Act 1986 s 20"", ""Income Tax Rates Act 1986 s 16""]",https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/coming-to-australia/tax-free-threshold-for-newcomers-to-australia,"Sanjay became an Australian resident for tax purposes on 12 October, so his tax-free threshold is apportioned for 9 of the 12 months in the income year (including the month he arrived). A part-year resident's tax-free threshold is a flat $13,464 plus an additional $4,736 apportioned for the number of resident months.

What is Sanjay's pro-rated tax-free threshold for the income year?

A. $13,650
B. $18,200
C. $17,016
D. $13,464","$13,650","$18,200","$17,016","$13,464",C,"$17,016",17016.0,AUD,"Kept resident_months within the valid 1-12 month range (9 of 12 months) → Flat component = $13,464 → Apportioned component = ($4,736 x 9) / 12 = 42,624 / 12 = 3,552 → Tax-free threshold = 13,464 + 3,552 = 17,016","{""$13,650"": ""Apportioned the whole $18,200 threshold instead of only the $4,736 component"", ""$18,200"": ""Gave the full $4,736 additional amount instead of apportioning it for 9 months"", ""$17,016"": ""Correct answer"", ""$13,464"": ""Used only the flat $13,464 and ignored the apportioned component entirely""}","{""formula"": ""flat_amount + apportioned_amount * resident_months / total_months"", ""params"": {""flat_amount"": 13464, ""apportioned_amount"": 4736, ""resident_months"": 9, ""total_months"": 12}, ""expected"": 17016.0}"
Q015,Superannuation,Super co-contribution – maximum entitlement,Superannuation (government co-contribution),2023-24,easy,"[""Superannuation (Government Co-contribution for Low Income Earners) Act 2003 s 9"", ""Superannuation (Government Co-contribution for Low Income Earners) Act 2003 s 10""]",https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/government-super-contributions/super-co-contribution,"In the current financial year Rosa earns $34,000, which is at or below the lower income threshold. She pays $42.30 per fortnight from her take-home (after-tax) pay into her super account, totalling $1,100 of personal non-concessional contributions for the year. She meets all other co-contribution eligibility requirements. The government matches eligible personal contributions at 50 cents per dollar, up to a maximum co-contribution of $500.

What super co-contribution will the government pay into Rosa's super account?

A. $550
B. $275
C. $500
D. $1,100",$550,$275,$500,"$1,100",C,$500,500.0,AUD,"Personal non-concessional contributions for the year = $1,100 → Government matching at 50% = 1,100 x 0.5 = $550 → Capped at the maximum co-contribution of $500 (same cap as the base example), so Rosa receives the maximum $500","{""$550"": ""Applied the 50% matching rate without capping at the $500 maximum"", ""$275"": ""Halved the matched amount as if the matching rate were 25%"", ""$500"": ""Correct answer"", ""$1,100"": ""Treated the whole personal contribution as the co-contribution""}","{""formula"": ""min(personal_contribution * match_rate, max_cc)"", ""params"": {""personal_contribution"": 1100, ""match_rate"": 0.5, ""max_cc"": 500}, ""expected"": 500.0}"
Q016,Division 7A & Company Tax,Division 7A minimum yearly repayment – subsequent year (amortisation formula),Income tax (Division 7A deemed dividend),2015-16,hard,"[""ITAA 1936 s 109E"", ""ITAA 1936 s 109N""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/private-company-benefits-division-7a-dividends/in-detail/division-7a-loans,"Continuing the same amalgamated loan, the amount of the loan remaining at the end of the previous income year (year ended 30 June 2015) is $63,750. The benchmark interest rate for the 2016 income year is 5.45% and the remaining term is 6 years (the 7-year loan term less one elapsed year). The minimum yearly repayment is worked out using MYR = (P x I) / (1 - (1 / (1 + I)) ^ T).

What is the minimum yearly repayment for the 2016 income year?

A. $12,944.01
B. $3,474.38
C. $11,197.61
D. $12,741.19","$12,944.01","$3,474.38","$11,197.61","$12,741.19",D,"$12,741.19",12741.19,AUD,"Amount of loan not repaid by end of previous (2015) income year P = 63,750 → 2016 benchmark interest rate I = 5.45% (0.0545); remaining term T = 6 years → Step 1: 63,750 x 0.0545 = 3,474.375 → Step 2: 1 / (1 + 0.0545) = 0.948316738 → Step 3: 0.948316738 ^ 6 = 0.72731157 → Step 4: 1 - 0.72731157 = 0.27268843 → Step 5: 3,474.375 / 0.27268843 = 12,741 (rounded to nearest dollar)","{""$12,944.01"": ""Used the prior year's 5.95% benchmark rate instead of the current 5.45% rate"", ""$3,474.38"": ""Charged only one year's interest instead of amortising over the remaining term"", ""$11,197.61"": ""Used the original 7-year term instead of the 6-year remaining term"", ""$12,741.19"": ""Correct answer""}","{""formula"": ""(P * I) / (1 - (1 / (1 + I)) ** T)"", ""params"": {""P"": 63750, ""I"": 0.0545, ""T"": 6}, ""expected"": 12741.19}"
Q017,Superannuation,Super guarantee on back pay – OTE component only,Superannuation (super guarantee),2025-26,medium,"[""Superannuation Guarantee (Administration) Act 1992 s 6(1)"", ""Superannuation Guarantee (Administration) Act 1992 s 19""]",https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay,"Priscilla finished employment with Clever Crosswords Pty Ltd on 30 June 2025. In September 2025 the company realises it underpaid her for the period 1 January to 30 June 2025 and works out back pay of $3,150 of ordinary hours and $945 of overtime. Priscilla is paid the back pay on 6 September 2025. Overtime is not OTE, and because payment is made after 1 July 2025 the 12% super guarantee rate applies.

What super guarantee contribution must Clever Crosswords Pty Ltd pay on Priscilla's back pay?

A. $378.00
B. $113.40
C. $491.40
D. $362.25",$378.00,$113.40,$491.40,$362.25,A,$378.00,378.0,AUD,"OTE component of the back pay = $3,150 of ordinary hours (the $945 overtime is not OTE) → Super guarantee rate (payment made 6 September 2025) = 12% (rate kept fixed from the base example) → SG = 3,150 x 12% = $378","{""$378.00"": ""Correct answer"", ""$113.40"": ""Applied SG to the overtime component only"", ""$491.40"": ""Included the $945 overtime back pay in OTE"", ""$362.25"": ""Used the old 11.5% SG rate instead of 12% applicable to the September 2025 payment""}","{""formula"": ""ordinary_backpay * sg_rate"", ""params"": {""ordinary_backpay"": 3150, ""overtime_backpay"": 945, ""sg_rate"": 0.12, ""old_rate"": 0.115}, ""expected"": 378.0}"
Q018,FBT,Meal entertainment fringe benefit – 50:50 split method,Fringe benefits tax,2025-26,easy,"[""FBTAA 1986 s 37AA"", ""FBTAA 1986 s 37BA""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2026-instructions/item-23-fringe-benefit-categories-for-fbt-return-2026,"Kestrel Advisory Partners spends $6,800 on meal entertainment (not provided under a salary packaging arrangement) for the FBT year ending 31 March 2026. On 1 April 2026 the employer elects to value the meal entertainment fringe benefits using the 50:50 split method.

What is the taxable value of the meal entertainment fringe benefits under the 50:50 split method?

A. $3,400.00
B. $6,415.12
C. $1,598.00
D. $6,800.00","$3,400.00","$6,415.12","$1,598.00","$6,800.00",A,"$3,400.00",3400.0,AUD,"Under the 50:50 split method, the taxable value is 50% of total expenditure on meal entertainment for all people (employees, clients or others) during the FBT year → Total meal entertainment expenditure = 6,800 → Taxable value = 6,800 x 50% = 3,400","{""$3,400.00"": ""Correct answer"", ""$6,415.12"": ""Grossed up the 50% taxable value by the Type 2 factor before reporting it"", ""$1,598.00"": ""Reported the FBT payable (47% of the taxable value) instead of the taxable value"", ""$6,800.00"": ""Treated the whole expenditure as the taxable value, ignoring the 50% split""}","{""formula"": ""total_meal_entertainment * split_rate"", ""params"": {""total_meal_entertainment"": 6800, ""split_rate"": 0.5}, ""expected"": 3400.0}"
Q019,FBT,Car fringe benefit – operating cost method with employee contribution,Fringe benefits tax (car fringe benefits),2020-21,medium,"[""FBTAA 1986 s 10"", ""FBTAA 1986 s 10(3)""]",https://www.ato.gov.au/law/view/document?locid=%27SAV/FBTGEMP/7.9%27&PiT=99991231235958,"A car purchased by Summit Architecture Studio in February 2020 is used privately by its employee Priya Venkatesh throughout the FBT year 1 April 2020 to 31 March 2021. The employer and employee kept the right records and determined the business use percentage is 65% (so private use is 35%). The total operating costs for the year are $16,400 (fuel $2,600, repairs and maintenance $1,200, service $900, insurance and registration $1,800, deemed depreciation $8,200 and deemed interest $1,700). Priya spent $1,800 on fuel and provided the required declaration to the employer.

What is the taxable value of the car fringe benefit using the operating cost method for the FBT year ending 31 March 2021?

A. $7,540
B. $5,740
C. $3,940
D. $8,860","$7,540","$5,740","$3,940","$8,860",C,"$3,940",3940.0,AUD,"Total operating costs = 16,400 (includes deemed depreciation at 25% and deemed interest) → Private use percentage = 100% - 65% business use = 35% → Operating costs x private use % = 16,400 x 35% = 5,740 → Reduce by the employee (recipient) contribution: 5,740 - 1,800 = 3,940","{""$7,540"": ""Added the employee contribution instead of subtracting it"", ""$5,740"": ""Forgot to subtract the $1,800 employee fuel contribution"", ""$3,940"": ""Correct answer"", ""$8,860"": ""Applied the 65% business use percentage instead of the 35% private use percentage""}","{""formula"": ""operating_costs * private_use_percent - employee_contribution"", ""params"": {""operating_costs"": 16400, ""business_use_percent"": 0.65, ""private_use_percent"": 0.35, ""employee_contribution"": 1800}, ""expected"": 3940.0}"
Q020,Division 7A & Company Tax,Distributable surplus limit – proportional reduction of a deemed dividend,Income tax (Division 7A deemed dividend),2014-15,medium,"[""ITAA 1936 s 109Y""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/private-company-benefits-division-7a-dividends/in-detail/division-7a-distributable-surplus,"On 3 March 2015 Brightwater Trading Pty Ltd loaned $800 to its shareholder Marcus, which is treated as a provisional dividend of $800 at 30 June 2015. For the year ended 30 June 2015 Brightwater Trading Pty Ltd has a distributable surplus of $1,500, while the total of all provisional dividends (loans and payments to shareholders and associates) is $2,000. Because the distributable surplus is less than the total provisional dividends, each provisional dividend is reduced proportionally: amount treated as a dividend = provisional dividend x (distributable surplus / total provisional dividends).

What amount is treated as a dividend to Marcus for the 2014-15 income year?

A. $1,500.00
B. $600.00
C. $1,066.67
D. $800.00","$1,500.00",$600.00,"$1,066.67",$800.00,B,$600.00,600.0,AUD,"Provisional dividend to Marcus = 800 → Distributable surplus = 1,500; total of all provisional dividends = 2,000 → Distributable surplus (1,500) < total provisional dividends (2,000), so reduce proportionally → Amount treated as a dividend = 800 x (1,500 / 2,000) = 600 (included as an unfranked dividend)","{""$1,500.00"": ""Treated the entire distributable surplus as Marcus's dividend instead of apportioning it across all provisional dividends"", ""$600.00"": ""Correct answer"", ""$1,066.67"": ""Inverted the ratio (multiplied by total/surplus instead of surplus/total)"", ""$800.00"": ""Treated the whole $800 loan as a dividend, ignoring the distributable surplus cap""}","{""formula"": ""provisional_dividend * distributable_surplus / total_provisional"", ""params"": {""provisional_dividend"": 800, ""distributable_surplus"": 1500, ""total_provisional"": 2000}, ""expected"": 600.0}"
Q021,Depreciation,"Immediate deduction threshold – asset costing exactly $300 (rental, qualifies)","Income tax (capital allowances, Div 40)",2024-25,medium,"[""ITAA 1997 s 40-80(2)"", ""ITAA 1997 s 40-25""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/rental-expenses/depreciating-assets-in-rental-properties,"Olivia buys a freestanding electric heater for her residential rental property for exactly $300 (GST-inclusive; she is not registered for GST). The property is rented at commercial rates and the heater is used 100% to produce assessable rental income. Assets costing $300 or LESS can be claimed as an immediate deduction in the year first used for a taxable purpose; assets costing MORE than $300 must be depreciated over their effective life (for a heater, 15 years). The heater is not part of a set.

What deduction can Olivia claim for the heater in 2024-25?

A. $150
B. $300
C. $20
D. $40",$150,$300,$20,$40,B,$300,300.0,AUD,"The heater costs exactly $300, which is '$300 or less', so it qualifies for an immediate deduction → It is used 100% for a taxable (rental) purpose, so no private-use reduction applies → Immediate deduction = full cost = 300","{""$150"": ""Wrongly apportioned the cost by 50% as if the asset were used half privately"", ""$300"": ""Correct answer"", ""$20"": ""Depreciated the asset over 15 years at the prime cost rate instead of an immediate deduction"", ""$40"": ""Trap: depreciated the asset at the diminishing value rate instead of claiming the immediate deduction available at exactly $300""}","{""formula"": ""cost"", ""params"": {""cost"": 300, ""effective_life"": 15, ""dv_factor"": 2.0, ""half"": 0.5}, ""expected"": 300.0}"
Q022,Individual income tax,"Net capital gain (prior-year loss then 50% discount) added to salary, then income tax plus Medicare levy",Income tax (individual),2023-24,hard,"[""ITAA 1997 s 102-5"", ""ITAA 1997 s 102-15"", ""ITAA 1997 s 115-100"", ""ITAA 1997 s 4-10"", ""Medicare Levy Act 1986 s 6""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/using-capital-losses-to-reduce-capital-gains,"Daniel is an Australian resident for the year ended 30 June 2024. His only salary is $78,000. During 2023-24 he sold parcels of shares he had held for more than 3 years, making a total capital gain (before any discount) of $30,000, all of which qualifies for the 50% CGT discount. He also has a carried-forward net capital loss of $6,000 from an earlier year. He has no other income, deductions or offsets. Capital losses must be applied to the capital gain BEFORE the 50% CGT discount. For 2023-24 the resident rates are: nil up to $18,200; 19c per $1 from $18,201 to $45,000; $5,092 plus 32.5c per $1 from $45,001 to $120,000; plus a 2% Medicare levy on taxable income.

What is Daniel's income tax payable (including the 2% Medicare levy) for 2023-24?

A. $20,482
B. $22,552
C. $21,517
D. $19,717","$20,482","$22,552","$21,517","$19,717",C,"$21,517",21517.0,AUD,"Apply the carried-forward capital loss BEFORE the discount: 30,000 - 6,000 = 24,000 → Apply the 50% CGT discount: 24,000 x 0.5 = 12,000 (net capital gain) → Taxable income = salary 78,000 + net capital gain 12,000 = 90,000 → Income tax (2023-24 bracket $45,001-$120,000) = 5,092 + (90,000 - 45,000) x 0.325 = 5,092 + 14,625 = 19,717 → Medicare levy = 90,000 x 0.02 = 1,800 → Income tax payable incl Medicare levy = 19,717 + 1,800 = 21,517","{""$20,482"": ""Wrong order: applied the 50% discount to the gain BEFORE deducting the prior-year capital loss (loss applied to the already-halved gain)"", ""$22,552"": ""Ignored the carried-forward $6,000 capital loss entirely"", ""$21,517"": ""Correct answer"", ""$19,717"": ""Forgot to add the 2% Medicare levy on taxable income""}","{""formula"": ""base + ((salary + (gross_gain - prior_loss) * discount_rate) - threshold) * marginal_rate + (salary + (gross_gain - prior_loss) * discount_rate) * medicare_rate"", ""params"": {""salary"": 78000, ""gross_gain"": 30000, ""prior_loss"": 6000, ""discount_rate"": 0.5, ""base"": 5092, ""threshold"": 45000, ""marginal_rate"": 0.325, ""medicare_rate"": 0.02}, ""expected"": 21517.0}"
Q023,CGT,Indexation method – investment property acquired before 21 Sep 1999,Income tax (CGT),2024-25,hard,"[""ITAA 1997 s 104-10"", ""ITAA 1997 s 110-25"", ""ITAA 1997 s 114-1""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/indexing-the-cost-base,"Gordon bought an investment property for $200,000 under a contract dated 18 May 1992 (deposit $20,000, balance $180,000 on settlement), paying $7,000 stamp duty and $3,000 solicitor's fees, all before 21 September 1999. He sold it on 12 November 2024 for $850,000, incurring $2,000 solicitor's fees and $20,000 agent's commission on sale. Indexing the pre-1999 acquisition costs gives indexed amounts of $24,400 (deposit) + $219,600 (balance) + $7,850 (stamp duty) + $3,090 (solicitor's fees) = $254,940; adding the non-indexable sale costs ($2,000 + $20,000) gives a total indexed cost base of $276,940.

What is Gordon's capital gain on the property using the indexation method?

A. $309,000
B. $286,530
C. $573,060
D. $618,000","$309,000","$286,530","$573,060","$618,000",C,"$573,060",573060.0,AUD,"Indexed acquisition costs = 24,400 + 219,600 + 7,850 + 3,090 = 254,940 → Add non-indexable sale costs: 254,940 + 2,000 + 20,000 = 276,940 (total indexed cost base) → Capital gain (indexation method) = 850,000 - 276,940 = 573,060 → Under the indexation method the CGT discount does not apply","{""$309,000"": ""Used the discount method on the unindexed cost base ($177,500) instead of indexation"", ""$286,530"": ""Wrongly applied the 50% discount on top of the indexation method"", ""$573,060"": ""Correct answer"", ""$618,000"": ""Subtracted the unindexed cost base, ignoring indexation entirely""}","{""formula"": ""proceeds - indexed_cost_base"", ""params"": {""proceeds"": 850000, ""indexed_cost_base"": 276940, ""plain_cost_base"": 232000, ""discount_rate"": 0.5}, ""expected"": 573060.0}"
Q024,Study and training loans,HELP/student loan – 2025-26 marginal repayment on repayment income build-up,Compulsory study and training loan repayment,2025-26,hard,"[""Higher Education Support Act 2003 s 154-1"", ""Higher Education Support Act 2003 s 154-20""]",https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds,"Mia has a HELP debt. For 2025-26 her repayment income is built up as taxable income $70,000 plus a net investment loss of $5,000 plus reportable super contributions of $3,000, giving repayment income of $78,000. From 2025-26 compulsory repayments are MARGINAL: for repayment income in the $67,001 - $125,000 band the repayment is 15c for each $1 OVER the $67,000 minimum threshold (not a flat percentage of the whole income).

What is Mia's compulsory HELP repayment for 2025-26?

A. $900
B. $450
C. $1,650
D. $11,700",$900,$450,"$1,650","$11,700",C,"$1,650",1650.0,AUD,"Repayment income = 70,000 + 5,000 (net investment loss added back) + 3,000 (reportable super) = 78,000. → 78,000 is in the 2025-26 $67,001 - $125,000 band: 15c for each $1 over $67,000. → Repayment = (78,000 - 67,000) x 0.15 = 11,000 x 0.15 = 1,650.","{""$900"": ""Omitted the net investment loss add-back from repayment income"", ""$450"": ""Used taxable income only and forgot to add the net investment loss and reportable super to repayment income"", ""$1,650"": ""Correct answer"", ""$11,700"": ""Applied 15% to the whole repayment income (old flat-rate method) instead of only the amount over $67,000""}","{""formula"": ""((taxable_income + net_investment_loss + reportable_super) - threshold) * marginal_rate"", ""params"": {""taxable_income"": 70000, ""net_investment_loss"": 5000, ""reportable_super"": 3000, ""threshold"": 67000, ""marginal_rate"": 0.15}, ""expected"": 1650.0}"
Q025,Depreciation,Prime cost (straight line) method – full year,"Income tax (capital allowances, Div 40)",2024-25,easy,"[""ITAA 1997 s 40-25"", ""ITAA 1997 s 40-75""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules-capital-allowances/prime-cost-straight-line-and-diminishing-value-methods,"A machine costs $60,000 (after excluding GST the business is entitled to claim) and has an effective life of 8 years. It was acquired on the first day of the income year and is used wholly for a taxable purpose, so it is held for all 365 days of the year. Northbridge Joinery uses the prime cost (straight line) method.

What is the decline in value (depreciation deduction) for the first income year under the prime cost method?

A. $3,750
B. $15,000
C. $60,000
D. $7,500","$3,750","$15,000","$60,000","$7,500",D,"$7,500",7500.0,AUD,"Prime cost formula: cost x (days held / 365) x (100% / effective life) → Rate = 100% / 8 years = 12.5% → Decline in value = 60,000 x (365 / 365) x 12.5% = 7,500","{""$3,750"": ""Wrongly halved the straight-line amount"", ""$15,000"": ""Applied the diminishing value 200% rate instead of the prime cost 100% rate"", ""$60,000"": ""Forgot to divide by the effective life (omitted the rate entirely)"", ""$7,500"": ""Correct answer""}","{""formula"": ""cost * (days_held / days_year) * (1 / effective_life)"", ""params"": {""cost"": 60000, ""days_held"": 365, ""days_year"": 365, ""effective_life"": 8, ""dv_factor"": 2.0}, ""expected"": 7500.0}"
Q026,FBT,Type 1 gross-up of GST-inclusive car fringe benefits (higher gross-up rate 2.0802),Fringe benefits tax (car fringe benefits),2022-23,medium,"[""FBTAA 1986 s 5B"", ""FBTAA 1986 s 136(1)""]",https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/calculating-your-fbt,"Verdant Foods Pty Ltd provides fringe benefits to its two employees, Carlos and Yuki. The GST-inclusive benefits for which Verdant Foods can claim a GST credit (type 1 benefits) are: a car fringe benefit for Carlos with a taxable value of $9,900, a car fringe benefit for Yuki with a taxable value of $8,800, and restaurant meals for both employees with a taxable value of $4,400. The total type 1 (GST-inclusive) taxable value is $23,100. The type 1 (higher) gross-up rate is 2.0802.

What is Verdant Foods' type 1 grossed-up amount for these GST-inclusive fringe benefits?

A. $23,100
B. $43,585
C. $22,585
D. $48,053","$23,100","$43,585","$22,585","$48,053",D,"$48,053",48053.0,AUD,"Add the taxable values of all fringe benefits that included GST: 9,900 (car) + 8,800 (car) + 4,400 (meals) = 23,100 → Multiply by the higher (type 1) gross-up rate of 2.0802 because a GST credit is available → 23,100 x 2.0802 = 48,053 (rounded to nearest dollar)","{""$23,100"": ""Forgot to gross up the taxable value at all"", ""$43,585"": ""Used the type 2 (lower) gross-up rate 1.8868 instead of the type 1 rate 2.0802"", ""$22,585"": ""Applied the 47% FBT rate at the gross-up step instead of producing the grossed-up amount"", ""$48,053"": ""Correct answer""}","{""formula"": ""round(gst_inclusive_value * type1_rate)"", ""params"": {""gst_inclusive_value"": 23100, ""type1_rate"": 2.0802, ""type2_rate"": 1.8868}, ""expected"": 48053.0}"
Q027,Rental property,Net rental income or loss – summing income and expense lines including capital works,Income tax (rental),2024-25,hard,"[""ITAA 1997 s 8-1"", ""ITAA 1997 s 6-5"", ""ITAA 1997 Div 43"", ""ITAA 1997 s 43-25""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/worksheet-work-out-your-net-rental-income-or-loss,"Priya owns a rental property for the whole of 2024-25. She receives $28,600 in rent plus $400 of other rental-related income. Her deductible rental expenses are: loan interest $19,200, council rates $2,100, insurance $1,300, property agent fees $2,288 and deductible repairs $900. A quantity surveyor's report shows the building's capital works deduction (Division 43, 2.5% of a $140,000 construction cost) is $3,500 for the year. During the year Priya also paid $4,500 to build a brand-new pergola; this is a capital improvement that is not an immediate ('repairs') deduction.

What is Priya's net rental income or loss for 2024-25?

A. -$288
B. -$4,788
C. -$688
D. $3,212",-$288,"-$4,788",-$688,"$3,212",A,-$288,-288.0,AUD,"Gross rent = rent 28,600 + other rental income 400 = 29,000 → Deductible expenses = interest 19,200 + council rates 2,100 + insurance 1,300 + agent fees 2,288 + repairs 900 + capital works 3,500 = 29,288 → The $4,500 new pergola is a capital improvement, not an immediate repair, so it is NOT included in current-year expenses → Net rental income or loss = 29,000 − 29,288 = −288 (a net rental loss)","{""-$288"": ""Correct answer"", ""-$4,788"": ""Wrongly deducted the $4,500 new pergola (a capital improvement) as an immediate expense"", ""-$688"": ""Forgot the $400 of other rental-related income in gross rent"", ""$3,212"": ""Omitted the $3,500 capital works (Division 43) deduction""}","{""formula"": ""(rent + other_income) - (interest + council_rates + insurance + agent_fees + repairs + capital_works)"", ""params"": {""rent"": 28600, ""other_income"": 400, ""interest"": 19200, ""council_rates"": 2100, ""insurance"": 1300, ""agent_fees"": 2288, ""repairs"": 900, ""capital_works"": 3500, ""pergola"": 4500}, ""expected"": -288.0}"
Q028,Superannuation,Super guarantee – OTE excludes overtime,Superannuation (super guarantee),2025-26,medium,"[""Superannuation Guarantee (Administration) Act 1992 s 6(1)"", ""Superannuation Guarantee (Administration) Act 1992 s 19""]",https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay,"For the fortnightly pay period ending 30 June 2025, Marco's pay (paid by Olivia on 3 July 2025) includes salary of $3,200, a higher duties allowance of $600, overtime of $142.55 and an overtime meal allowance of $30. Overtime and overtime meal allowances are not in respect of ordinary hours, so they are excluded from OTE. Because Olivia pays on 3 July 2025, the 2025-26 super guarantee rate of 12% applies.

What is Olivia's minimum super guarantee contribution for Marco for this pay period?

A. $476.71
B. $473.11
C. $456.00
D. $384.00",$476.71,$473.11,$456.00,$384.00,C,$456.00,456.0,AUD,"Ordinary time earnings = salary $3,200 + higher duties allowance $600 = $3,800 (overtime and overtime meal allowance are excluded) → Super guarantee rate (payment made 3 July 2025) = 12% (rate kept fixed from the base example) → SG = 3,800 x 12% = $456","{""$476.71"": ""Included overtime and the overtime meal allowance in OTE"", ""$473.11"": ""Included overtime in OTE"", ""$456.00"": ""Correct answer"", ""$384.00"": ""Left out the higher duties allowance, which is part of OTE""}","{""formula"": ""(salary + higher_duties) * sg_rate"", ""params"": {""salary"": 3200, ""higher_duties"": 600, ""overtime"": 142.55, ""overtime_meal"": 30, ""sg_rate"": 0.12}, ""expected"": 456.0}"
Q029,FBT,FBT payable – fringe benefits taxable amount multiplied by FBT rate 47%,Fringe benefits tax (car fringe benefits),2022-23,easy,"[""FBTAA 1986 s 66"", ""FBTAA 1986 s 5B""]",https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/calculating-your-fbt,"After grossing up its benefits, Verdant Foods Pty Ltd (which provided car fringe benefits to Carlos and Yuki plus meals and gym memberships) has a total fringe benefits taxable amount of $61,800 (the type 1 grossed-up amount of $48,053 plus the type 2 grossed-up amount of $13,747). The FBT rate for the year is 47%.

How much FBT must Verdant Foods pay for the FBT year?

A. $29,046.00
B. $61,800.00
C. $27,810.00
D. $60,421.49","$29,046.00","$61,800.00","$27,810.00","$60,421.49",A,"$29,046.00",29046.0,AUD,"Total fringe benefits taxable amount = type 1 grossed-up (48,053) + type 2 grossed-up (13,747) = 61,800 → Multiply by the FBT rate of 47% → 61,800 x 0.47 = 29,046","{""$29,046.00"": ""Correct answer"", ""$61,800.00"": ""Reported the fringe benefits taxable amount without applying the FBT rate"", ""$27,810.00"": ""Used a 45% rate instead of the 47% FBT rate"", ""$60,421.49"": ""Grossed up a second time by 2.0802 before applying the FBT rate""}","{""formula"": ""fringe_benefits_taxable_amount * fbt_rate"", ""params"": {""fringe_benefits_taxable_amount"": 61800, ""fbt_rate"": 0.47, ""type1_rate"": 2.0802}, ""expected"": 29046.0}"
Q030,GST,"Sale of existing residential premises – input-taxed, no GST",GST,2024-25,medium,"[""GST Act 1999 s 40-65"", ""GST Act 1999 s 9-30(2)""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/when-to-charge-gst-and-when-not-to/input-taxed-sales/residential-premises,"Rivermont Pty Ltd, registered for GST, sells an existing residential house (not new residential premises and not commercial residential premises) for $660,000. The premises have only ever been used as a residence.

How much GST is payable on the sale of the residential premises?

A. $66,000
B. $60,000
C. $0
D. $600,000","$66,000","$60,000",$0,"$600,000",C,$0,0.0,AUD,"The sale of existing residential premises is an input-taxed sale → On an input-taxed sale the seller is not liable for GST and does not charge GST → The 1/11 GST calculation does NOT apply, so GST payable = $0","{""$66,000"": ""Applied 10% GST to the sale price, ignoring that residential premises are input-taxed"", ""$60,000"": ""Wrongly applied the 1/11 GST fraction to the GST-inclusive price as if it were a taxable sale"", ""$0"": ""Correct answer"", ""$600,000"": ""Reported the GST-exclusive price instead of recognising there is no GST at all""}","{""formula"": ""0 * sale_price"", ""params"": {""sale_price"": 660000, ""gst_fraction"": 0.09090909090909091, ""gst_rate"": 0.1}, ""expected"": 0.0}"
Q031,Superannuation,Unused concessional cap accumulated in a single year,Superannuation (concessional contributions cap),2018-19,easy,"[""ITAA 1997 s 291-20""]",https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap,"In 2018-19 Diego and his employer made only $7,500 of super guarantee concessional contributions. The concessional contributions cap for 2018-19 was $25,000. Carry-forward of unused concessional cap amounts can be accumulated starting from 2018-19.

What unused concessional contributions cap did Diego accumulate in 2018-19?

A. $32,500
B. $25,000
C. $20,000
D. $17,500","$32,500","$25,000","$20,000","$17,500",D,"$17,500",17500.0,AUD,"2018-19 concessional contributions cap = $25,000 (cap kept fixed from the base example) → Concessional contributions made = $7,500 super guarantee → Unused cap accumulated = 25,000 - 7,500 = $17,500","{""$32,500"": ""Added the contributions to the cap instead of subtracting them"", ""$25,000"": ""Forgot to subtract the $7,500 already contributed"", ""$20,000"": ""Used a later year's $27,500 cap instead of the 2018-19 cap of $25,000"", ""$17,500"": ""Correct answer""}","{""formula"": ""annual_cap_1819 - contributions_1819"", ""params"": {""annual_cap_1819"": 25000, ""contributions_1819"": 7500, ""annual_cap_2122"": 27500}, ""expected"": 17500.0}"
Q032,FBT,Expense payment fringe benefit – otherwise deductible rule (home phone),Fringe benefits tax,2025-26,easy,"[""FBTAA 1986 s 23"", ""FBTAA 1986 s 24""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2026-instructions/item-23-fringe-benefit-categories-for-fbt-return-2026,"Meridian Property Group pays its employee Lachlan Frost's home telephone bill of $1,800 for the FBT year ending 31 March 2026. On 31 March 2026 Lachlan provides a declaration stating that 45% of the calls are for business purposes (and are therefore otherwise deductible) and the other 55% are private calls. This reimbursement is an expense payment fringe benefit.

What is the taxable value of the expense payment fringe benefit after applying the otherwise deductible rule?

A. $271.69
B. $990.00
C. $1,800.00
D. $810.00",$271.69,$990.00,"$1,800.00",$810.00,B,$990.00,990.0,AUD,"Gross taxable value of the expense payment fringe benefit = amount paid = 1,800 → Otherwise deductible amount = 1,800 x 45% = 810 → Taxable value = 1,800 - 810 = 990 → FBT rate for the year is 47% and loan/expense benefits with no GST credit gross up at the Type 2 rate of 1.8868, but the taxable value itself is 990 before grossing up","{""$271.69"": ""Grossed up the deductible reduction by the Type 2 factor before subtracting"", ""$990.00"": ""Correct answer"", ""$1,800.00"": ""Used the full bill as the taxable value, ignoring the otherwise deductible rule"", ""$810.00"": ""Reported the deductible (otherwise deductible) portion as the taxable value instead of the private portion""}","{""formula"": ""bill - bill * deductible_pct"", ""params"": {""bill"": 1800, ""deductible_pct"": 0.45}, ""expected"": 990.0}"
Q033,CGT,CGT discount method – investment property (single asset),Income tax (CGT),2024-25,easy,"[""ITAA 1997 s 104-10"", ""ITAA 1997 s 110-25"", ""ITAA 1997 s 115-100""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/how-to-calculate-your-cgt,"Daniel buys an investment property for $560,000 and sells it 6 years later for $880,000. His cost base is $615,000, made up of the $560,000 purchase price plus $22,000 stamp duty and $1,800 conveyancing fees on purchase, and $1,400 conveyancing fees and $29,800 agent's commission on sale. He has no other capital gains or losses.

What is Daniel's net capital gain on the investment property after the CGT discount?

A. $66,250
B. $440,000
C. $132,500
D. $265,000","$66,250","$440,000","$132,500","$265,000",C,"$132,500",132500.0,AUD,"Capital proceeds = 880,000 → Cost base = 615,000 (purchase price + acquisition costs + disposal costs) → Capital gain = 880,000 - 615,000 = 265,000 → Apply 50% CGT discount (held more than 12 months, Australian resident): 265,000 x 0.5 = 132,500","{""$66,250"": ""Applied the 50% discount twice"", ""$440,000"": ""Applied the discount to the sale proceeds instead of the gain"", ""$132,500"": ""Correct answer"", ""$265,000"": ""Reported the gross capital gain without applying the 50% CGT discount""}","{""formula"": ""(proceeds - cost_base) * discount_rate"", ""params"": {""proceeds"": 880000, ""cost_base"": 615000, ""discount_rate"": 0.5}, ""expected"": 132500.0}"
Q034,FBT,"Car fringe benefit – statutory formula method (days apportioned, no employee contribution)",Fringe benefits tax (car fringe benefits),2016-17,easy,"[""FBTAA 1986 s 9"", ""FBTAA 1986 s 162C""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2017-completing-your-return/fringe-benefit-categories/a-cars-using-the-statutory-formula,"On 20 August 2016 Brightwater Logistics Pty Ltd agreed to provide its employee Dilan Reddy with a car fringe benefit. The car was delivered on 25 August 2016 and was available to Dilan for private use from that date until the end of the FBT year (31 March 2017), a total of 219 days. Over that period the car travelled 24,500 kilometres. The base value of the car is $45,000. There is no pre-existing commitment, so the flat statutory rate of 20% applies. Dilan did not make any contributions.

What is the taxable value of the car fringe benefit using the statutory formula method for the FBT year ending 31 March 2017?

A. $9,000
B. $15,000
C. $7,020
D. $5,400","$9,000","$15,000","$7,020","$5,400",D,"$5,400",5400.0,AUD,"Statutory formula method: taxable value = (A x B x C / D) - E → A = base value = 45,000; B = statutory rate = 20% (flat 20% applies from 1 April 2014 where there is no pre-existing commitment); C = days available for private use = 219; D = days in FBT year = 365; E = employee contribution = 0 → (45,000 x 0.20 x 219) / 365 = 5,400 (rounded to nearest dollar)","{""$9,000"": ""Forgot to apportion by the days the car was available (used the full-year value)"", ""$15,000"": ""Inverted the days fraction (multiplied by 365/219 instead of 219/365)"", ""$7,020"": ""Used the 26% pre-existing-commitment rate (under 15,000 km) instead of the flat 20% statutory rate"", ""$5,400"": ""Correct answer""}","{""formula"": ""base_value * statutory_rate * days_available / days_in_year"", ""params"": {""base_value"": 45000, ""statutory_rate"": 0.2, ""days_available"": 219, ""days_in_year"": 365, ""employee_contribution"": 0}, ""expected"": 5400.0}"
Q035,CGT,"Inherited property partial exemption – previously inherited, days-based",Income tax (CGT),2024-25,hard,"[""ITAA 1997 s 118-195"", ""ITAA 1997 s 118-185"", ""ITAA 1997 s 128-15""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax/calculating-a-partial-exemption-for-inherited-property,"Idris acquired a property after 20 September 1985 and owned it for 4,500 days, during which it was his main residence throughout. He left it to his daughter Noor, who owned it for 3,000 days and never used it as her main residence. When Noor died she left it to Lakshmi, who owned it for 900 days and never used it as her main residence. Lakshmi sold the property and made a capital gain of $540,000. The taxable proportion is the days the property was not a main residence (3,000 + 900) divided by the total days from when Idris first acquired it until Lakshmi sold it (3,000 + 900 + 4,500).

What is the taxable proportion of Lakshmi's $540,000 capital gain before any discount?

A. $468,000.00
B. $250,714.29
C. $289,285.71
D. $125,357.14","$468,000.00","$250,714.29","$289,285.71","$125,357.14",B,"$250,714.29",250714.29,AUD,"Non-main-residence days = 3,000 (Noor) + 900 (Lakshmi) = 3,900 → Total days = 3,900 + 4,500 (Idris, main residence) = 8,400 → Taxable proportion = 540,000 x (3,900 / 8,400) = 250,714 (rounded to nearest dollar) → The 50% discount may then be applied separately as the combined ownership exceeded 12 months","{""$468,000.00"": ""Divided by main-residence days only instead of total ownership days"", ""$250,714.29"": ""Correct answer"", ""$289,285.71"": ""Used main-residence days in the numerator instead of non-main-residence days"", ""$125,357.14"": ""Applied the 50% discount, but the question asks for the taxable proportion before the discount""}","{""formula"": ""total_gain * non_main_days / total_days"", ""params"": {""total_gain"": 540000, ""non_main_days"": 3900, ""total_days"": 8400, ""discount_rate"": 0.5}, ""expected"": 250714.29}"
Q036,Individual income tax,Income tax plus Medicare levy with an exempt receipt as a red herring,Income tax (individual),2023-24,medium,"[""ITAA 1997 s 4-10"", ""Income Tax Rates Act 1986 Sch 7"", ""Medicare Levy Act 1986 s 6"", ""ITAA 1997 s 6-20""]",https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents,"Priya is an Australian resident for the year ended 30 June 2024 with a taxable income of $60,000. During the year she also received a $1,500 government disaster relief payment that is exempt income (not assessable and not included in taxable income). Priya is 67 years old. For 2023-24 the resident rates are: nil up to $18,200; 19c per $1 from $18,201 to $45,000; $5,092 plus 32.5c per $1 from $45,001 to $120,000; plus a 2% Medicare levy on taxable income.

What is Priya's income tax payable (including the 2% Medicare levy) on her taxable income of $60,000 for 2023-24?

A. $20,700.00
B. $11,684.50
C. $9,967.00
D. $11,167.00","$20,700.00","$11,684.50","$9,967.00","$11,167.00",D,"$11,167.00",11167.0,AUD,"The $1,500 disaster relief payment is exempt income and Priya's age (67) does not change these rates, so both are ignored → Income tax (2023-24 bracket $45,001-$120,000) = 5,092 + (60,000 − 45,000) × 0.325 = 5,092 + 4,875 = 9,967 → Medicare levy = 60,000 × 0.02 = 1,200 → Income tax payable incl Medicare levy = 9,967 + 1,200 = 11,167","{""$20,700.00"": ""Applied 32.5% to the whole income instead of only the amount over $45,000 (and dropped the base amount)"", ""$11,684.50"": ""Wrongly added the $1,500 exempt disaster relief payment to taxable income"", ""$9,967.00"": ""Forgot to add the 2% Medicare levy"", ""$11,167.00"": ""Correct answer""}","{""formula"": ""base + (taxable_income - threshold) * marginal_rate + taxable_income * medicare_rate"", ""params"": {""taxable_income"": 60000, ""base"": 5092, ""threshold"": 45000, ""marginal_rate"": 0.325, ""medicare_rate"": 0.02, ""disaster_relief"": 1500, ""age"": 67}, ""expected"": 11167.0}"
Q037,GST,Margin scheme on subdivided land – GST = (sale price − apportioned cost) / 11,GST,2018-19,medium,"[""GST Act s 75-10"", ""GST Act s 75-15""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/property/gst-and-the-margin-scheme/calculating-the-gst-payable,"Riverstone Developments is a GST-registered property developer. It bought a 2,500 square metre block of land for $275,000 from a private individual who wasn't required to be registered for GST. The block is of equal value per square metre. Riverstone subdivided it into a 1,000 sqm lot and a 1,500 sqm lot, using an area basis to work out the purchase price of each lot, so the 1,000 sqm lot's purchase price is 1,000 / 2,500 x $275,000 = $110,000. Riverstone sells the 1,000 sqm lot for $187,000 under the margin scheme.

How much GST is payable on the sale of the 1,000 sqm subdivided lot under the margin scheme?

A. $17,000
B. $7,000
C. -$8,000
D. $7,700","$17,000","$7,000","-$8,000","$7,700",B,"$7,000",7000.0,AUD,"Apportioned purchase price of the 1,000 sqm lot = 1,000 / 2,500 x 275,000 = 110,000 → Margin = sale price - apportioned purchase price = 187,000 - 110,000 = 77,000 → GST = one eleventh of the margin = 77,000 / 11 = 7,000","{""$17,000"": ""Applied 1/11 to the full sale price instead of the margin"", ""$7,000"": ""Correct answer"", ""-$8,000"": ""Subtracted the whole block's $275,000 cost instead of the apportioned $110,000 for the lot sold"", ""$7,700"": ""Took 10% of the GST-inclusive margin instead of 1/11""}","{""formula"": ""(sale_price - apportioned_cost) / 11"", ""params"": {""sale_price"": 187000, ""apportioned_cost"": 110000, ""total_block_cost"": 275000}, ""expected"": 7000.0}"
Q038,GST,Margin scheme – GST = margin / 11 (vacant land improved and resold),GST,2018-19,easy,"[""A New Tax System (Goods and Services Tax) Act 1999 s 75-5"", ""GST Act s 75-10""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/property/gst-and-the-margin-scheme/calculating-the-gst-payable,"Marco is registered for GST. On 25 September 2017 he buys vacant land for $660,000 from Lena, who isn't registered for GST. Marco improves the property with roads and other services and sells it to a developer for $935,000 on 2 October 2018. He chooses to use the margin scheme to work out the GST on the sale.

How much GST must Marco pay on the sale under the margin scheme?

A. $27,500
B. $85,000
C. $12,500
D. $25,000","$27,500","$85,000","$12,500","$25,000",D,"$25,000",25000.0,AUD,"Margin = sale price - purchase price = 935,000 - 660,000 = 275,000 → Under the margin scheme, GST = one eleventh of the margin → GST = 275,000 / 11 = 25,000","{""$27,500"": ""Took 10% of the GST-inclusive margin instead of 1/11"", ""$85,000"": ""Applied 1/11 to the full sale price instead of the margin (ignored the margin scheme)"", ""$12,500"": ""Halved the GST as if a CGT-style 50% discount applied"", ""$25,000"": ""Correct answer""}","{""formula"": ""(sale_price - purchase_price) / 11"", ""params"": {""sale_price"": 935000, ""purchase_price"": 660000}, ""expected"": 25000.0}"
Q039,Rental property,Holiday home with owner private use (net rental loss after apportionment),Income tax (rental),2024-25,medium,"[""ITAA 1997 s 8-1"", ""IT 2167""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses,"Rosalind and Quentin jointly own a property they rent out at market rates and also use as a holiday home for 7 weeks during the year. Their total expenses for the property are $45,175, of which $2,275 is the agent's commission and advertising (fully deductible). The remaining $42,900 of expenses must be apportioned to the proportion of the year the property was rented out or genuinely available for rent (45 of 52 weeks). They received $31,200 in rent.

What rental loss do Rosalind and Quentin report for the year (combined)?

A. -$7,893.75
B. $23,150.00
C. -$13,975.00
D. -$8,200.00","-$7,893.75","$23,150.00","-$13,975.00","-$8,200.00",D,"-$8,200.00",-8200.0,AUD,"Apportion general expenses to the 45 weeks available for rent: (45 / 52) x 42,900 = 37,125 → Add the fully deductible agent commission and advertising: 37,125 + 2,275 = 39,400 total deductions → Rental loss = rent 31,200 - deductions 39,400 = -8,200","{""-$7,893.75"": ""Apportioned the agent commission/advertising too, instead of claiming it in full"", ""$23,150.00"": ""Apportioned using the 4 private-use weeks instead of the 48 weeks available for rent"", ""-$13,975.00"": ""Deducted the full year of expenses without apportioning for the 4 weeks of private use"", ""-$8,200.00"": ""Correct answer""}","{""formula"": ""rent_received - ((weeks_available / weeks_in_year) * apportionable_expenses + agent_costs)"", ""params"": {""rent_received"": 31200, ""apportionable_expenses"": 42900, ""weeks_available"": 45, ""weeks_in_year"": 52, ""agent_costs"": 2275}, ""expected"": -8200.0}"
Q040,CGT,"Multi-step: prior-year loss, then current-year loss, then discount (order matters)",Income tax (CGT),2024-25,hard,"[""ITAA 1997 s 102-5"", ""ITAA 1997 s 102-15"", ""ITAA 1997 s 115-100""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/how-to-calculate-your-cgt,"In 2024-25 Wei makes a discount-eligible capital gain of $80,000 on an investment property held for 7 years. In the same year he makes a $6,000 capital loss on shares. He also has a net capital loss of $14,000 carried forward from an earlier income year. Per the ATO steps, all capital losses (prior-year first, then current-year) are subtracted from the gain before the 50% discount is applied to what remains.

What is Wei's net capital gain for 2024-25 after applying both capital losses and the CGT discount?

A. $30,000
B. $37,000
C. $20,000
D. $60,000","$30,000","$37,000","$20,000","$60,000",A,"$30,000",30000.0,AUD,"Subtract the prior-year net capital loss first: 80,000 - 14,000 = 66,000 → Subtract the current-year capital loss: 66,000 - 6,000 = 60,000 → Apply the 50% CGT discount to the remaining gain: 60,000 x 0.5 = 30,000","{""$30,000"": ""Correct answer"", ""$37,000"": ""Subtracted only the current-year loss and ignored the carried-forward prior-year loss"", ""$20,000"": ""Trap: applied the 50% discount before subtracting the losses (wrong order)"", ""$60,000"": ""Subtracted both losses but forgot to apply the 50% discount""}","{""formula"": ""(property_gain - prior_loss - current_loss) * discount_rate"", ""params"": {""property_gain"": 80000, ""current_loss"": 6000, ""prior_loss"": 14000, ""discount_rate"": 0.5}, ""expected"": 30000.0}"
Q041,Superannuation,Concessional cap headroom after employer SG (OTE × rate) plus salary sacrifice,Superannuation (concessional contributions cap),2025-26,medium,"[""ITAA 1997 s 291-20"", ""Superannuation Guarantee (Administration) Act 1992 s 19""]",https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/salary-sacrificing-super,"In 2025-26 Leah's ordinary time earnings (OTE) are $90,000, on which her employer must pay super guarantee (SG) at the 2025-26 rate of 12%. She also enters a salary-sacrifice arrangement to put an extra $12,000 into super; salary-sacrificed amounts are concessional contributions and count towards the concessional contributions cap. The concessional contributions cap for 2025-26 is $30,000. She has no carried-forward unused cap.

How much further concessional contribution headroom does Leah have under her 2025-26 concessional cap after her employer SG and salary sacrifice?

A. $7,650
B. $7,200
C. $18,000
D. $19,200","$7,650","$7,200","$18,000","$19,200",B,"$7,200",7200.0,AUD,"Employer SG = OTE × 12% = 90,000 × 0.12 = 10,800 → Salary-sacrifice contributions = 12,000 (these are concessional and count towards the cap) → Total concessional contributions used = 10,800 + 12,000 = 22,800 → Headroom = concessional cap − contributions used = 30,000 − 22,800 = 7,200","{""$7,650"": ""Used the 2024-25 SG rate of 11.5% instead of the 2025-26 rate of 12%"", ""$7,200"": ""Correct answer"", ""$18,000"": ""Counted only the salary sacrifice against the cap and ignored the employer SG (which is also concessional)"", ""$19,200"": ""Counted only the employer SG and ignored the $12,000 salary-sacrifice amount""}","{""formula"": ""cc_cap - (ote*sg_rate + salary_sacrifice)"", ""params"": {""ote"": 90000, ""sg_rate"": 0.12, ""salary_sacrifice"": 12000, ""cc_cap"": 30000, ""old_sg_rate"": 0.115}, ""expected"": 7200.0}"
Q042,Depreciation,"Immediate deduction threshold – asset costing $301 (just over, must depreciate)","Income tax (capital allowances, Div 40)",2024-25,medium,"[""ITAA 1997 s 40-80(2)"", ""ITAA 1997 s 40-25"", ""ITAA 1997 s 40-70""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/rental-expenses/depreciating-assets-in-rental-properties,"Sanjay buys a depreciating asset (a freestanding microwave) for his residential rental property for $301 (he is not registered for GST). The asset is held for the full 365 days of the year and used 100% to produce assessable rental income. Because the cost is MORE than $300, he cannot claim an immediate deduction; he must claim the decline in value over its effective life of 10 years. He chooses the diminishing value method (200% rate), and in the first year the base value equals the $301 cost.

What decline-in-value deduction can Sanjay claim for the microwave in its first year (diminishing value method)?

A. $30.10
B. $45.15
C. $60.20
D. $301.00",$30.10,$45.15,$60.20,$301.00,C,$60.20,60.2,AUD,"Cost is $301, which is MORE than $300, so no immediate deduction is available → Diminishing value rate = 200% / 10 years = 20% → Decline in value = 301 x (365/365) x (2.0/10) = 60.20","{""$30.10"": ""Used the prime cost 100% rate instead of the diminishing value 200% rate"", ""$45.15"": ""Used the old 150% diminishing value rate (for assets first held before 10 May 2006) instead of the 200% rate"", ""$60.20"": ""Correct answer"", ""$301.00"": ""Trap: claimed the full $301 as an immediate deduction, but at $301 the asset is over the $300 threshold and must be depreciated""}","{""formula"": ""cost * (days_held / days_year) * (dv_factor / effective_life)"", ""params"": {""cost"": 301, ""days_held"": 365, ""days_year"": 365, ""effective_life"": 10, ""dv_factor"": 2.0}, ""expected"": 60.2}"
Q043,Individual income tax,Medicare levy reduction for low-income earners (shade-in),Medicare levy,2024-25,medium,"[""Medicare Levy Act 1986 s 7"", ""Medicare Levy Act 1986 s 8""]",https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-reduction/medicare-levy-reduction-for-low-income-earners,"Bianca's taxable income is $31,500. She is single with no dependants and isn't entitled to SAPTO. For 2024-25 a single taxpayer's Medicare levy is reduced (shaded in) where taxable income is between the lower threshold of $27,222 and the upper threshold of $34,027: in the shade-in range the levy is 10c for each $1 of taxable income above the lower threshold (instead of the full 2%). The ATO's calculator shows Bianca's Medicare levy is reduced accordingly.

What is Bianca's reduced Medicare levy for 2024-25?

A. $427.80
B. $85.56
C. $630.00
D. $3,150.00",$427.80,$85.56,$630.00,"$3,150.00",A,$427.80,427.8,AUD,"Kept taxable income within the 2024-25 single shade-in band ($27,222 lower to $34,027 upper threshold) → In the shade-in range the levy = 10c for each $1 of taxable income over the lower threshold → Reduced Medicare levy = (31,500 - 27,222) x 0.10 = 4,278 x 0.10 = 427.80","{""$427.80"": ""Correct answer"", ""$85.56"": ""Applied the 2% rate to the excess over the threshold instead of the 10% shade-in rate"", ""$630.00"": ""Charged the full 2% Medicare levy and ignored the low-income reduction"", ""$3,150.00"": ""Applied the 10% shade-in rate to the whole taxable income instead of only the amount over the lower threshold""}","{""formula"": ""(taxable_income - lower_threshold) * shade_in_rate"", ""params"": {""taxable_income"": 31500, ""lower_threshold"": 27222, ""shade_in_rate"": 0.1, ""full_rate"": 0.02}, ""expected"": 427.8}"
Q044,Superannuation,Super guarantee – maximum contribution base cap,Superannuation (super guarantee),2025-26,medium,"[""Superannuation Guarantee (Administration) Act 1992 s 15"", ""Superannuation Guarantee (Administration) Act 1992 s 19""]",https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay,"Felix is the Operations Manager of Diana's Stationery Pty Ltd. During the July to September quarter of 2025-26, Felix's earnings are $78,000. The quarterly maximum contribution base (MCB) for 2025-26 is $62,500, and the super guarantee rate is 12%. SG is only payable up to the MCB.

What super guarantee must Diana's Stationery Pty Ltd contribute for Felix for the quarter?

A. $9,360
B. $62,500
C. $1,860
D. $7,500","$9,360","$62,500","$1,860","$7,500",D,"$7,500",7500.0,AUD,"Quarterly earnings = $78,000, which (like the base example) exceeds the maximum contribution base, so SG is capped at the MCB of $62,500 → Use the lesser of earnings and the MCB = $62,500 (MCB kept fixed from the base example) → SG = 62,500 x 12% = $7,500 (no SG is payable on OTE above $62,500)","{""$9,360"": ""Applied SG to the full $78,000, ignoring the maximum contribution base cap"", ""$62,500"": ""Reported the MCB amount itself instead of 12% SG on it"", ""$1,860"": ""Applied SG only to the earnings above the MCB"", ""$7,500"": ""Correct answer""}","{""formula"": ""min(earnings, mcb) * sg_rate"", ""params"": {""earnings"": 78000, ""mcb"": 62500, ""sg_rate"": 0.12}, ""expected"": 7500.0}"
Q045,Rental property,"Initial repairs are capital, not a deductible repair (existing defects at purchase)",Income tax (rental),2024-25,medium,"[""ITAA 1997 s 25-10"", ""ITAA 1997 s 25-10(3)"", ""ITAA 1997 Div 43""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/rental-expenses/repair-and-maintenance-expenses,"Liam buys a rental property and, immediately after settlement and before the first tenant moves in, pays $8,000 to fix a damaged ceiling and a rotted fence that were already defective at the date of purchase. In the same year he also pays $1,200 to fix a hot-water system that broke down due to normal wear AFTER the property had been rented. Initial repairs to rectify damage or defects existing at the time of purchase are capital in nature and cannot be claimed as an immediate repair deduction (they are claimed as capital works over 40 years instead). The $1,200 wear-and-tear repair during the rental period is an immediately deductible repair.

What amount can Liam claim as an immediate repairs deduction (section 25-10) in 2024-25?

A. $1,400
B. $1,200
C. $8,000
D. $9,200","$1,400","$1,200","$8,000","$9,200",B,"$1,200",1200.0,AUD,"The $8,000 to rectify defects existing at purchase are INITIAL repairs – capital in nature, not an immediate repair deduction → The $1,200 to fix the hot-water system after wear and tear during the rental period IS an immediately deductible repair → Immediate repairs deduction = 1,200 (the $8,000 is claimed as capital works at 2.5% per year instead)","{""$1,400"": ""Added the first-year 2.5% capital works deduction on the initial repairs to the genuine repair instead of treating them separately"", ""$1,200"": ""Correct answer"", ""$8,000"": ""Claimed only the capital initial repairs as an immediate deduction and missed the genuine $1,200 repair"", ""$9,200"": ""Trap: claimed both amounts as immediate repairs, but the $8,000 initial repairs are capital and not deductible as a repair""}","{""formula"": ""ordinary_repair"", ""params"": {""initial_repairs"": 8000, ""ordinary_repair"": 1200, ""capital_works_rate"": 0.025}, ""expected"": 1200.0}"
Q046,Individual income tax,Foreign income tax offset (FITO) limit,Income tax offset,2023-24,hard,"[""ITAA 1997 s 770-10"", ""ITAA 1997 s 770-75""]",https://www.ato.gov.au/forms-and-instructions/foreign-income-tax-offset-rules-guide-2024/calculate-your-fito-or-offset-limit,"Yuki is an Australian resident for the year ended 30 June 2024. She paid $3,200 of foreign income tax. Because she is claiming more than $1,000, she must work out her foreign income tax offset limit. Step 1 is the tax payable on her actual taxable income of $29,000 (including Medicare levy), which the ATO gives as $2,632.00. Step 2 is the tax that would be payable if her assessable foreign income and related deductions were disregarded, leaving a taxable income of $20,500; the ATO gives this as $437.00 (no Medicare levy, as $20,500 is below the Medicare low-income threshold). The offset limit is Step 1 minus Step 2.

What is Yuki's foreign income tax offset limit for 2023-24?

A. $2,195
B. $3,200
C. $3,069
D. $2,632","$2,195","$3,200","$3,069","$2,632",A,"$2,195",2195.0,AUD,"Step 1: tax payable on actual taxable income $29,000 (incl Medicare levy) = 2,632.00 → Step 2: tax payable disregarding foreign income, on taxable income $20,500 (no Medicare levy) = 437.00 → Step 3: offset limit = Step 1 - Step 2 = 2,632.00 - 437.00 = 2,195.00 → Although Yuki paid $3,200 foreign tax, her offset is limited to $2,195.00","{""$2,195"": ""Correct answer"", ""$3,200"": ""Claimed the full $3,200 foreign tax paid without applying the offset limit"", ""$3,069"": ""Added Step 1 and Step 2 instead of subtracting, then capped at foreign tax paid"", ""$2,632"": ""Used only the Step 1 tax figure as the limit, forgetting to subtract Step 2""}","{""formula"": ""step1_tax - step2_tax"", ""params"": {""step1_tax"": 2632.0, ""step2_tax"": 437.0, ""foreign_tax_paid"": 3200}, ""expected"": 2195.0}"
Q047,Employment,Work-related car – logbook method (total car expenses × business-use %),Income tax (work-related deduction),2024-25,easy,"[""ITAA 1997 s 28-90"", ""ITAA 1997 s 28-100"", ""ITAA 1997 s 8-1""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions/deductions-for-motor-vehicle-expenses/logbook-method,"At the end of the income year Owen's logbook shows he travelled a total of 13,000 kilometres, of which 9,750 were for business-related purposes, giving a business-use percentage of 9,750 ÷ 13,000 × 100 = 75%. Owen's total car expenses, including depreciation, are $12,500 for the income year.

Using the logbook method, what car expense deduction can Owen claim?

A. $9,375.00
B. $16,666.67
C. $12,500.00
D. $12,499.25","$9,375.00","$16,666.67","$12,500.00","$12,499.25",A,"$9,375.00",9375.0,AUD,"Business-use percentage = 9,750 ÷ 13,000 × 100 = 75% → Deduction = total car expenses × business-use percentage → = 12,500 × 75% = 9,375","{""$9,375.00"": ""Correct answer"", ""$16,666.67"": ""Inverted the ratio (total ÷ business instead of business ÷ total)"", ""$12,500.00"": ""Claimed all car expenses without apportioning by the business-use percentage"", ""$12,499.25"": ""Subtracted the business-use fraction from the expenses instead of multiplying""}","{""formula"": ""total_expenses * (business_km/total_km)"", ""params"": {""total_expenses"": 12500, ""business_km"": 9750, ""total_km"": 13000}, ""expected"": 9375.0}"
Q048,FBT,Aggregate non-exempt amount – car fringe benefit grossed up less capping threshold (PBI),Fringe benefits tax (car fringe benefits),2023-24,hard,"[""FBTAA 1986 s 5B(1E)"", ""FBTAA 1986 s 57A"", ""FBTAA 1986 s 65J""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2024-instructions/worked-examples-not-for-profit-employers-completing-your-fbt-return,"Riverbend Benevolent Society, a public benevolent institution registered for GST, provides Fatima with a car fringe benefit valued at $28,000 using the statutory formula method (a type 1 benefit, as the institution is entitled to GST credits). Fatima's only other benefit is a reimbursement of holiday cottage rent that is not under a salary packaged arrangement, so it is excluded. The capping threshold for a public benevolent institution is $30,000. Fatima's grossed-up type 1 amount is $28,000 x 2.0802 = $58,245.60, which exceeds the $30,000 cap.

What is the aggregate non-exempt amount for Fatima's car fringe benefit?

A. $58,245.60
B. $22,830.40
C. $28,245.60
D. -$2,000.00","$58,245.60","$22,830.40","$28,245.60","-$2,000.00",C,"$28,245.60",28245.6,AUD,"Gross up the car fringe benefit using the type 1 rate: 28,000 x 2.0802 = 58,245.60 → The grossed-up amount exceeds the public benevolent institution capping threshold of 30,000 → Aggregate non-exempt amount = grossed-up amount - cap = 58,245.60 - 30,000 = 28,245.60","{""$58,245.60"": ""Forgot to subtract the $30,000 capping threshold"", ""$22,830.40"": ""Used the type 2 gross-up rate 1.8868 instead of the type 1 rate 2.0802"", ""$28,245.60"": ""Correct answer"", ""-$2,000.00"": ""Subtracted the cap from the ungrossed-up taxable value instead of grossing up first""}","{""formula"": ""car_value * type1_rate - exemption_cap"", ""params"": {""car_value"": 28000, ""type1_rate"": 2.0802, ""exemption_cap"": 30000}, ""expected"": 28245.6}"
Q049,Employment,"Working from home – fixed rate, only hours with contemporaneous records",Income tax (work-related deduction),2024-25,medium,"[""ITAA 1997 s 8-1"", ""PCG 2023/1""]",https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/working-from-home-expenses/fixed-rate-method,"Glenn works from home two days a week (16 hours). From 1 July 2024 to 28 February 2025 he did not keep a record of his work-from-home hours, so he estimated 315 hours, but estimates are not accepted under the fixed rate method. From 1 March 2025 to 30 June 2025 he kept a record in his calendar of his actual start and finish times and calculated 204 hours worked from home. The fixed rate for 2024-25 is 70 cents per work hour.

What working-from-home deduction can Glenn claim for 2024-25 using the fixed rate method?

A. $220
B. $363
C. $137
D. $143",$220,$363,$137,$143,D,$143,143.0,AUD,Only the 204 hours from 1 March to 30 June 2025 have a contemporaneous record and are claimable; the 315 estimated hours are not accepted → Deduction = 204 × $0.70 = $142.80 → Cents are disregarded: deduction = $143,"{""$220"": ""Used only the estimated-hours period instead of the recorded hours"", ""$363"": ""Included the 315 estimated hours that have no contemporaneous record"", ""$137"": ""Used the prior-year 67 cents rate instead of the 2024-25 rate of 70 cents"", ""$143"": ""Correct answer""}","{""formula"": ""round(eligible_hours * rate)"", ""params"": {""eligible_hours"": 204, ""estimated_hours"": 315, ""rate"": 0.7}, ""expected"": 143.0}"
Q050,GST,Margin scheme – GST = margin / 11 using an approved valuation (going concern),GST,2020-21,medium,"[""GST Act s 75-10"", ""GST Act s 75-11""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/property/gst-and-the-margin-scheme/calculating-the-gst-payable,"In September 2018 Bruno sold his going concern, which included property, to Sofia. Bruno had originally bought the property using the margin scheme in August 2014 for $360,000, and a 2014 state government rates valuation stated its value was $385,000 (given to Sofia). Bruno was registered for GST when Sofia bought it. In 2020 Sofia sells the property to a buyer using the margin scheme for $1,045,000, using the 2014 approved valuation of $385,000 to work out the margin.

How much GST must Sofia pay on the sale under the margin scheme?

A. $60,000.00
B. $62,272.73
C. $95,000.00
D. $66,000.00","$60,000.00","$62,272.73","$95,000.00","$66,000.00",A,"$60,000.00",60000.0,AUD,"Margin = sale price - approved valuation on the date Bruno purchased = 1,045,000 - 385,000 = 660,000 → Under the margin scheme, GST = one eleventh of the margin → GST = 660,000 / 11 = 60,000","{""$60,000.00"": ""Correct answer"", ""$62,272.73"": ""Used the $360,000 actual purchase price instead of the $385,000 approved valuation for the margin"", ""$95,000.00"": ""Applied 1/11 to the full sale price instead of the margin"", ""$66,000.00"": ""Took 10% of the GST-inclusive margin instead of 1/11""}","{""formula"": ""(sale_price - approved_valuation) / 11"", ""params"": {""sale_price"": 1045000, ""approved_valuation"": 385000, ""actual_purchase_price"": 360000}, ""expected"": 60000.0}"
Q051,FBT,Reportable fringe benefits amount – Type 2 gross-up (1.8868),Fringe benefits tax,2024-25,medium,"[""FBTAA 1986 s 135P"", ""ITAA 1997 s 6-1""]",https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/reportable-fringe-benefits-for-employees/consequences-of-having-a-reportable-fringe-benefits-amount,"Soren Whitlock's employer provides him with a car fringe benefit with a taxable value of $4,200 and a housing fringe benefit with a taxable value of $1,300 for the 2024-25 income year. Both fringe benefits are reportable, and the total taxable value exceeds the $2,000 reporting threshold. Reportable fringe benefits are grossed up using the lower (Type 2) gross-up rate of 1.8868.

What is Soren's reportable fringe benefits amount (RFBA)?

A. $5,500.00
B. $10,377.40
C. $4,877.38
D. $11,441.10","$5,500.00","$10,377.40","$4,877.38","$11,441.10",B,"$10,377.40",10377.4,AUD,"Total taxable value of the reportable fringe benefits = 4,200 + 1,300 = 5,500 → Reportable fringe benefits are always grossed up at the Type 2 (lower) gross-up rate of 1.8868, regardless of whether the benefits are Type 1 or Type 2 → RFBA = 5,500 x 1.8868 = 10,377.40, reported as 10,377","{""$5,500.00"": ""Reported the total taxable value without grossing it up"", ""$10,377.40"": ""Correct answer"", ""$4,877.38"": ""Applied the 47% FBT rate to the grossed-up amount instead of reporting the RFBA"", ""$11,441.10"": ""Used the Type 1 (higher) gross-up rate of 2.0802 instead of the Type 2 rate""}","{""formula"": ""(car_tv + housing_tv) * type2_gross_up"", ""params"": {""car_tv"": 4200, ""housing_tv"": 1300, ""type2_gross_up"": 1.8868}, ""expected"": 10377.4}"
Q052,Individual income tax,Income tax payable for a resident from the marginal rates (incl. Medicare levy),Income tax (individual),2023-24,easy,"[""ITAA 1997 s 4-10"", ""Income Tax Rates Act 1986 Sch 7"", ""Medicare Levy Act 1986 s 6""]",https://www.ato.gov.au/forms-and-instructions/foreign-income-tax-offset-rules-guide-2024/calculate-your-fito-or-offset-limit,"Marcus is an Australian resident for the year ended 30 June 2024 with a taxable income of $92,000. The ATO works out the income tax payable on his taxable income (including the 2% Medicare levy) as the first step of an offset-limit calculation. For 2023-24 the resident rates are: nil to $18,200; 19c per $1 from $18,201 to $45,000; $5,092 plus 32.5c per $1 from $45,001 to $120,000; plus a 2% Medicare levy on taxable income.

What is the income tax payable (including the 2% Medicare levy) on Marcus's taxable income of $92,000 for 2023-24?

A. $20,367.00
B. $22,207.00
C. $20,367.02
D. $31,740.00","$20,367.00","$22,207.00","$20,367.02","$31,740.00",B,"$22,207.00",22207.0,AUD,"Kept taxable income within the 2023-24 $45,001-$120,000 bracket ($5,092 plus 32.5c for each $1 over $45,000) → Tax on income = 5,092 + (92,000 - 45,000) x 0.325 = 5,092 + 15,275 = 20,367 → Medicare levy = 92,000 x 0.02 = 1,840 → Income tax payable incl Medicare levy = 20,367 + 1,840 = 22,207","{""$20,367.00"": ""Forgot to add the 2% Medicare levy"", ""$22,207.00"": ""Correct answer"", ""$20,367.02"": ""Added a flat 0.02 instead of 2% of taxable income for the Medicare levy"", ""$31,740.00"": ""Applied the 32.5% marginal rate to the whole income instead of only the amount over $45,000 (and dropped the base)""}","{""formula"": ""base + (taxable_income - threshold) * marginal_rate + taxable_income * medicare_rate"", ""params"": {""taxable_income"": 92000, ""base"": 5092, ""threshold"": 45000, ""marginal_rate"": 0.325, ""medicare_rate"": 0.02}, ""expected"": 22207.0}"
Q053,Rental property,Apportioning loan interest where the loan is partly private (mixed-purpose loan),Income tax (rental),2024-25,medium,"[""ITAA 1997 s 8-1"", ""TR 2000/2""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses,"Hugo and Delphine take out a single loan of $264,000, of which $220,000 is used to buy a rental property (as joint tenants) and $44,000 is used to buy a car solely for private use. The interest rate is 6.10% per annum and the property is rented from 1 July, so a whole year of interest applies. The total interest for year 1 is $264,000 x 6.10% = $16,104. Only the portion relating to the rental property loan is deductible.

What amount of interest can Hugo and Delphine claim as a rental deduction for year 1 (combined)?

A. $13,420
B. $16,104
C. $6,710
D. $2,684","$13,420","$16,104","$6,710","$2,684",A,"$13,420",13420.0,AUD,"Total interest for year 1 = 264,000 x 6.10% = 16,104 → Deductible portion = total interest x (rental property loan / total borrowings) → = 16,104 x (220,000 / 264,000) = 13,420","{""$13,420"": ""Correct answer"", ""$16,104"": ""Claimed interest on the whole $209,000 loan, ignoring the private car portion"", ""$6,710"": ""Halved the deductible interest (confused the total deduction with one owner's 50% share)"", ""$2,684"": ""Apportioned using the private ($39,000) portion instead of the rental ($170,000) portion""}","{""formula"": ""total_loan * interest_rate * (rental_loan / total_loan)"", ""params"": {""total_loan"": 264000, ""rental_loan"": 220000, ""interest_rate"": 0.061}, ""expected"": 13420.0}"
Q054,FBT,Type 1 aggregate amount – car plus GST-creditable meal expense (taxable employer),Fringe benefits tax (car fringe benefits),2025-26,medium,"[""FBTAA 1986 s 5B"", ""FBTAA 1986 s 136(1)""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2026-instructions/fbt-return-2026-calculation-details-for-taxable-employers,"Stonefield Engineering Pty Ltd, a taxable employer, provides for the year ending 31 March 2026: a car for private use by its employee Aria valued using the statutory formula method with a taxable value of $13,500 (a GST taxable supply with an entitlement to a GST credit), and reimbursement of restaurant meals (elected to be classified as meal entertainment fringe benefits) with a taxable value of $1,500 (also a GST taxable supply with an entitlement to a GST credit). Both are type 1 benefits. The type 1 gross-up rate is 2.0802.

What is the type 1 aggregate amount for the FBT year ending 31 March 2026?

A. $15,000.00
B. $28,082.70
C. $28,302.00
D. $31,203.00","$15,000.00","$28,082.70","$28,302.00","$31,203.00",D,"$31,203.00",31203.0,AUD,"Total taxable value of type 1 fringe benefits = 13,500 (car) + 1,500 (meal expense) = 15,000 → Multiply by the higher (type 1) gross-up rate of 2.0802 → 15,000 x 2.0802 = 31,203.00","{""$15,000.00"": ""Forgot to apply the gross-up rate"", ""$28,082.70"": ""Omitted the $1,500 GST-creditable meal expense fringe benefit"", ""$28,302.00"": ""Used the type 2 gross-up rate 1.8868 instead of the type 1 rate 2.0802"", ""$31,203.00"": ""Correct answer""}","{""formula"": ""(car_value + meal_expense) * type1_rate"", ""params"": {""car_value"": 13500, ""meal_expense"": 1500, ""type1_rate"": 2.0802, ""type2_rate"": 1.8868}, ""expected"": 31203.0}"
Q055,Division 7A & Company Tax,Division 7A minimum yearly repayment – first year (amortisation formula),Income tax (Division 7A deemed dividend),2014-15,hard,"[""ITAA 1936 s 109E"", ""ITAA 1936 s 109N""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/private-company-benefits-division-7a-dividends/in-detail/division-7a-loans,"During the 2014 income year Marrowdale Holdings Pty Ltd, a private company, made unsecured complying loans of $70,000 and $40,000 to a shareholder, each with a 7-year term. Before the lodgment day, $28,000 of principal was repaid, so the amount of the amalgamated loan not repaid by the end of the 2014 income year is $82,000. The benchmark interest rate for the income year ended 30 June 2015 is 5.95% and the remaining term is 7 years. The minimum yearly repayment (MYR) is worked out using the formula MYR = (P x I) / (1 - (1 / (1 + I)) ^ T).

What is the minimum yearly repayment for the income year ended 30 June 2015?

A. $11,714.29
B. $16,649.55
C. $14,662.98
D. $4,879.00","$11,714.29","$16,649.55","$14,662.98","$4,879.00",C,"$14,662.98",14662.98,AUD,"Amount of loan not repaid by end of previous (2014) income year P = 82,000 → 2015 benchmark interest rate I = 5.95% (0.0595); remaining term T = 7 years → Step 1: P x I = 82,000 x 0.0595 = 4,879.00 → Step 2: 1 / (1 + I) = 1 / 1.0595 = 0.943841435 → Step 3: 0.943841435 ^ 7 = 0.667257208 → Step 4: 1 - 0.667257208 = 0.332742732 → Step 5: 4,879.00 / 0.332742732 = 14,663 (rounded to nearest dollar)","{""$11,714.29"": ""Used straight-line principal repayment (loan / term) and ignored interest entirely"", ""$16,649.55"": ""Used remaining term of 6 years instead of 7"", ""$14,662.98"": ""Correct answer"", ""$4,879.00"": ""Charged only one year's benchmark interest instead of amortising the loan over the remaining term""}","{""formula"": ""(P * I) / (1 - (1 / (1 + I)) ** T)"", ""params"": {""P"": 82000, ""I"": 0.0595, ""T"": 7}, ""expected"": 14662.98}"
Q056,FBT,Type 1 aggregate amount – multiple car fringe benefits grossed up (rebatable employer item 14A),Fringe benefits tax (car fringe benefits),2023-24,medium,"[""FBTAA 1986 s 5B"", ""FBTAA 1986 s 65J""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2024-instructions/worked-examples-not-for-profit-employers-completing-your-fbt-return,"Harbourlight Community Care, a rebatable not-for-profit employer, provides cars for private use to two employees, Tobias and Ingrid, for the year ending 31 March 2024. The car fringe benefits are type 1 benefits (GST taxable supplies with an entitlement to a GST credit). Tobias's car fringe benefit, calculated using the statutory formula method, is $18,000, and Ingrid's is $16,500, giving total car fringe benefits of $34,500. The type 1 gross-up rate is 2.0802.

What is the type 1 aggregate amount for the car fringe benefits (item 14A of the FBT return)?

A. $33,730.44
B. $71,766.90
C. $34,500.00
D. $65,094.60","$33,730.44","$71,766.90","$34,500.00","$65,094.60",B,"$71,766.90",71766.9,AUD,"Total car fringe benefits = 18,000 (Tobias) + 16,500 (Ingrid) = 34,500 → Car fringe benefits are type 1 benefits (GST credit available), so use the higher gross-up rate 2.0802 → 34,500 x 2.0802 = 71,766.90","{""$33,730.44"": ""Applied the 47% FBT rate to the aggregate amount instead of reporting the grossed-up aggregate"", ""$71,766.90"": ""Correct answer"", ""$34,500.00"": ""Forgot to apply the gross-up rate"", ""$65,094.60"": ""Used the type 2 gross-up rate 1.8868 instead of the type 1 rate 2.0802""}","{""formula"": ""(mark_car + sam_car) * type1_rate"", ""params"": {""mark_car"": 18000, ""sam_car"": 16500, ""type1_rate"": 2.0802, ""type2_rate"": 1.8868}, ""expected"": 71766.9}"
Q057,Depreciation,Prime cost method – first-year part-year apportionment by days,"Income tax (capital allowances, Div 40)",2021-22,medium,"[""ITAA 1997 s 40-25"", ""ITAA 1997 s 40-75""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules-capital-allowances/prime-cost-straight-line-and-diminishing-value-methods,"Mei purchased a commercial oven for $3,500 and originally used it privately. She started a catering business and began using the oven wholly for that business from 1 April 2022. She uses the prime cost method and adopts the Commissioner's effective life for the oven of 8 years. There are 91 days between 1 April 2022 and 30 June 2022 (inclusive) on which she used the oven exclusively for her business in the 2021-22 income year; she holds it for 92 days in total once installation day is counted.

What deduction can Mei claim for the decline in value of the oven in the 2021-22 income year?

A. $110.27
B. $437.50
C. $220.55
D. $882.19",$110.27,$437.50,$220.55,$882.19,A,$110.27,110.27,AUD,"Prime cost formula: cost x (days held / 365) x (100% / effective life) → Rate = 100% / 8 years = 12.5% → Decline in value = 3,500 x (92 / 365) x 12.5% = 110.27, rounded to 110","{""$110.27"": ""Correct answer"", ""$437.50"": ""Claimed a full year's deduction, ignoring the 92-day part-year apportionment"", ""$220.55"": ""Applied the diminishing value 200% rate instead of the prime cost 100% rate"", ""$882.19"": ""Apportioned by days but forgot to apply the 1/effective-life rate""}","{""formula"": ""cost * (days_held / days_year) * (1 / effective_life)"", ""params"": {""cost"": 3500, ""days_held"": 92, ""days_year"": 365, ""effective_life"": 8, ""dv_factor"": 2.0}, ""expected"": 110.27}"
Q058,FBT,"Minor benefits – notional value exactly $300 (boundary, not under $300)",Fringe benefits tax,2024-25,hard,"[""FBTAA 1986 s 58P"", ""FBTAA 1986 s 136(1)""]",https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/exemptions-concessions-and-other-ways-to-reduce-fbt/minor-benefits-exemption,"Coastline Pty Ltd gives an employee a gift with a notional taxable value of exactly $300. The employer is registered for GST and is entitled to a GST credit on the gift (a Type 1 benefit). The minor benefits exemption requires the notional taxable value to be LESS than $300.

What is the FBT payable on this benefit (the notional value is exactly $300)?

A. $141.00
B. $266.04
C. $0.00
D. $293.31",$141.00,$266.04,$0.00,$293.31,D,$293.31,293.31,AUD,"The minor benefits exemption applies only where the notional taxable value is LESS than $300 → Here the value is exactly $300, so the exemption does NOT apply and the benefit is taxable → It is a Type 1 benefit (GST credit available): grossed-up value = $300 x 2.0802 = $624.06 → FBT payable = $624.06 x 47% = $293.31","{""$141.00"": ""Applied 47% FBT to the taxable value without grossing it up"", ""$266.04"": ""Used the Type 2 gross-up rate (1.8868) even though a GST credit was available"", ""$0.00"": ""Assumed $300 qualifies for the minor benefits exemption, but the test is LESS than $300, so the exemption does not apply"", ""$293.31"": ""Correct answer""}","{""formula"": ""round(notional_value * gross_up_t1 * fbt_rate, 2)"", ""params"": {""notional_value"": 300, ""gross_up_t1"": 2.0802, ""gross_up_t2"": 1.8868, ""fbt_rate"": 0.47}, ""expected"": 293.31}"
Q059,Employment,Genuine redundancy – ETP excess over the tax-free limit (base + service × years),Income tax (employment termination),2023-24,medium,"[""ITAA 1997 s 83-170"", ""ITAA 1997 s 83-175"", ""ITAA 1997 s 82-10""]",https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/when-a-worker-leaves-your-business/taxation-of-termination-payments/redundancy-and-early-retirement,"Marcus is made genuinely redundant in 2023-24 after 8 completed years of service. The genuine redundancy part of his payment is $95,000. On termination he is also paid out $7,000 of unused annual leave, which is taxed separately and is NOT part of the genuine redundancy payment. Marcus is 61 years old. For 2023-24 the genuine redundancy tax-free limit is the base amount of $11,985 plus the service amount of $5,994 for each completed year of service. The amount of the genuine redundancy payment above the tax-free limit is part of his employment termination payment (ETP).

How much of Marcus's $95,000 genuine redundancy payment is in excess of the tax-free limit and therefore part of his ETP?

A. $77,021
B. $59,937
C. $42,063
D. $35,063","$77,021","$59,937","$42,063","$35,063",D,"$35,063",35063.0,AUD,"Tax-free limit = base + (service × years) = 11,985 + (5,994 × 8) = 11,985 + 47,952 = 59,937 → Marcus's age (61) and the $7,000 unused annual leave are not used in this calculation: the tax-free limit depends only on completed years of service, and unused annual leave is taxed separately (not part of the genuine redundancy payment) → ETP excess = genuine redundancy part − tax-free limit = 95,000 − 59,937 = 35,063","{""$77,021"": ""Used only one year's service amount instead of multiplying by the 8 completed years"", ""$59,937"": ""Reported the tax-free limit itself instead of the ETP amount in excess of it"", ""$42,063"": ""Wrongly added the $7,000 unused annual leave into the genuine redundancy part (annual leave is taxed separately, not part of it)"", ""$35,063"": ""Correct answer""}","{""formula"": ""genuine_part - (base + service*years)"", ""params"": {""genuine_part"": 95000, ""base"": 11985, ""service"": 5994, ""years"": 8, ""age"": 61, ""annual_leave"": 7000}, ""expected"": 35063.0}"
Q060,Depreciation,Balancing adjustment on disposal – assessable (termination value > adjustable value),"Income tax (capital allowances, Div 40)",2019-20,easy,"[""ITAA 1997 s 40-285"", ""ITAA 1997 s 40-300""]",https://www.ato.gov.au/forms-and-instructions/depreciating-assets-guide-2020/what-happens-if-you-no-longer-hold-or-use-a-depreciating-asset,"Oksana purchased a workbench that she held for two years and used wholly for a taxable purpose. She then sold the workbench for $2,100. Its adjustable value at the time of sale was $1,850. A balancing adjustment event occurs on disposal: you compare the termination value (sale proceeds) with the adjustable value.

What is Oksana's assessable balancing adjustment amount on the sale of the workbench (ignoring GST)?

A. -$250
B. -$300
C. $550
D. $250",-$250,-$300,$550,$250,D,$250,250.0,AUD,"Termination value (sale proceeds) = 2,100 → Adjustable value at time of sale = 1,850 → Termination value exceeds adjustable value, so the excess is assessable: 2,100 - 1,850 = 250","{""-$250"": ""Subtracted the wrong way round (treated it as a deductible amount instead of assessable)"", ""-$300"": ""Compared the termination value with the original cost instead of the adjustable value"", ""$550"": ""Used the original cost instead of the termination value"", ""$250"": ""Correct answer""}","{""formula"": ""termination_value - adjustable_value"", ""params"": {""termination_value"": 2100, ""adjustable_value"": 1850, ""cost"": 2400}, ""expected"": 250.0}"
Q061,Employment,PAYG instalments – instalment rate method (instalment income × rate),Income tax (PAYG instalments),2024-25,easy,"[""TAA 1953 Sch 1 s 45-110"", ""TAA 1953 Sch 1 s 45-15""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/payg-instalments/calculate-your-payg-instalments,"Harbour Co pays PAYG instalments using the instalment rate (option 2). Its instalment income for the quarter (T1) is $148,000. The instalment rate provided by the ATO (T2) is 11%. The instalment amount is calculated as T1 × T2.

What is Harbour Co's PAYG instalment amount for the quarter?

A. $16,280.00
B. $1,345,454.55
C. $148,000.00
D. $162.80","$16,280.00","$1,345,454.55","$148,000.00",$162.80,A,"$16,280.00",16280.0,AUD,"PAYG instalment (option 2) = instalment income (T1) × instalment rate (T2) → = $148,000 × 11% → = $16,280","{""$16,280.00"": ""Correct answer"", ""$1,345,454.55"": ""Divided by the instalment rate instead of multiplying by it"", ""$148,000.00"": ""Reported the instalment income as the amount payable without applying the instalment rate"", ""$162.80"": ""Divided the already-decimal rate by 100 again, treating 11% as 0.11%""}","{""formula"": ""instalment_income * rate"", ""params"": {""instalment_income"": 148000, ""rate"": 0.11}, ""expected"": 16280.0}"
Q062,Superannuation,"Division 293 – income exactly at the $250,000 threshold",Income tax (Division 293),2024-25,medium,"[""ITAA 1997 s 293-15"", ""ITAA 1997 s 293-20"", ""ITAA 1997 Div 293""]",https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/division-293-tax,"Helena's Division 293 income (her income for surcharge purposes plus her low-tax/concessional contributions) is exactly $250,000 for 2024-25, made up of $225,000 income plus $25,000 of concessional contributions. Division 293 tax is 15% and is payable only on the amount OVER the $250,000 threshold (taking the lesser of that excess and the contributions). At exactly $250,000 there is no excess.

How much Division 293 tax does Helena pay for 2024-25?

A. $0.00
B. $0.15
C. $37,500.00
D. $3,750.00",$0.00,$0.15,"$37,500.00","$3,750.00",A,$0.00,0.0,AUD,"Division 293 tax applies to the excess OVER $250,000, not at the threshold. → Excess = 250,000 - 250,000 = 0. → Taxable contributions for Division 293 = lesser of the excess (0) and contributions ($25,000) = 0. → Division 293 tax = 0 x 0.15 = 0.","{""$0.00"": ""Correct answer"", ""$0.15"": ""Treated income at the threshold as $1 over and charged 15c"", ""$37,500.00"": ""Applied the 15% rate to the entire $250,000 of income"", ""$3,750.00"": ""Charged 15% on all $25,000 of concessional contributions, ignoring that nothing is over the threshold""}","{""formula"": ""max(0, min(div293_income - threshold, concessional)) * div293_rate"", ""params"": {""div293_income"": 250000, ""threshold"": 250000, ""div293_rate"": 0.15, ""concessional"": 25000}, ""expected"": 0.0}"
Q063,Division 7A & Company Tax,Under-franking debit to the franking account,Income tax (imputation),2017-18,medium,"[""ITAA 1997 s 203-50"", ""ITAA 1997 s 205-30""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/in-detail/how-to-calculate-over-franking-tax-and-under-franking-debit,"Re Pty Ltd has a 30% corporate tax rate for imputation purposes (gross-up rate 2.33333) and a benchmark franking percentage of 50%. On 18 December 2017 it makes a frankable distribution of $12,500 but chooses to allocate no franking credits to it, so it under-franks. The under-franking debit = frankable distribution x franking % differential / gross-up rate, where the franking % differential is 50% (benchmark 50% less actual 0%).

What is the under-franking debit Re Pty Ltd must record in its franking account?

A. $2,678.58
B. $5,357.15
C. $6,250.00
D. $2,370.66","$2,678.58","$5,357.15","$6,250.00","$2,370.66",A,"$2,678.58",2678.58,AUD,"Frankable distribution = 12,500; benchmark franking percentage = 50%; actual franking = 0% → Franking percentage differential = 50% - 0% = 50% → Gross-up rate (30% rate) = (100% - 30%) / 30% = 2.33333 → Under-franking debit = 12,500 x 50% / 2.33333 = 2,678.58","{""$2,678.58"": ""Correct answer"", ""$5,357.15"": ""Calculated the maximum franking credit on the whole distribution instead of the 50% under-franked portion"", ""$6,250.00"": ""Multiplied the distribution by the differential but forgot to divide by the gross-up rate"", ""$2,370.66"": ""Used the 27.5% base-rate-entity gross-up rate instead of Re Pty Ltd's 30% rate (2.33333)""}","{""formula"": ""distribution * franking_differential / gross_up_rate"", ""params"": {""distribution"": 12500, ""franking_differential"": 0.5, ""gross_up_rate"": 2.33333}, ""expected"": 2678.58}"
Q064,Study and training loans,"HELP/student loan – 2024-25 flat rate on TOTAL income, at a band boundary",Compulsory study and training loan repayment,2024-25,hard,"[""Higher Education Support Act 2003 s 154-1"", ""Higher Education Support Act 2003 s 154-20""]",https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds,"Sam has a HELP debt and repayment income of exactly $62,851 for 2024-25 - the first dollar of the 2.0% band ($62,851 - $66,620). For 2024-25 and earlier years the compulsory repayment is a flat percentage of the WHOLE repayment income (not a marginal calculation): once repayment income reaches a band, the band's rate applies to the entire repayment income.

What is Sam's compulsory HELP repayment for 2024-25?

A. $168.32
B. $628.51
C. $0.00
D. $1,257.02",$168.32,$628.51,$0.00,"$1,257.02",D,"$1,257.02",1257.02,AUD,"Repayment income $62,851 is the first dollar of the 2024-25 2.0% band ($62,851 - $66,620). → For 2024-25 the rate applies to the WHOLE repayment income, not the amount over a threshold. → Repayment = 62,851 x 0.02 = 1,257.02.","{""$168.32"": ""Charged 2% only on the amount over the nil threshold (marginal thinking), which doesn't apply for 2024-25"", ""$628.51"": ""Used the 1.0% rate from the band below instead of the 2.0% band the income falls in"", ""$0.00"": ""Charged 2% only on the excess over the band floor, giving $0"", ""$1,257.02"": ""Correct answer""}","{""formula"": ""repayment_income * rate"", ""params"": {""repayment_income"": 62851, ""rate"": 0.02, ""lower_rate"": 0.01, ""nil_threshold"": 54435}, ""expected"": 1257.02}"
Q065,Individual income tax,"Taxable income from salary plus interest less a deduction, then income tax plus Medicare levy",Income tax (individual),2023-24,hard,"[""ITAA 1997 s 4-10"", ""ITAA 1997 s 6-5"", ""ITAA 1997 s 8-1"", ""Income Tax Rates Act 1986 Sch 7"", ""Medicare Levy Act 1986 s 6""]",https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents,"Tom is an Australian resident for the year ended 30 June 2024. He earns a salary of $105,000 and $1,200 of bank interest, and has $2,300 of deductible work-related expenses. During the year he also received a $5,000 inheritance from his late aunt; an inheritance is a capital receipt and is not assessable income. For 2023-24 the resident rates are: nil up to $18,200; 19c per $1 from $18,201 to $45,000; $5,092 plus 32.5c per $1 from $45,001 to $120,000; plus a 2% Medicare levy on taxable income.

What is Tom's income tax payable (including the 2% Medicare levy) for 2023-24?

A. $24,234.50
B. $27,106.00
C. $26,312.50
D. $28,037.50","$24,234.50","$27,106.00","$26,312.50","$28,037.50",C,"$26,312.50",26312.5,AUD,"The $5,000 inheritance is a non-assessable capital receipt and is excluded from income → Taxable income = salary 105,000 + bank interest 1,200 − deduction 2,300 = 103,900 → Income tax (2023-24 bracket $45,001-$120,000) = 5,092 + (103,900 − 45,000) × 0.325 = 5,092 + 19,142.50 = 24,234.50 → Medicare levy = 103,900 × 0.02 = 2,078 → Income tax payable incl Medicare levy = 24,234.50 + 2,078 = 26,312.50","{""$24,234.50"": ""Forgot to add the 2% Medicare levy"", ""$27,106.00"": ""Forgot to subtract the $2,300 of deductible work-related expenses"", ""$26,312.50"": ""Correct answer"", ""$28,037.50"": ""Wrongly included the $5,000 inheritance (a non-assessable capital receipt) in taxable income""}","{""formula"": ""base + ((salary + bank_interest - deduction) - threshold) * marginal_rate + (salary + bank_interest - deduction) * medicare_rate"", ""params"": {""salary"": 105000, ""bank_interest"": 1200, ""deduction"": 2300, ""inheritance"": 5000, ""base"": 5092, ""threshold"": 45000, ""marginal_rate"": 0.325, ""medicare_rate"": 0.02}, ""expected"": 26312.5}"
Q066,Individual income tax,Tax-free threshold effect on base income tax,Income tax (individual),2021-22,easy,"[""ITAA 1997 s 4-10"", ""Income Tax Rates Act 1986 Sch 7""]",https://www.ato.gov.au/forms-and-instructions/low-and-middle-income-earner-tax-offsets,"Damien has a taxable income of $40,000 for the 2021-22 income year, and the ATO states his basic tax payable on this amount. For 2021-22 the first $18,200 is tax-free (the tax-free threshold) and income from $18,201 to $45,000 is taxed at 19c for each $1 over $18,200. This figure is the basic income tax before any offsets and excludes the Medicare levy.

What is Damien's basic income tax (before offsets and before the Medicare levy) on his taxable income of $40,000 for 2021-22?

A. $7,085
B. $4,578
C. $7,600
D. $4,142","$7,085","$4,578","$7,600","$4,142",D,"$4,142",4142.0,AUD,"Kept taxable income within the 2021-22 $18,201-$45,000 bracket (19c in the dollar over the tax-free threshold) → The first $18,200 is tax-free (tax-free threshold); only income over $18,200 is taxed at 19c → Tax = (40,000 - 18,200) x 0.19 = 21,800 x 0.19 = 4,142","{""$7,085"": ""Applied the 32.5% rate (the next bracket up) instead of 19%"", ""$4,578"": ""Added a Medicare levy even though the stated figure is income tax only"", ""$7,600"": ""Ignored the tax-free threshold and taxed the whole $40,000 at 19%"", ""$4,142"": ""Correct answer""}","{""formula"": ""(taxable_income - tax_free_threshold) * marginal_rate"", ""params"": {""taxable_income"": 40000, ""tax_free_threshold"": 18200, ""marginal_rate"": 0.19}, ""expected"": 4142.0}"
Q067,Individual income tax,Part-year resident pro-rated tax-free threshold (leaving Australia),Income tax (individual),2024-25,medium,"[""Income Tax Rates Act 1986 s 20"", ""Income Tax Rates Act 1986 s 16""]",https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/living-overseas-and-becoming-a-foreign-tax-resident,"Carla left Australia permanently and became a foreign resident on 14 October 2024. She is entitled to 4 months (July to October, counting the month she left) of the tax-free threshold. A part-year resident's tax-free threshold is a flat $13,464 plus $4,736 divided by 12 and multiplied by the number of resident months.

What is Carla's pro-rated tax-free threshold for 2024-25?

A. $6,066.67
B. $18,200.00
C. $1,578.67
D. $15,042.67","$6,066.67","$18,200.00","$1,578.67","$15,042.67",D,"$15,042.67",15042.67,AUD,"Kept resident_months within the valid 1-12 month range (4 of 12 months) → Flat component = $13,464 → Apportioned component = ($4,736 / 12) x 4 = 394.67 x 4 = 1,578.67 → Tax-free threshold = 13,464 + 1,578.67 = 15,042.67","{""$6,066.67"": ""Apportioned the whole $18,200 threshold instead of only the $4,736 component"", ""$18,200.00"": ""Gave the full $4,736 additional amount instead of apportioning it for 4 months"", ""$1,578.67"": ""Pro-rated only the $4,736 component and dropped the flat $13,464 entirely"", ""$15,042.67"": ""Correct answer""}","{""formula"": ""flat_amount + (apportioned_amount / total_months) * resident_months"", ""params"": {""flat_amount"": 13464, ""apportioned_amount"": 4736, ""resident_months"": 4, ""total_months"": 12}, ""expected"": 15042.67}"
Q068,Superannuation,Contributions tax – net deductible personal contribution after 15% tax,Superannuation (contributions tax),2019-20,medium,"[""ITAA 1997 s 290-150"", ""ITAA 1997 s 295-160"", ""ITAA 1997 s 295-190""]",https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/personal-super-contributions,"During 2019-20 Tobias is employed as a barber and earns $42,000. He contributes $7,500 to his super fund as a personal contribution and decides to claim an income tax deduction for $6,000 of it (giving his fund a valid notice of intent). A deductible personal contribution is a concessional contribution, on which the super fund pays 15% contributions tax.

How much of Tobias's $6,000 deductible personal contribution is credited to his super fund account after contributions tax?

A. $5,100
B. $6,000
C. $6,375
D. $900","$5,100","$6,000","$6,375",$900,A,"$5,100",5100.0,AUD,"Deductible (concessional) personal contribution = $6,000 → Super fund pays 15% contributions tax: 6,000 x 0.15 = $900 → Amount credited to the account = 6,000 - 900 = $5,100 (i.e. 6,000 x 0.85)","{""$5,100"": ""Correct answer"", ""$6,000"": ""Forgot the 15% contributions tax the fund pays on concessional contributions"", ""$6,375"": ""Taxed the whole $7,500 contribution rather than only the $6,000 claimed as a deduction"", ""$900"": ""Reported the $900 tax instead of the net amount credited""}","{""formula"": ""contribution * (1 - contrib_tax_rate)"", ""params"": {""contribution"": 6000, ""contrib_tax_rate"": 0.15, ""full_contribution"": 7500}, ""expected"": 5100.0}"
Q069,Depreciation,Balancing adjustment on disposal – reduced for non-taxable (private) use,"Income tax (capital allowances, Div 40)",2019-20,medium,"[""ITAA 1997 s 40-285"", ""ITAA 1997 s 40-290""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules-capital-allowances/disposing-or-ceasing-to-use-a-depreciating-asset,"Greta receives $21,000 for a van she used in her business. The van has been used 30% of the time for private purposes (so 70% for a taxable purpose). At the time of sale the van's adjustable value is $30,000. Because the termination value ($21,000) is less than the adjustable value ($30,000) the raw balancing adjustment is a deduction, but it must be reduced to reflect only the 70% taxable use.

What deduction can Greta claim for the reduced balancing adjustment amount on the van (ignoring GST)?

A. $2,700
B. $6,300
C. -$6,300
D. $9,000","$2,700","$6,300","-$6,300","$9,000",B,"$6,300",6300.0,AUD,"Raw balancing adjustment = adjustable value - termination value = 30,000 - 21,000 = 9,000 (a deduction) → Reduce to the 70% taxable-use proportion: 9,000 x 70% = 6,300 → Greta can claim a $6,300 deduction","{""$2,700"": ""Applied the 30% private-use percentage instead of the 70% taxable-use percentage"", ""$6,300"": ""Correct answer"", ""-$6,300"": ""Reversed the subtraction, turning a deduction into an assessable amount"", ""$9,000"": ""Forgot to reduce the balancing adjustment for the 30% private use""}","{""formula"": ""(adjustable_value - termination_value) * taxable_pct"", ""params"": {""adjustable_value"": 30000, ""termination_value"": 21000, ""taxable_pct"": 0.7, ""private_pct"": 0.3}, ""expected"": 6300.0}"
Q070,GST,GST credit on equipment – 1/11 of the GST-inclusive cost,GST,2025-26,easy,"[""GST Act s 11-20"", ""GST Act s 11-25"", ""GST Act s 29-10""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/claiming-gst-credits/when-you-can-claim-a-gst-credit,"BR Holdings reports GST monthly and accounts for GST on a cash basis. BR Holdings purchases equipment for $9,900 (including GST) and ultimately pays the full amount and holds a valid tax invoice, so it is entitled to the full GST credit on the purchase.

What is the total GST credit BR Holdings can claim on the $9,900 equipment purchase?

A. $900.00
B. $825.00
C. $990.00
D. $81.82",$900.00,$825.00,$990.00,$81.82,A,$900.00,900.0,AUD,"The equipment is a creditable purchase and BR Holdings holds a tax invoice → GST credit = one eleventh of the GST-inclusive purchase price → GST credit = 9,900 / 11 = 900","{""$900.00"": ""Correct answer"", ""$825.00"": ""Divided the price by the wrong divisor (12) instead of 11"", ""$990.00"": ""Took 10% of the GST-inclusive price instead of 1/11"", ""$81.82"": ""Divided by 11 twice""}","{""formula"": ""purchase_price / 11"", ""params"": {""purchase_price"": 9900}, ""expected"": 900.0}"
Q071,Income tests,Rebate income – SAPTO shading-out (each partner of a couple),Income tax – seniors and pensioners tax offset,2024-25,medium,"[""ITAA 1936 s 160AAAA"", ""Income Tax Assessment (1936 Act) Regulation 2015""]",https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/tax-offsets/seniors-and-pensioners-tax-offset,"Walter and Maureen are a married couple living together. Walter receives an age pension; Maureen has not reached age-pension age and is not eligible. Walter's rebate income is $37,800 (Maureen's is nil), and his determined rebate income is below the couple cut-out threshold, so he is eligible. The couple maximum SAPTO is $1,602 with a shading-out threshold of $30,994, and the offset reduces by 12.5c for each $1 of his actual rebate income over $30,994.

What SAPTO amount is Walter entitled to for 2024-25?

A. -$3,123.00
B. $751.25
C. $1,602.00
D. $1,379.25","-$3,123.00",$751.25,"$1,602.00","$1,379.25",B,$751.25,751.25,AUD,"Walter's rebate income $37,800 is above the $30,994 couple shading-out threshold but below the $43,810 couple cut-out, so it stays within the same shade-out segment as the base example → Walter's actual rebate income above the couple shading-out threshold = 37,800 - 30,994 = 6,806 → Reduction = 6,806 x 0.125 = 850.75 → SAPTO = 1,602 - 850.75 = 751.25","{""-$3,123.00"": ""Reduced by 12.5% of total rebate income instead of only the amount over the shading-out threshold"", ""$751.25"": ""Correct answer"", ""$1,602.00"": ""Ignored the shading-out reduction and claimed the full couple maximum $1,602"", ""$1,379.25"": ""Used the single maximum $2,230 instead of the couple rate $1,602""}","{""formula"": ""max_offset - (rebate_income - shade_threshold) * reduction_rate"", ""params"": {""rebate_income"": 37800, ""max_offset"": 1602, ""shade_threshold"": 30994, ""reduction_rate"": 0.125, ""single_max"": 2230}, ""expected"": 751.25}"
Q072,Company tax,Company tax rate – NOT a base rate entity (passive income over 80%),Income tax (company),2024-25,hard,"[""ITRA 1986 s 23"", ""ITAA 1997 s 23AA"", ""ITAA 1997 s 23AB""]",https://www.ato.gov.au/tax-rates-and-codes/company-tax-rate-changes,"Sterling Holdings Pty Ltd has aggregated turnover of $4 million for the 2024-25 income year, which is under the $50 million threshold. Its assessable income is $200,000, of which 90% is base rate entity passive income (rent, interest and unfranked dividends). Its taxable income is also $200,000.

What is Sterling Holdings Pty Ltd's company income tax payable for 2024-25?

A. $60,000
B. $10,000
C. $55,000
D. $50,000","$60,000","$10,000","$55,000","$50,000",A,"$60,000",60000.0,AUD,"Aggregated turnover is under $50m, but the company is a base rate entity only if 80% or less of assessable income is base rate entity passive income → Here 90% of assessable income is passive income, which is more than 80%, so the company is NOT a base rate entity → The full 30% company tax rate applies: $200,000 x 30% = $60,000","{""$60,000"": ""Correct answer"", ""$10,000"": ""Applied only the 5% rate differential instead of the full 30% rate"", ""$55,000"": ""Used the superseded 27.5% base rate entity rate from an earlier income year"", ""$50,000"": ""Applied the 25% base rate entity rate, ignoring that passive income over 80% disqualifies the company""}","{""formula"": ""taxable_income * rate_full"", ""params"": {""taxable_income"": 200000, ""rate_full"": 0.3, ""rate_bre"": 0.25, ""rate_old"": 0.275}, ""expected"": 60000.0}"
Q073,Depreciation,Diminishing value method – first year,"Income tax (capital allowances, Div 40)",2024-25,easy,"[""ITAA 1997 s 40-25"", ""ITAA 1997 s 40-70"", ""ITAA 1997 s 40-72""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules-capital-allowances/prime-cost-straight-line-and-diminishing-value-methods,"A survey instrument cost $50,000 and has an effective life of 4 years. It was first held on the first day of the income year (held all 365 days) and is used wholly for a taxable purpose by Coastline Surveys. The asset was started to be held after 10 May 2006, so the 200% diminishing value rate applies. In the first year the base value equals the cost of $50,000.

What is the decline in value for the first year under the diminishing value method?

A. $18,750
B. $25,000
C. $6,250
D. $12,500","$18,750","$25,000","$6,250","$12,500",B,"$25,000",25000.0,AUD,"Diminishing value formula: base value x (days held / 365) x (200% / effective life) → Rate = 200% / 4 years = 50% → Decline in value = 50,000 x (365 / 365) x 50% = 25,000","{""$18,750"": ""Used the old 150% diminishing value rate (for assets held before 10 May 2006)"", ""$25,000"": ""Correct answer"", ""$6,250"": ""Divided by the effective life twice"", ""$12,500"": ""Used the prime cost 100% rate instead of the diminishing value 200% rate""}","{""formula"": ""base_value * (days_held / days_year) * (dv_factor / effective_life)"", ""params"": {""base_value"": 50000, ""days_held"": 365, ""days_year"": 365, ""effective_life"": 4, ""dv_factor"": 2.0, ""pc_factor"": 1.0}, ""expected"": 25000.0}"
Q074,Employment,ETP – tax on the redundancy amount above the tax-free limit (30% rate + 2% Medicare),Income tax (employment termination),2023-24,hard,"[""ITAA 1997 s 82-10"", ""ITAA 1997 s 83-170"", ""ITAA 1997 s 83-175"", ""Medicare Levy Act 1986 s 6""]",https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/leaving-your-job/how-etp-components-are-taxed,"Bianca is made genuinely redundant in 2023-24 after 9 completed years of service and is below her preservation age. The genuine redundancy part of her payment is $120,000. For 2023-24 the tax-free limit is the base amount $11,985 plus the service amount $5,994 for each completed year of service. The part above the tax-free limit is the taxable component of her ETP; as it is well under the ETP cap ($235,000 for 2023-24), a person below preservation age is taxed on it at 30% plus the 2% Medicare levy (a combined 32%).

How much tax (including the 2% Medicare levy) applies to the part of Bianca's genuine redundancy payment that is above the tax-free limit?

A. $17,302.08
B. $38,400.00
C. $16,220.70
D. $32,646.72","$17,302.08","$38,400.00","$16,220.70","$32,646.72",A,"$17,302.08",17302.08,AUD,"Tax-free limit = base + (service × years) = 11,985 + (5,994 × 9) = 11,985 + 53,946 = 65,931 → Taxable ETP component = genuine redundancy part − tax-free limit = 120,000 − 65,931 = 54,069 → As it is under the ETP cap and Bianca is below preservation age, tax = 30% + 2% Medicare = 32% → Tax = 54,069 × 0.32 = 17,302.08","{""$17,302.08"": ""Correct answer"", ""$38,400.00"": ""Taxed the whole $120,000 redundancy payment at 32%, ignoring the tax-free limit"", ""$16,220.70"": ""Applied only the 30% ETP rate and forgot the 2% Medicare levy"", ""$32,646.72"": ""Used only one year's service amount instead of multiplying by the 9 completed years""}","{""formula"": ""(genuine_part - (base + service*years)) * (etp_rate + medicare_rate)"", ""params"": {""genuine_part"": 120000, ""base"": 11985, ""service"": 5994, ""years"": 9, ""etp_rate"": 0.3, ""medicare_rate"": 0.02}, ""expected"": 17302.08}"
Q075,CGT,CGT discount method – land,Income tax (CGT),2024-25,easy,"[""ITAA 1997 s 104-10"", ""ITAA 1997 s 115-25"", ""ITAA 1997 s 115-100""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/how-to-calculate-your-cgt,"Priya, an Australian resident, buys a vacant block of land. She owns it for 22 months and sells it, making a profit (capital gain before discount) of $24,000. She has no capital losses.

What capital gain will Priya declare in her tax return after applying the CGT discount?

A. $6,000
B. $12,000
C. $48,000
D. $24,000","$6,000","$12,000","$48,000","$24,000",B,"$12,000",12000.0,AUD,"Capital gain before discount = 24,000 → Priya owned the land for at least 12 months as an Australian resident, so she is entitled to the 50% CGT discount → Apply 50% CGT discount: 24,000 x 0.5 = 12,000","{""$6,000"": ""Applied the 50% discount twice (halved the already-discounted gain)"", ""$12,000"": ""Correct answer"", ""$48,000"": ""Divided by 0.5 instead of multiplying, doubling the gain"", ""$24,000"": ""Forgot to apply the 50% CGT discount and declared the full gain""}","{""formula"": ""gain * discount_rate"", ""params"": {""gain"": 24000, ""discount_rate"": 0.5}, ""expected"": 12000.0}"
Q076,Superannuation,Division 293 – tax on the lesser of excess over threshold and contributions,Income tax (Division 293),2024-25,hard,"[""ITAA 1997 s 293-15"", ""ITAA 1997 s 293-20"", ""ITAA 1997 s 293-25""]",https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/division-293-tax,"Raj has taxable income (income for surcharge purposes) of $280,000 for 2024-25 and $25,000 of concessional (low-tax) contributions, giving Division 293 income of $305,000. Division 293 tax is 15%, charged on the LESSER of (a) the amount of Division 293 income over the $250,000 threshold and (b) the low-tax contributions. Here the excess is $55,000 but the contributions are only $25,000, so the lesser amount is $25,000.

How much Division 293 tax does Raj pay for 2024-25?

A. $4,500
B. $3,750
C. $8,250
D. $7,500","$4,500","$3,750","$8,250","$7,500",B,"$3,750",3750.0,AUD,"Division 293 income = 280,000 + 25,000 = 305,000. → Excess over threshold = 305,000 - 250,000 = 55,000. → Tax base = lesser of the excess (55,000) and the contributions (25,000) = 25,000. → Division 293 tax = 25,000 x 0.15 = 3,750.","{""$4,500"": ""Computed the excess from taxable income only ($30,000), forgetting to add the contributions when comparing to the threshold"", ""$3,750"": ""Correct answer"", ""$8,250"": ""Charged 15% on the full $55,000 excess instead of the lesser-of $25,000 contributions"", ""$7,500"": ""Applied a 30% rate instead of the 15% Division 293 rate""}","{""formula"": ""min((taxable_income + concessional) - threshold, concessional) * div293_rate"", ""params"": {""taxable_income"": 280000, ""concessional"": 25000, ""threshold"": 250000, ""div293_rate"": 0.15}, ""expected"": 3750.0}"
Q077,FBT,Minor benefits exemption – infrequent benefit under $300,Fringe benefits tax,2024-25,medium,"[""FBTAA 1986 s 58P"", ""FBTAA 1986 s 136(1)""]",https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/exemptions-concessions-and-other-ways-to-reduce-fbt/minor-benefits-exemption,"Brightwater Pty Ltd gives one of its employees, Dana, a hamper with a notional taxable value of $275 as a one-off gift after she returns from parental leave. The employer is registered for GST and would be entitled to a GST credit on the hamper. No similar benefits are provided to Dana during the FBT year and it would be unreasonable to treat the hamper as a fringe benefit.

What is the taxable value of the hamper benefit for FBT purposes?

A. $275.00
B. $243.87
C. $0.00
D. $268.87",$275.00,$243.87,$0.00,$268.87,C,$0.00,0.0,AUD,"Notional taxable value of the hamper = $275, which is less than $300 → The benefit is provided once (infrequent and irregular) and it would be unreasonable to treat it as a fringe benefit → The minor benefits exemption (s 58P) applies, so the benefit is exempt and the taxable value is $0","{""$275.00"": ""Used the notional value $275 as the taxable value, missing that the minor benefits exemption makes it $0"", ""$243.87"": ""Treated the exempt minor benefit as taxable and grossed it up at the Type 2 rate then applied 47% FBT"", ""$0.00"": ""Correct answer"", ""$268.87"": ""Treated the exempt benefit as a taxable Type 1 benefit, grossing up at 2.0802 and applying 47% FBT""}","{""formula"": ""0 * notional_value"", ""params"": {""notional_value"": 275, ""gross_up_t1"": 2.0802, ""gross_up_t2"": 1.8868, ""fbt_rate"": 0.47}, ""expected"": 0.0}"
Q078,Superannuation,Carry-forward of unused concessional contributions cap,Superannuation (concessional contributions cap),2021-22,medium,"[""ITAA 1997 s 291-20"", ""ITAA 1997 s 291-25""]",https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap,"Diego has contributed less than his concessional contributions cap for several years and has accumulated $52,000 of unused concessional cap carried forward into 2021-22 (from 2018-19 to 2020-21). At 30 June 2021 his total super balance is below $500,000, so he is eligible to use his carried-forward amounts. The standard concessional contributions cap for 2021-22 is $27,500.

What is the maximum amount of concessional contributions Diego can make in 2021-22 using his carried-forward unused cap?

A. $41,500
B. $27,500
C. $79,500
D. $82,000","$41,500","$27,500","$79,500","$82,000",C,"$79,500",79500.0,AUD,"Carried-forward unused concessional cap entering 2021-22 = $52,000 → Add the standard 2021-22 concessional contributions cap of $27,500 (cap kept fixed from the base example) → Maximum concessional contributions Diego can make = 52,000 + 27,500 = $79,500","{""$41,500"": ""Subtracted the $38,000 Diego actually contributed, which the cap headroom does not deduct"", ""$27,500"": ""Ignored the carried-forward unused cap and used only the annual cap"", ""$79,500"": ""Correct answer"", ""$82,000"": ""Added the 2024-25 cap of $30,000 instead of the 2021-22 cap of $27,500""}","{""formula"": ""accumulated_unused + annual_cap_2122"", ""params"": {""accumulated_unused"": 52000, ""annual_cap_2122"": 27500, ""annual_cap_2425"": 30000, ""contributed_2122"": 38000}, ""expected"": 79500.0}"
Q079,Rental property,Apportioning expenses where the property is rented for only part of the year (days),Income tax (rental),2024-25,easy,"[""ITAA 1997 s 8-1""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses,"Spencer owns a property in Tasmania. He rents it out from 1 October 2024 to 7 May 2025, a total of 219 days, and lives in it alone for the rest of the year. The council rates are $1,650 per year. He apportions the council rates on a time basis (days rented).

What council rates deduction can Spencer claim against his rental income?

A. $1,650.00
B. $987.30
C. $990.00
D. $660.00","$1,650.00",$987.30,$990.00,$660.00,C,$990.00,990.0,AUD,"Apportion the annual rates by the portion of the year rented: 1,650 x (219 / 365) → = 1,650 x 0.6000 = 990","{""$1,650.00"": ""Claimed the full year of council rates without apportioning for the private-use period"", ""$987.30"": ""Divided by 366 instead of 365"", ""$990.00"": ""Correct answer"", ""$660.00"": ""Apportioned using the private-use days (215) instead of the days rented (150)""}","{""formula"": ""council_rates * days_rented / days_in_year"", ""params"": {""council_rates"": 1650, ""days_rented"": 219, ""days_in_year"": 365}, ""expected"": 990.0}"
Q080,Individual income tax,Low income tax offset (LITO) taper,Income tax offset,2021-22,medium,"[""ITAA 1936 s 159N"", ""ITAA 1997 s 61-570""]",https://www.ato.gov.au/forms-and-instructions/low-and-middle-income-earner-tax-offsets,"Naomi's taxable income is $42,000 for 2021-22. The ATO works out her low income tax offset (LITO) as the maximum offset of $700 minus 5 cents for every dollar of taxable income above $37,500.

What is Naomi's low income tax offset (LITO) amount for 2021-22?

A. $632.50
B. $700.00
C. $475.00
D. -$1,400.00",$632.50,$700.00,$475.00,"-$1,400.00",C,$475.00,475.0,AUD,"Kept taxable income within the 2021-22 LITO 5c taper band ($37,501-$45,000) → LITO = $700 minus 5 cents for every $1 above $37,500 → Income above the taper start = 42,000 - 37,500 = 4,500 → Reduction = 4,500 x 0.05 = 225 → LITO = 700 - 225 = 475","{""$632.50"": ""Used the 1.5c taper rate (which only applies above $45,000) instead of 5c"", ""$700.00"": ""Gave the full $700 LITO without applying the taper above $37,500"", ""$475.00"": ""Correct answer"", ""-$1,400.00"": ""Applied the 5c taper to the whole taxable income instead of only the amount over $37,500""}","{""formula"": ""max_offset - (taxable_income - taper_start) * taper_rate"", ""params"": {""taxable_income"": 42000, ""max_offset"": 700, ""taper_start"": 37500, ""taper_rate"": 0.05}, ""expected"": 475.0}"
Q081,CGT,Capital loss is never discounted – loss applied at full value,Income tax (CGT),2024-25,medium,"[""ITAA 1997 s 102-10"", ""ITAA 1997 s 110-55"", ""ITAA 1997 s 115-100""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/how-to-calculate-your-cgt,"In the 2024-25 income year Tom has two CGT events. He makes a $12,000 capital gain on shares he held for 3 years (eligible for the 50% discount). He also sells a rental property he held for 6 years for less than its reduced cost base, making a capital LOSS of $9,000. The 50% CGT discount applies only to capital gains, never to capital losses; capital losses are applied at their full value against gains BEFORE the discount.

What is Tom's net capital gain for 2024-25 after applying the capital loss and the CGT discount?

A. $3,750
B. $3,000
C. $1,500
D. -$3,000","$3,750","$3,000","$1,500","-$3,000",C,"$1,500",1500.0,AUD,"Capital loss is applied at its FULL value (losses are never discounted): loss = 9,000 → Subtract the loss from the gain before any discount: 12,000 - 9,000 = 3,000 → Apply the 50% CGT discount to the remaining eligible gain: 3,000 x 0.5 = 1,500","{""$3,750"": ""Trap: wrongly discounted the capital loss by 50% before offsetting it"", ""$3,000"": ""Offset the loss but forgot to apply the 50% discount to the remaining gain"", ""$1,500"": ""Correct answer"", ""-$3,000"": ""Applied the discount to the gain before subtracting the loss (wrong order)""}","{""formula"": ""(share_gain - property_loss) * discount_rate"", ""params"": {""share_gain"": 12000, ""property_loss"": 9000, ""discount_rate"": 0.5}, ""expected"": 1500.0}"
Q082,Division 7A & Company Tax,Over-franking tax on an over-franked distribution,Income tax (imputation),2017-18,medium,"[""ITAA 1997 s 203-50""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/in-detail/how-to-calculate-over-franking-tax-and-under-franking-debit,"Re Pty Ltd has a 30% corporate tax rate for imputation purposes (gross-up rate 2.33333) and a benchmark franking percentage of 50%. On 31 January 2018 it makes a frankable distribution of $12,500 franked to 70%, which exceeds its 50% benchmark, so it over-franks. The over-franking tax = frankable distribution x franking % differential / gross-up rate, where the differential is 20% (70% actual less 50% benchmark).

How much over-franking tax does Re Pty Ltd incur on the distribution?

A. $948.26
B. $1,071.43
C. $2,500.00
D. $3,750.01",$948.26,"$1,071.43","$2,500.00","$3,750.01",B,"$1,071.43",1071.43,AUD,"Frankable distribution = 12,500; franked to 70%; benchmark = 50% → Franking percentage differential = 70% - 50% = 20% → Gross-up rate (30% rate) = 2.33333 → Over-franking tax = 12,500 x 20% / 2.33333 = 1,071.43","{""$948.26"": ""Used the 27.5% gross-up rate (2.6364) instead of the 30% rate (2.33333)"", ""$1,071.43"": ""Correct answer"", ""$2,500.00"": ""Multiplied the distribution by the 20% differential but forgot to divide by the gross-up rate"", ""$3,750.01"": ""Used the full 70% franking percentage instead of the 20% excess over the 50% benchmark""}","{""formula"": ""distribution * franking_differential / gross_up_rate"", ""params"": {""distribution"": 12500, ""franking_differential"": 0.2, ""gross_up_rate"": 2.33333}, ""expected"": 1071.43}"
Q083,Division 7A & Company Tax,Maximum franking credit on a distribution – 30% tax rate,Income tax (imputation),2019-20,medium,"[""ITAA 1997 s 202-60"", ""ITAA 1997 s 995-1""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/paying-dividends-and-other-distributions/allocating-franking-credits,"Ironbark Industries has a prior-year aggregated turnover over $50 million, so it is not a base rate entity and its corporate tax rate for imputation purposes for the 2019-20 income year is 30%. It wants to distribute $250,000 of profit to its shareholders. The maximum franking credit is the frankable distribution multiplied by (1 / applicable gross-up rate), where the gross-up rate = (100% - 30%) / 30% = 2.3333.

What is the maximum franking credit Ironbark Industries can attach to the $250,000 distribution?

A. $94,826.28
B. $75,000.00
C. $583,325.00
D. $107,144.39","$94,826.28","$75,000.00","$583,325.00","$107,144.39",D,"$107,144.39",107144.39,AUD,"Corporate tax rate for imputation purposes = 30% (not a base rate entity) → Applicable gross-up rate = (100% - 30%) / 30% = 2.3333 → Maximum franking credit = 250,000 x (1 / 2.3333) = 107,144.39","{""$94,826.28"": ""Used the 27.5% base-rate-entity gross-up rate (2.6364) instead of the 30% rate (2.3333)"", ""$75,000.00"": ""Multiplied the distribution by the 30% tax rate directly instead of dividing by the gross-up rate"", ""$583,325.00"": ""Multiplied by the gross-up rate instead of by its reciprocal (1 / gross-up rate)"", ""$107,144.39"": ""Correct answer""}","{""formula"": ""distribution * (1 / gross_up_rate)"", ""params"": {""distribution"": 250000, ""gross_up_rate"": 2.3333}, ""expected"": 107144.39}"
Q084,Division 7A,Loan fully repaid before lodgment day – no deemed dividend,Income tax (Division 7A),2024-25,hard,"[""ITAA 1936 s 109D"", ""ITAA 1936 s 109N""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/private-company-benefits-division-7a-dividends/in-detail/division-7a-loans,"On 1 September 2024, Marlowe Pty Ltd, a private company, lends $40,000 to its shareholder Priya. Priya repays the entire $40,000 in full on 1 April 2025, which is before the company's lodgment day for the 2024-25 income year (the earlier of the due date for lodgment or the actual lodgment date). There is no written loan agreement. The Division 7A benchmark interest rate for 2024-25 is 8.77%.

What is the amount of the deemed Division 7A dividend to Priya for 2024-25?

A. $43,508
B. $0
C. $40,000
D. $3,508","$43,508",$0,"$40,000","$3,508",B,$0,0.0,AUD,"A private company loan is treated as a deemed dividend only if it is not fully repaid before the company's lodgment day for the year the loan is made → Priya repaid the full $40,000 on 1 April 2025, before the company's lodgment day → Because the loan was fully repaid before lodgment day, there is no deemed dividend: $0","{""$43,508"": ""Treated the loan plus a year of benchmark interest as the deemed dividend"", ""$0"": ""Correct answer"", ""$40,000"": ""Treated the whole $40,000 loan as a deemed dividend, ignoring that it was repaid before lodgment day"", ""$3,508"": ""Calculated notional interest at the benchmark rate as if an interest benefit arose""}","{""formula"": ""0 * loan_amount"", ""params"": {""loan_amount"": 40000, ""benchmark_rate"": 0.0877}, ""expected"": 0.0}"
Q085,Employment,Genuine redundancy – amount over the tax-free limit subject to the ETP cap,Income tax (employment termination),2023-24,medium,"[""ITAA 1997 s 83-170"", ""ITAA 1997 s 82-10"", ""ITAA 1997 s 83-175""]",https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/when-a-worker-leaves-your-business/taxation-of-termination-payments/redundancy-and-early-retirement,"Darren receives a genuine redundancy payment in 2023-24. The genuine redundancy part of his payment is $205,000. His tax-free part is $95,901, based on his 14 years of service (2023-24 base amount $11,985 plus service amount $5,994 per completed year). The amount above the tax-free limit is part of his employment termination payment (ETP) and is subject to the ETP cap.

How much of Darren's $205,000 genuine redundancy payment is in excess of the tax-free limit and therefore part of his ETP (subject to the ETP cap)?

A. $95,901
B. $109,099
C. $121,084
D. $187,021","$95,901","$109,099","$121,084","$187,021",B,"$109,099",109099.0,AUD,"Tax-free limit = base + (service × years) = 11,985 + (5,994 × 14) = 95,901 → Amount in excess of the tax-free limit = genuine redundancy part − tax-free limit → = 205,000 − 95,901 = 109,099 (this ETP amount is taxed concessionally as it is under the ETP cap)","{""$95,901"": ""Reported the tax-free part itself instead of the amount in excess of it"", ""$109,099"": ""Correct answer"", ""$121,084"": ""Omitted the base amount from the tax-free limit before subtracting"", ""$187,021"": ""Subtracted only one year's service amount instead of 14 years when working out the tax-free limit""}","{""formula"": ""genuine_part - (base + service*years)"", ""params"": {""genuine_part"": 205000, ""base"": 11985, ""service"": 5994, ""years"": 14}, ""expected"": 109099.0}"
Q086,Rental property,Renting out part of a property (room plus shared general areas),Income tax (rental),2024-25,medium,"[""ITAA 1997 s 8-1"", ""IT 2167""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses,"Beverley rents out one room in her residence (floor area 25% of the residence) plus equal shared access to the general areas (kitchen, bathroom, laundry, floor area 55% of the residence) for the full 12 months at $300 per week. The annual mortgage interest, building insurance, rates and taxes for the whole property are $16,000. The room expenses are 25% of $16,000; the general-area expenses are 55% of $16,000 apportioned 50% to reflect Beverley's equal shared use.

What is Beverley's net rental income from renting out the room for the year?

A. $2,800
B. $7,200
C. $11,600
D. $9,200","$2,800","$7,200","$11,600","$9,200",B,"$7,200",7200.0,AUD,"Rent = 52 weeks x $300 = 15,600 → Room expenses = 16,000 x 25% = 4,000 → General-area expenses = 16,000 x 55% x 50% = 4,400 → Net rental income = 15,600 - 4,000 - 4,400 = 7,200","{""$2,800"": ""Claimed 100% of the general-area expenses instead of John's 50% shared portion"", ""$7,200"": ""Correct answer"", ""$11,600"": ""Claimed only the room's 20% and ignored the shared general-area expenses entirely"", ""$9,200"": ""Applied the 50% shared factor to the room expenses as well as the general areas""}","{""formula"": ""weeks_rented * rent_per_week - (total_expenses * room_fraction + total_expenses * general_fraction * shared_use)"", ""params"": {""weeks_rented"": 52, ""rent_per_week"": 300, ""total_expenses"": 16000, ""room_fraction"": 0.25, ""general_fraction"": 0.55, ""shared_use"": 0.5}, ""expected"": 7200.0}"
Q087,Study and training loans,Compulsory repayment – 2025-26 marginal 15c band vs old whole-of-income rate,Study and training support loan – compulsory repayment,2025-26,easy,"[""Higher Education Support Act 2003 s 154-1"", ""Higher Education Support Act 2003 s 154-20""]",https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans/study-and-training-loans-what-s-new,"Harriet has a HELP debt and a repayment income of $96,000 in the 2025-26 income year. From 2025-26 the system is marginal: she pays 15% of her repayment income above $67,000. (Before the law change the repayment would have been 3.5% of her total $96,000 repayment income, i.e. $3,360.)

Under the 2025-26 marginal system, what is Harriet's compulsory HELP repayment?

A. $4,350
B. $3,360
C. $14,400
D. $1,015","$4,350","$3,360","$14,400","$1,015",A,"$4,350",4350.0,AUD,"Harriet's repayment income $96,000 is above $67,000 but below $125,000, so it stays within the same 15c marginal band as the base example → Income above the minimum threshold = 96,000 - 67,000 = 29,000 → Compulsory repayment = 29,000 x 15% = 4,350 → (Under the old whole-of-income system it would have been 3.5% x 96,000 = 3,360)","{""$4,350"": ""Correct answer"", ""$3,360"": ""Used the old pre-2025-26 system (3.5% of total repayment income = $3,360)"", ""$14,400"": ""Applied 15% to the whole repayment income instead of only the excess over $67,000"", ""$1,015"": ""Used the marginal base correctly but applied the old 3.5% rate to the excess""}","{""formula"": ""(repayment_income - threshold) * rate"", ""params"": {""repayment_income"": 96000, ""threshold"": 67000, ""rate"": 0.15, ""old_rate"": 0.035}, ""expected"": 4350.0}"
Q088,Division 7A & Company Tax,Franking account closing balance (credits less debits),Income tax (imputation),2013-14,medium,"[""ITAA 1997 s 205-15"", ""ITAA 1997 s 205-30""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/paying-dividends-and-other-distributions/franking-account,"Pinehurst Logistics Pty Ltd's franking account starts at $0. During the 2013-14 year it records franking credits for PAYG instalment payments of $120 (21 Jul 2013), $180 (21 Oct 2013), $240 (21 Jan 2014) and $160 (21 Apr 2014), and a $45 credit for a fully franked dividend received on 27 Jun 2014. It records franking debits of $250 for a tax refund on 1 May 2014 and $400 for a franked distribution to members on 30 June 2014.

What is the franking account balance as at 30 June 2014?

A. $595
B. $895
C. $50
D. $95",$595,$895,$50,$95,D,$95,95.0,AUD,"Total franking credits = 120 + 180 + 240 + 160 (PAYG instalments) + 45 (franked dividend received) = 745 → Total franking debits = 250 (tax refund) + 400 (franked distribution to members) = 650 → Closing balance = 745 - 650 = 95 (account in surplus, so no franking deficit tax)","{""$595"": ""Treated the $250 tax refund as a franking credit instead of a debit"", ""$895"": ""Treated the $400 distribution to members as a franking credit instead of a debit"", ""$50"": ""Omitted the $45 franking credit on the fully franked dividend received"", ""$95"": ""Correct answer""}","{""formula"": ""paygi1 + paygi2 + paygi3 + paygi4 + div_credit - refund_debit - dist_debit"", ""params"": {""paygi1"": 120, ""paygi2"": 180, ""paygi3"": 240, ""paygi4"": 160, ""div_credit"": 45, ""refund_debit"": 250, ""dist_debit"": 400}, ""expected"": 95.0}"
Q089,CGT,'Other' method – asset held less than 12 months (property),Income tax (CGT),2023-24,medium,"[""ITAA 1997 s 104-10"", ""ITAA 1997 s 110-25"", ""ITAA 1997 s 115-25""]",https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-guide-2024/about-capital-gains-tax/how-to-work-out-your-capital-gain-or-capital-loss,"Soraya bought a property for $333,000 under a contract dated 19 June 2023 (deposit $33,000, balance $300,000 on settlement 7 August 2023), paying $9,000 stamp duty and $3,000 solicitor's fees on purchase. She sold the property on 20 October 2023 for $420,000, incurring $2,000 solicitor's fees and $4,500 agent's commission on sale. Her cost base is $351,500 (300,000 + 33,000 + 9,000 + 3,000 + 2,000 + 4,500). As she bought and sold within 12 months she must use the 'other' method.

What is Soraya's capital gain on the property using the 'other' method?

A. $37,500
B. $75,000
C. $34,250
D. $68,500","$37,500","$75,000","$34,250","$68,500",D,"$68,500",68500.0,AUD,"Cost base = 300,000 + 33,000 + 9,000 + 3,000 + 2,000 + 4,500 = 351,500 → Capital gain ('other' method) = 420,000 - 351,500 = 68,500 → Held less than 12 months, so neither the discount nor the indexation method is available","{""$37,500"": ""Omitted sale costs and also wrongly applied the discount"", ""$75,000"": ""Omitted the $5,500 of sale costs (solicitor + agent) from the cost base"", ""$34,250"": ""Wrongly applied the 50% CGT discount even though the asset was held less than 12 months"", ""$68,500"": ""Correct answer""}","{""formula"": ""proceeds - cost_base"", ""params"": {""proceeds"": 420000, ""cost_base"": 351500, ""cost_base_excl_sale_costs"": 345000, ""discount_rate"": 0.5}, ""expected"": 68500.0}"
Q090,Rental property,Holiday home apportionment by period genuinely available for rent (net rental income),Income tax (rental),2024-25,medium,"[""ITAA 1997 s 8-1"", ""IT 2167""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses,"Anjali and Theodore jointly own a holiday home. They rent it out for 5 weeks (15 December to 19 January) and reserve it for their own use the rest of the year. Their total expenses for the home were $46,950, of which $1,450 is the agent's commission and advertising for tenants (fully deductible). The remaining $45,500 of expenses (interest, insurance, repairs, maintenance, council rates) must be apportioned to the 5 weeks (out of 52) the property was rented out. They received $3,900 per week x 5 = $19,500 in rent.

What net rental income do Anjali and Theodore declare for the year (combined)?

A. -$23,075.00
B. -$27,450.00
C. $14,985.58
D. $13,675.00","-$23,075.00","-$27,450.00","$14,985.58","$13,675.00",D,"$13,675.00",13675.0,AUD,"Apportion the general expenses to the 5 weeks rented: (5 / 52) x 45,500 = 4,375 → Add the fully deductible agent commission and advertising: 4,375 + 1,450 = 5,825 total deductions → Net rental income = rent 19,500 - deductions 5,825 = 13,675","{""-$23,075.00"": ""Apportioned using the 48 private-use weeks instead of the 4 weeks rented"", ""-$27,450.00"": ""Deducted the full year of expenses instead of apportioning to the 4 weeks rented"", ""$14,985.58"": ""Apportioned the agent commission/advertising too, instead of claiming it in full"", ""$13,675.00"": ""Correct answer""}","{""formula"": ""rent_received - ((weeks_rented / weeks_in_year) * apportionable_expenses + agent_costs)"", ""params"": {""rent_received"": 19500, ""apportionable_expenses"": 45500, ""weeks_rented"": 5, ""weeks_in_year"": 52, ""agent_costs"": 1450}, ""expected"": 13675.0}"
Q091,Individual income tax,Medicare levy surcharge - Tier 1 single,Medicare levy surcharge,2025-26,medium,"[""A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999"", ""Medicare Levy Act 1986 s 8B""]",https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates,"In 2025-26 Leon is 38, single with no dependants and has no appropriate private patient hospital cover. His taxable income is $85,000 and he declares total reportable fringe benefits of $23,000, so his income for MLS purposes is $108,000. For 2025-26 a single person with income for MLS purposes between $101,001 and $118,000 is a Tier 1 earner and pays MLS at 1%, calculated on the sum of taxable income and reportable fringe benefits.

What is Leon's Medicare levy surcharge liability for 2025-26?

A. $2,160
B. $1,080
C. $1,350
D. $850","$2,160","$1,080","$1,350",$850,B,"$1,080",1080.0,AUD,"Income for MLS purposes = 85,000 taxable income + 23,000 reportable fringe benefits = 108,000 → Kept income for MLS purposes within the 2025-26 single Tier 1 range ($101,001-$118,000), so the MLS rate is 1% → MLS = 108,000 x 0.01 = 1,080","{""$2,160"": ""Confused the surcharge with the 2% Medicare levy rate"", ""$1,080"": ""Correct answer"", ""$1,350"": ""Used the Tier 2 rate of 1.25% instead of the correct Tier 1 rate of 1%"", ""$850"": ""Calculated the surcharge on taxable income only, ignoring the reportable fringe benefits""}","{""formula"": ""(taxable_income + reportable_fringe_benefits) * tier1_rate"", ""params"": {""taxable_income"": 85000, ""reportable_fringe_benefits"": 23000, ""tier1_rate"": 0.01, ""tier2_rate"": 0.0125, ""medicare_levy_rate"": 0.02}, ""expected"": 1080.0}"
Q092,Rental property,"Decline in value of a depreciating asset (diminishing value, part-year)",Income tax (rental),2024-25,medium,"[""ITAA 1997 s 40-25"", ""ITAA 1997 s 40-70"", ""ITAA 1997 s 40-72""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses,"Priscilla and her sister Coralie bought a newly built rental property on 24 August 2024 as tenants in common (50% each). A professional report identifies a new oven as a depreciating asset, and Priscilla's interest in the oven has a cost (base value) of $1,800 with an effective life of 8 years. They held the asset for 311 days of 2024-25 and use it wholly to produce rental income, so the decline in value is worked out using the diminishing value method: base value x (days held / 365) x (200% / effective life).

What is Priscilla's decline in value deduction for her interest in the oven for 2024-25?

A. $191.71
B. $225.00
C. $450.00
D. $383.42",$191.71,$225.00,$450.00,$383.42,D,$383.42,383.42,AUD,"Diminishing value rate = 200% / effective life = 200% / 8 = 25.00% → Apportion for days held: 311 / 365 → Decline in value = 1,800 x (311 / 365) x (2.00 / 8) = 383.42","{""$191.71"": ""Used the prime cost rate (100%/life) instead of the diminishing value rate (200%/life)"", ""$225.00"": ""Halved the full-year diminishing value (confused the part-year with the low-value-pool half-rate) instead of apportioning by days"", ""$450.00"": ""Claimed a full year of decline in value without apportioning for the 346 days held"", ""$383.42"": ""Correct answer""}","{""formula"": ""base_value * (days_held / days_in_year) * (diminishing_rate_pct / effective_life)"", ""params"": {""base_value"": 1800, ""days_held"": 311, ""days_in_year"": 365, ""diminishing_rate_pct"": 2.0, ""effective_life"": 8}, ""expected"": 383.42}"
Q093,GST,Maximum GST credit on a car above the car limit – 1/11 of the car limit,GST,2025-26,medium,"[""GST Act s 69-10"", ""ITAA 1997 s 40-230""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/motor-vehicle-and-transport/gst-and-motor-vehicles/purchasing-a-motor-vehicle,"Nadia purchases a new non fuel-efficient car for $84,500 (including $7,200 GST and luxury car tax) on 12 July 2025 and plans to use it 100% in carrying on her business. The car limit for the 2025-26 financial year is $69,674. Because the car's price exceeds the car limit, the GST credit is capped at one eleventh of the car limit.

What is the maximum GST credit Nadia can claim on the car for 2025-26?

A. $7,200.00
B. $6,334.00
C. $6,967.40
D. $7,681.82","$7,200.00","$6,334.00","$6,967.40","$7,681.82",B,"$6,334.00",6334.0,AUD,"The car's price ($84,500) exceeds the 2025-26 car limit of $69,674 → The maximum GST credit is capped at one eleventh of the car limit → Maximum GST credit = 69,674 / 11 = 6,334","{""$7,200.00"": ""Claimed the full $7,200 GST shown on the invoice, ignoring the car limit cap"", ""$6,334.00"": ""Correct answer"", ""$6,967.40"": ""Took 10% of the car limit instead of 1/11"", ""$7,681.82"": ""Claimed 1/11 of the full car price instead of capping at 1/11 of the car limit""}","{""formula"": ""car_limit / 11"", ""params"": {""car_price"": 84500, ""car_limit"": 69674, ""gst_in_price"": 7200}, ""expected"": 6334.0}"
Q094,Individual income tax,Medicare levy surcharge – private hospital cover removes the surcharge,Medicare levy surcharge,2024-25,medium,"[""A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 s 15"", ""Private Health Insurance Act 2007 s 22-30""]",https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates,"Priya is single with no dependants and her income for Medicare levy surcharge (MLS) purposes for 2024-25 is $130,000, which sits in the 2024-25 single Tier 2 band ($113,001 - $151,000, rate 1.25%). However, Priya held an appropriate level of private patient HOSPITAL cover for the entire income year. The MLS only applies for the days a person does NOT have appropriate hospital cover, so a full year of hospital cover means no surcharge regardless of income.

What is Priya's Medicare levy surcharge for 2024-25?

A. $1,625
B. $0
C. $1,300
D. $2,600","$1,625",$0,"$1,300","$2,600",B,$0,0.0,AUD,"MLS is only payable for days WITHOUT appropriate private patient hospital cover. → Priya held appropriate hospital cover for the full 2024-25 year. → Therefore the surcharge is $0, even though her $130,000 income would otherwise be in the Tier 2 (1.25%) band.","{""$1,625"": ""Charged the Tier 2 surcharge (1.25%) on the income, ignoring that full-year hospital cover exempts the surcharge"", ""$0"": ""Correct answer"", ""$1,300"": ""Charged a Tier 1 (1%) surcharge despite the hospital cover and the Tier 2 income level"", ""$2,600"": ""Confused the surcharge with the 2% Medicare levy and charged that instead""}","{""formula"": ""income_for_mls * 0"", ""params"": {""income_for_mls"": 130000, ""tier2_rate"": 0.0125, ""tier1_rate"": 0.01, ""medicare_levy_rate"": 0.02}, ""expected"": 0.0}"
Q095,Depreciation,Low-value pool – decline in value (18.75% in year added + 37.5% on prior balance),"Income tax (capital allowances, Div 40 low-value pool)",2019-20,medium,"[""ITAA 1997 s 40-440"", ""ITAA 1997 s 40-425""]",https://www.ato.gov.au/forms-and-instructions/depreciating-assets-guide-2020/low-value-pools,"During 2019-20, Priya bought a scanner for $910 (a low-cost asset). She estimated 80% taxable use, so she allocated 80% of the cost, that is $728, to her low-value pool. At the end of 2018-19 her low-value pool had a closing balance of $8,000. In 2019-20 she allocated no other low-cost or low-value assets to the pool. The pool rate is 37.5%, and low-cost assets allocated during the year are written off at half that rate (18.75%) in the year they are added.

What is Priya's deduction for the decline in value of the low-value pool for 2019-20 (ignoring GST)?

A. $3,273.00
B. $1,636.50
C. $1,773.00
D. $3,136.50","$3,273.00","$1,636.50","$1,773.00","$3,136.50",D,"$3,136.50",3136.5,AUD,"18.75% of the taxable-use cost of the scanner added this year: 18.75% x 728 = 136.50 → plus 37.5% of the prior-year closing pool balance: 37.5% x 8,000 = 3,000 → Total decline in value = 136.50 + 3,000 = 3,136.50, rounded to 3,137","{""$3,273.00"": ""Used the full 37.5% rate on the newly added asset instead of the half rate (18.75%)"", ""$1,636.50"": ""Applied the half rate (18.75%) to the whole pool including the prior balance"", ""$1,773.00"": ""Swapped the rates - applied 37.5% to the new asset and 18.75% to the prior pool balance"", ""$3,136.50"": ""Correct answer""}","{""formula"": ""new_cost_taxable * add_rate + prior_closing * pool_rate"", ""params"": {""new_cost_taxable"": 728, ""prior_closing"": 8000, ""add_rate"": 0.1875, ""pool_rate"": 0.375}, ""expected"": 3136.5}"
Q096,Depreciation,Second element of cost added to a written-off asset (small business),"Income tax (simplified depreciation, Div 328)",2025-26,medium,"[""ITAA 1997 s 328-180"", ""ITAA 1997 s 40-190""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off,"Tomas is a sole trader (aggregated turnover under $10 million) using the simplified depreciation rules. He had claimed his backhoe under temporary full expensing in an earlier year. On 19 September 2025 he buys and installs a new hydraulic attachment for the backhoe costing $14,000 - the first addition to the second element of the backhoe's cost, and under the $20,000 instant asset write-off limit. He also buys a new plasma cutter for $3,800 (used only for business, delivered 6 February 2026), which is also under the limit. Both amounts are immediately deductible in his 2025-26 return.

What total deduction can Tomas claim in 2025-26 for the attachment cost addition and the plasma cutter?

A. $17,800
B. $3,800
C. -$2,200
D. $14,000","$17,800","$3,800","-$2,200","$14,000",A,"$17,800",17800.0,AUD,"Hydraulic attachment is the first second-element (cost addition) to an asset written off earlier and is under the $20,000 limit, so its full $14,000 is immediately deductible → Plasma cutter costs $3,800 (under the limit, 100% business use), so its full cost is immediately deductible → Total deduction = 14,000 + 3,800 = 17,800","{""$17,800"": ""Correct answer"", ""$3,800"": ""Claimed only the cutter and missed the second-element attachment deduction"", ""-$2,200"": ""Wrongly netted off the $20,000 instant asset write-off limit from the total"", ""$14,000"": ""Claimed only the attachment cost addition and missed the separate plasma cutter deduction""}","{""formula"": ""bucket_cost + welder_cost"", ""params"": {""bucket_cost"": 14000, ""welder_cost"": 3800, ""limit"": 20000}, ""expected"": 17800.0}"
Q097,Rental property,"Capital works deduction (2.5% of construction cost, part-year apportioned by days)",Income tax (rental),2024-25,medium,"[""ITAA 1997 Div 43"", ""ITAA 1997 s 43-25"", ""ITAA 1997 s 43-210""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses,"Harriet and Bruce acquired a rental property (as joint tenants, not carrying on a business of letting rental properties) on 24 August 2024. A supervising architect estimated the construction cost eligible for capital works deduction at $168,400. Construction started in October 1992, so the deduction rate is 2.5% per year. Because they acquired the property part-way through the year, they can claim the deduction only for the 311 days from 24 August 2024 to 30 June 2025.

What is the maximum capital works deduction Harriet and Bruce can claim for 2024-25?

A. $3,577.35
B. $4,210.00
C. $3,587.15
D. $5,739.44","$3,577.35","$4,210.00","$3,587.15","$5,739.44",C,"$3,587.15",3587.15,AUD,"Annual capital works deduction = 168,400 x 2.5% = 4,210 → Apportion for the 311 days of ownership in the year: 4,210 x (311 / 365) → = 168,400 x 0.025 x (311 / 365) = 3,587 (the denominator is always 365, even in a leap year)","{""$3,577.35"": ""Divided by 366 instead of 365 for the day apportionment"", ""$4,210.00"": ""Claimed the full annual 2.5% without apportioning for the part-year of ownership"", ""$3,587.15"": ""Correct answer"", ""$5,739.44"": ""Used the 4% rate (only for certain short-term traveller accommodation / build-to-rent) instead of 2.5%""}","{""formula"": ""construction_cost * rate * days_rented / days_in_year"", ""params"": {""construction_cost"": 168400, ""rate"": 0.025, ""days_rented"": 311, ""days_in_year"": 365}, ""expected"": 3587.15}"
Q098,CGT,"Net capital gain – applying a prior-year loss to the non-discountable gain first, then the 50% discount",Income tax (CGT),2024-25,hard,"[""ITAA 1997 s 102-5"", ""ITAA 1997 s 102-15"", ""ITAA 1997 s 115-100"", ""ITAA 1997 s 115-25""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/using-capital-losses-to-reduce-capital-gains,"In 2024-25 Owen makes two capital gains: a $48,000 gain on an investment property he owned for 6 years (eligible for the 50% CGT discount) and a $9,000 gain on a painting (a collectable) he bought and sold within 8 months (held less than 12 months, so NOT eligible for the discount). He also has a $5,000 carried-forward net capital loss. To maximise the benefit, he chooses to apply the capital loss first against the gain that does NOT qualify for the discount. Capital losses are always applied before the discount.

What is Owen's net capital gain for 2024-25?

A. $33,000
B. $26,000
C. $28,000
D. $30,500","$33,000","$26,000","$28,000","$30,500",C,"$28,000",28000.0,AUD,"Apply the $5,000 loss against the non-discountable gain first: 9,000 − 5,000 = 4,000 (no discount applies as it was held < 12 months) → The discountable property gain is untouched by the loss: 48,000 → Apply the 50% discount to the property gain: 48,000 × 0.5 = 24,000 → Net capital gain = 24,000 + 4,000 = 28,000","{""$33,000"": ""Ignored the $5,000 carried-forward capital loss entirely"", ""$26,000"": ""Wrongly applied the 50% discount to the non-discountable (held < 12 months) gain as well"", ""$28,000"": ""Correct answer"", ""$30,500"": ""Applied the loss against the discountable gain first, halving its value through the discount instead of using it against the non-discountable gain""}","{""formula"": ""(gain_disc) * discount_rate + (gain_nondisc - prior_loss)"", ""params"": {""gain_disc"": 48000, ""gain_nondisc"": 9000, ""prior_loss"": 5000, ""discount_rate"": 0.5}, ""expected"": 28000.0}"
Q099,CGT,CGT discount denied – asset held less than 12 months (property),Income tax (CGT),2024-25,medium,"[""ITAA 1997 s 115-25"", ""ITAA 1997 s 115-100"", ""ITAA 1997 s 104-10""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/cgt-discount,"Priya, an Australian resident for tax purposes, signs a contract to buy a residential investment property on 5 August 2024 and signs the contract to sell it on 1 July 2025 – an ownership period of just under 11 months between the two contract dates. She makes a capital gain of $40,000 (capital proceeds less cost base) and has no capital losses. The CGT discount requires the asset to be owned for at least 12 months before the CGT event (the contract date), excluding the days of acquisition and the CGT event.

What capital gain must Priya include in her 2024-25 tax return?

A. $40,000
B. $20,000
C. $10,000
D. $30,000","$40,000","$20,000","$10,000","$30,000",A,"$40,000",40000.0,AUD,"For a contract sale, the CGT event happens on the contract date (1 July 2025), not at settlement → Ownership period between the buy contract (5 Aug 2024) and sell contract (1 Jul 2025) is less than 12 months → The 50% CGT discount requires ownership of at least 12 months, so it is NOT available → Capital gain to declare = full gain = 40,000","{""$40,000"": ""Correct answer"", ""$20,000"": ""Trap: applied the 50% CGT discount even though the asset was held less than 12 months"", ""$10,000"": ""Applied the 50% discount and then halved again"", ""$30,000"": ""Applied a 25% discount as if a partial concession applied""}","{""formula"": ""gain"", ""params"": {""gain"": 40000, ""discount_rate"": 0.5}, ""expected"": 40000.0}"
Q100,GST,Net GST = GST on taxable sales minus GST credits,GST,2024-25,medium,"[""GST Act 1999 s 7-5"", ""GST Act 1999 s 17-5"", ""GST Act 1999 s 9-70""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/how-gst-works,"Ferndale Pty Ltd is registered for GST and reports on a quarterly basis. For the quarter it has GST-inclusive taxable sales of $154,000 and GST-free sales (basic food) of $22,000. It also has $66,000 of GST-inclusive creditable business purchases. The GST fraction is 1/11.

What is Ferndale Pty Ltd's net GST payable for the quarter?

A. $10,000
B. $20,000
C. $8,000
D. $14,000","$10,000","$20,000","$8,000","$14,000",C,"$8,000",8000.0,AUD,"GST on taxable sales = $154,000 x 1/11 = $14,000 (GST-free sales carry no GST) → GST credits on purchases = $66,000 x 1/11 = $6,000 → Net GST payable = GST on sales - GST credits = $14,000 - $6,000 = $8,000","{""$10,000"": ""Included GST-free sales in the GST-on-sales calculation, overstating GST collected"", ""$20,000"": ""Added the GST credits to the GST on sales instead of subtracting them"", ""$8,000"": ""Correct answer"", ""$14,000"": ""Reported GST on sales only, forgetting to subtract the GST credits on purchases""}","{""formula"": ""round(taxable_sales * gst_fraction - creditable_purchases * gst_fraction, 2)"", ""params"": {""taxable_sales"": 154000, ""gst_free_sales"": 22000, ""creditable_purchases"": 66000, ""gst_fraction"": 0.09090909090909091}, ""expected"": 8000.0}"
Q101,FBT,Board fringe benefit – taxable value of board meals,Fringe benefits tax,2025-26,easy,"[""FBTAA 1986 s 35"", ""FBTAA 1986 s 36"", ""FBTAA 1986 s 37""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2026-instructions/item-23-fringe-benefit-categories-for-fbt-return-2026,"Highmoor Station Pty Ltd provides board fringe benefits valued at $18,250 to its employees for the FBT year ending 31 March 2026 (the taxable value of a board fringe benefit is $2 per meal per person). The employer does not require employees to make any contribution towards their board meals and accommodation, and the employees would not have been entitled to an income tax deduction had they paid for their meals.

What is the taxable value of the board fringe benefits for the FBT year ending 31 March 2026?

A. $34,434.10
B. $9,125.00
C. $8,577.50
D. $18,250.00","$34,434.10","$9,125.00","$8,577.50","$18,250.00",D,"$18,250.00",18250.0,AUD,"Taxable value of a board fringe benefit is $2 per meal per person ($1 if under 12), reduced by any employee contribution → Gross taxable value of the board fringe benefits for the year = 18,250 → Employee contribution = 0 → Otherwise deductible reduction = 0 (the meals would not have been deductible to the employees) → Taxable value = 18,250 - 0 - 0 = 18,250","{""$34,434.10"": ""Grossed up the board taxable value by the Type 2 factor instead of reporting the pre-gross-up value"", ""$9,125.00"": ""Wrongly halved the value as if the $1 under-12 child rate applied to everyone"", ""$8,577.50"": ""Reported the FBT payable (47% of the value) instead of the taxable value"", ""$18,250.00"": ""Correct answer""}","{""formula"": ""gross_taxable_value - employee_contribution - reductions"", ""params"": {""gross_taxable_value"": 18250, ""employee_contribution"": 0, ""reductions"": 0}, ""expected"": 18250.0}"
Q102,FBT,Employee contribution exceeding the taxable value – floored at zero,Fringe benefits tax,2024-25,medium,"[""FBTAA 1986 s 9"", ""FBTAA 1986 s 23""]",https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/exemptions-concessions-and-other-ways-to-reduce-fbt/reducing-your-fbt-liability,"Eastgate Pty Ltd provides an expense payment fringe benefit to its employee, Hiro, with a taxable value (before any contribution) of $3,000. Under the salary arrangement Hiro pays the employer an after-tax employee contribution of $3,200 towards the cost of the benefit. The employer includes the contribution in its assessable income.

What is the taxable value of the fringe benefit after the employee contribution?

A. -$200
B. $6,200
C. $3,000
D. $0",-$200,"$6,200","$3,000",$0,D,$0,0.0,AUD,"Taxable value before contribution = $3,000 → Employee contribution = $3,200 → An employee contribution reduces the taxable value, but the taxable value cannot go below zero → Taxable value = max($3,000 - $3,200, 0) = $0","{""-$200"": ""Subtracted the contribution without flooring at zero, producing a negative taxable value of -$200"", ""$6,200"": ""Added the contribution to the taxable value instead of subtracting it"", ""$3,000"": ""Ignored the employee contribution and left the taxable value at $3,000"", ""$0"": ""Correct answer""}","{""formula"": ""max(taxable_value - employee_contribution, 0)"", ""params"": {""taxable_value"": 3000, ""employee_contribution"": 3200}, ""expected"": 0.0}"
Q103,GST,GST adjustment on cancelling registration – 1/11 x market value x business-use %,GST,2016-17,medium,"[""GST Act Div 138"", ""GST Act s 138-5""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/rules-for-specific-transactions/business-asset-transactions/gst-and-the-disposal-of-capital-assets,"Mr Okafor ceases business and cancels his GST registration. He still holds a motor vehicle that has a market value of $33,000, on which he had claimed GST credits in an earlier activity statement. The vehicle is used 60% for business purposes. On cancelling registration he must make an increasing adjustment for the GST attributable to the business-use portion of the asset still on hand.

What is the GST payable (increasing adjustment) by Mr Okafor on cancelling his GST registration?

A. $1,980
B. $3,000
C. $1,200
D. $1,800","$1,980","$3,000","$1,200","$1,800",D,"$1,800",1800.0,AUD,"GST adjustment on cancellation = 1/11 x market value x percentage of business use → = (1/11) x 33,000 x 60% → = 3,000 x 0.60 = 1,800","{""$1,980"": ""Took 10% of the market value instead of 1/11 before applying business use"", ""$3,000"": ""Ignored the 60% business-use proportion and used the full 1/11 of market value"", ""$1,200"": ""Used the 40% private-use proportion instead of the 60% business-use proportion"", ""$1,800"": ""Correct answer""}","{""formula"": ""(1 / 11) * market_value * business_use"", ""params"": {""market_value"": 33000, ""business_use"": 0.6}, ""expected"": 1800.0}"
Q104,Rental property,Net rental income or loss (gross rent minus total expenses),Income tax (rental),2024-25,easy,"[""ITAA 1997 s 8-1"", ""ITAA 1997 s 6-5""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/worksheet-work-out-your-net-rental-income-or-loss,"A rental property owner completes the ATO rental property worksheet. The gross rent is $14,200 (rental income $13,100 plus other rental-related income $1,100). The total of all deductible rental expenses for the year (advertising, body corporate, borrowing expenses, cleaning, council rates, decline in value, gardening, insurance, interest on loans, land tax, legal, pest control, agent fees, repairs, capital works, stationery, travel, water and sundry) is $27,850.

What is the net rental income or loss for the year?

A. $42,050
B. -$13,650
C. -$19,350
D. $13,650","$42,050","-$13,650","-$19,350","$13,650",B,"-$13,650",-13650.0,AUD,"Gross rent = rental income 13,100 + other rental-related income 1,100 = 14,200 → Total expenses = 27,850 → Net rental income or loss = 14,200 - 27,850 = -13,650 (a net rental loss)","{""$42,050"": ""Added rent and expenses instead of subtracting expenses from rent"", ""-$13,650"": ""Correct answer"", ""-$19,350"": ""Forgot to include the $800 of other rental-related income in gross rent"", ""$13,650"": ""Subtracted in the wrong order, reporting the loss as a positive amount""}","{""formula"": ""gross_rent - total_expenses"", ""params"": {""gross_rent"": 14200, ""total_expenses"": 27850}, ""expected"": -13650.0}"
Q105,Superannuation,Non-concessional contributions cap – bring-forward (3x annual cap),Superannuation (non-concessional contributions cap),2026-27,medium,"[""ITAA 1997 s 292-85"", ""ITAA 1997 s 292-85(3)""]",https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/non-concessional-contributions-cap,"From 1 July 2026 the annual non-concessional contributions cap is $130,000. Genevieve, who is under 75 with a total super balance below the relevant limit, triggers the 3-year bring-forward arrangement in 2026-27. Once triggered, the bring-forward cap is locked to the first-year cap and any later indexation (for example to $140,000 in years 2 and 3) does not apply.

What is Genevieve's total non-concessional contributions bring-forward cap over the 3-year period?

A. $390,000
B. $260,000
C. $410,000
D. $130,000","$390,000","$260,000","$410,000","$130,000",A,"$390,000",390000.0,AUD,"Annual non-concessional cap in the first (trigger) year = $130,000 (cap kept fixed from the base example) → The bring-forward arrangement allows 3 times the first-year annual cap → Bring-forward cap = 130,000 x 3 = $390,000 (indexation in years 2 and 3 does not change this)","{""$390,000"": ""Correct answer"", ""$260,000"": ""Brought forward only 1 extra year (2x cap) instead of 2 extra years (3x cap)"", ""$410,000"": ""Wrongly indexed years 2 and 3 to $140,000, giving $410,000 (the cap is locked to the first-year amount)"", ""$130,000"": ""Used the single annual cap without applying the bring-forward arrangement""}","{""formula"": ""annual_cap * 3"", ""params"": {""annual_cap"": 130000, ""indexed_cap"": 140000}, ""expected"": 390000.0}"
Q106,FBT,Car fringe benefit – operating cost method (no employee contribution),Fringe benefits tax (car fringe benefits),2016-17,easy,"[""FBTAA 1986 s 10"", ""FBTAA 1986 s 10(2)""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2017-completing-your-return/fringe-benefit-categories/b-cars-using-the-operating-cost-method,"Coral Coast Plumbing has a car with $14,000 in total operating costs for the year ending 31 March 2017. The employee who uses the car, Hugo Marsden, maintains a logbook. Based on the logbook and other usage patterns, the employer estimates the percentage of private use to be 40% (and therefore the business use percentage is 60%). Hugo has not made any contributions during the year.

What is the taxable value of the car fringe benefit using the operating cost method for the FBT year ending 31 March 2017?

A. $8,400
B. $5,600
C. $2,800
D. $14,000","$8,400","$5,600","$2,800","$14,000",B,"$5,600",5600.0,AUD,"Operating cost method: taxable value = total operating costs x private use % - employee contribution → Equivalently = total operating costs x (1 - business use %) - employee contribution → = 14,000 x 40% - 0 = 5,600","{""$8,400"": ""Applied the 60% business use percentage instead of the 40% private use percentage"", ""$5,600"": ""Correct answer"", ""$2,800"": ""Wrongly halved the taxable value as if a 50% discount applied"", ""$14,000"": ""Used the full operating costs without applying the private use percentage""}","{""formula"": ""operating_costs * private_use_percent"", ""params"": {""operating_costs"": 14000, ""private_use_percent"": 0.4, ""business_use_percent"": 0.6, ""employee_contribution"": 0}, ""expected"": 5600.0}"
Q107,Superannuation,Low income super tax offset (LISTO),Superannuation (low income super tax offset),2022-23,easy,"[""Superannuation (Government Co-contribution for Low Income Earners) Act 2003 s 12B"", ""Superannuation (Government Co-contribution for Low Income Earners) Act 2003 s 12C""]",https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/government-super-contributions/low-income-super-tax-offset,"Nadia earns $33,000 a year as a childcare assistant. In 2022-23 her employer makes a super guarantee concessional contribution of $3,600 into her super fund. She lodges a tax return with $1,000 of deductions, giving an adjusted taxable income of $32,000, which is under the $37,000 LISTO income limit, and she meets all other eligibility criteria. LISTO is 15% of concessional contributions, capped at $500.

What low income super tax offset (LISTO) is paid into Nadia's super fund?

A. $360
B. $270
C. $540
D. $500",$360,$270,$540,$500,D,$500,500.0,AUD,"Concessional (before-tax) contributions = $3,600 → LISTO = 15% x 3,600 = $540 → Capped at the $500 maximum (same cap as the base example), so Nadia receives $500","{""$360"": ""Used a 10% rate instead of the 15% LISTO rate"", ""$270"": ""Halved the offset as if the rate were 7.5%"", ""$540"": ""Applied 15% without capping at the $500 maximum"", ""$500"": ""Correct answer""}","{""formula"": ""min(concessional * listo_rate, max_listo)"", ""params"": {""concessional"": 3600, ""listo_rate"": 0.15, ""max_listo"": 500}, ""expected"": 500.0}"
Q108,CGT,Main residence partial exemption – days-based apportionment,Income tax (CGT),2013-14,medium,"[""ITAA 1997 s 118-185"", ""ITAA 1997 s 104-10""]",https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-guide-2014/part-a-about-capital-gains-tax/real-estate-and-main-residence/partial-exemption,"Bridget bought a house on 1 hectare of land under a contract settled on 1 July 1991 and moved in immediately. On 1 July 1995 she moved out and rented out the house, and did not choose to treat it as her main residence for that period. A contract for the sale was entered into on 1 July 2013 (settled 31 August 2013) and Bridget made a total capital gain of $150,000. Over her ownership period the dwelling was not her main residence for 5,840 days out of a total of 7,300 days.

What is the taxable portion of Bridget's capital gain under the main residence partial exemption?

A. $120,000.00
B. $30,000.00
C. $149,999.20
D. $60,000.00","$120,000.00","$30,000.00","$149,999.20","$60,000.00",A,"$120,000.00",120000.0,AUD,"Partial exemption formula: total capital gain x (non-main-residence days / total ownership days) → Taxable portion = 150,000 x (5,840 / 7,300) → = 150,000 x 0.80000 = 120,000","{""$120,000.00"": ""Correct answer"", ""$30,000.00"": ""Used main-residence days in the numerator instead of non-main-residence days"", ""$149,999.20"": ""Subtracted the day ratio from the gain instead of multiplying"", ""$60,000.00"": ""Wrongly applied a 50% CGT discount to the apportioned gain in this example""}","{""formula"": ""total_gain * non_main_days / total_days"", ""params"": {""total_gain"": 150000, ""non_main_days"": 5840, ""total_days"": 7300}, ""expected"": 120000.0}"
Q109,Depreciation,Low-value pool – closing balance,"Income tax (capital allowances, Div 40 low-value pool)",2019-20,medium,"[""ITAA 1997 s 40-445"", ""ITAA 1997 s 40-440""]",https://www.ato.gov.au/forms-and-instructions/depreciating-assets-guide-2020/low-value-pools,"Following on from Priya's low-value pool example: the closing pool balance for 2018-19 was $8,000, the taxable-use cost of the scanner added in 2019-20 was $728, and the decline in value of the pool for 2019-20 was $3,137. The closing balance equals the prior closing balance plus assets added during the year, less the decline in value for the year.

What is the closing balance of Priya's low-value pool for 2019-20 (ignoring GST)?

A. $5,591
B. $8,728
C. $4,863
D. $4,135","$5,591","$8,728","$4,863","$4,135",A,"$5,591",5591.0,AUD,"Closing pool balance for 2018-19 = 8,000 → plus taxable-use cost of the scanner added in 2019-20 = 728 → less decline in value of the pool for 2019-20 = 3,137 → Closing balance = 8,000 + 728 - 3,137 = 5,591","{""$5,591"": ""Correct answer"", ""$8,728"": ""Forgot to subtract the year's decline in value"", ""$4,863"": ""Forgot to add the cost of the scanner allocated during the year"", ""$4,135"": ""Subtracted the new asset cost instead of adding it""}","{""formula"": ""prior_closing + new_cost_taxable - decline"", ""params"": {""prior_closing"": 8000, ""new_cost_taxable"": 728, ""decline"": 3137, ""pool_rate"": 0.375}, ""expected"": 5591.0}"
Q110,Study and training loans,Repayment income build-up (taxable income + RFB + TNIL + RSC + exempt foreign income),Study and training support loan – repayment income,2025-26,easy,"[""Higher Education Support Act 2003 s 154-5"", ""ITAA 1997 s 995-1 (repayment income)""]",https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds,"In the 2025-26 financial year, Marcus has a taxable income of $61,300, total reportable fringe benefits of $6,200, a total net investment loss of $2,400, reportable super contributions of $18,000, and exempt foreign employment income of $3,100.

What is Marcus's repayment income for 2025-26 (the amount used to work out his compulsory study loan repayment)?

A. $91,000
B. $61,300
C. $84,800
D. $88,600","$91,000","$61,300","$84,800","$88,600",A,"$91,000",91000.0,AUD,"Repayment income = taxable income + reportable fringe benefits + total net investment loss + reportable super contributions + exempt foreign employment income → = 61,300 + 6,200 + 2,400 + 18,000 + 3,100 → = 91,000","{""$91,000"": ""Correct answer"", ""$61,300"": ""Used taxable income alone as the repayment income"", ""$84,800"": ""Omitted reportable fringe benefits from the repayment income build-up"", ""$88,600"": ""Omitted the total net investment loss from the build-up""}","{""formula"": ""taxable_income + reportable_fringe_benefits + total_net_investment_loss + reportable_super + exempt_foreign_income"", ""params"": {""taxable_income"": 61300, ""reportable_fringe_benefits"": 6200, ""total_net_investment_loss"": 2400, ""reportable_super"": 18000, ""exempt_foreign_income"": 3100}, ""expected"": 91000.0}"
Q111,FBT,"Property fringe benefit – in-house, 75% of notional value (manufacturing seconds)",Fringe benefits tax,2024-25,medium,"[""FBTAA 1986 s 42""]",https://www.ato.gov.au/law/view/document?DocID=SAV/FBTGEMP/00018&PiT=99991231235958,"Baseline Sports Manufacturing makes tennis racquets for sale by wholesale. Some racquets are damaged during manufacturing. Instead of the normal arm's length selling price (including GST) of $80, the damaged racquets have a market (notional) value of $48 each. An employee, Reuben Castle, buys a damaged racquet for $8. Because the racquet is similar but not identical to goods sold in the ordinary course of business, the taxable value is 75% of the notional value, reduced by the employee contribution.

What is the taxable value of this in-house property fringe benefit?

A. $40
B. $36
C. $28
D. $52",$40,$36,$28,$52,C,$28,28.0,AUD,"Goods similar (but not identical) to those sold in the ordinary course of business: taxable value = 75% of the notional (market) value, reduced by any employee contribution → Notional value of the damaged racquet = 48 → 75% x 48 = 36.00 → Reduce by the employee contribution: 36.00 - 8 = 28.00","{""$40"": ""Forgot to apply the 75% rule to the notional value"", ""$36"": ""Forgot to deduct the $8 employee contribution"", ""$28"": ""Correct answer"", ""$52"": ""Used the $80 normal arm's length price instead of the $48 notional value of the damaged goods""}","{""formula"": ""notional_value * in_house_rate - employee_contribution"", ""params"": {""notional_value"": 48, ""arms_length_price"": 80, ""in_house_rate"": 0.75, ""employee_contribution"": 8}, ""expected"": 28.0}"
Q112,CGT,"Net capital loss carried forward – no discount, reported as a loss",Income tax (CGT),2024-25,medium,"[""ITAA 1997 s 102-10"", ""ITAA 1997 s 102-15"", ""ITAA 1997 s 102-5""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/how-to-calculate-your-cgt,"In 2024-25 Hana makes a discount-eligible capital gain of $8,000 on shares held for 4 years. In the same year she makes a $15,000 capital loss on an investment property. She has no prior-year capital losses. Following the ATO steps, capital losses are subtracted from capital gains (step 5) before any discount is applied (step 7); if the result is below zero it is a net capital loss that is carried forward to future years and cannot be discounted.

What net capital loss does Hana carry forward to later income years from 2024-25?

A. $15,000
B. $11,000
C. $3,500
D. $7,000","$15,000","$11,000","$3,500","$7,000",D,"$7,000",7000.0,AUD,"Subtract capital losses from capital gains BEFORE the discount: 8,000 - 15,000 = -7,000 → The result is below zero, so there is no net capital gain and the 50% discount is never applied → The $7,000 net capital loss is carried forward to future income years","{""$15,000"": ""Carried forward the gross property loss and ignored the offsetting share gain"", ""$11,000"": ""Trap: discounted the $8,000 gain by 50% before offsetting, inflating the carried-forward loss to 11,000"", ""$3,500"": ""Applied the 50% discount to the net capital loss (losses are never discounted)"", ""$7,000"": ""Correct answer""}","{""formula"": ""property_loss - share_gain"", ""params"": {""share_gain"": 8000, ""property_loss"": 15000, ""discount_rate"": 0.5}, ""expected"": 7000.0}"
Q113,GST,Apportionment for partly creditable purpose – car credit x business-use %,GST,2025-26,medium,"[""GST Act s 11-30"", ""GST Act s 69-10""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/motor-vehicle-and-transport/gst-and-motor-vehicles/purchasing-a-motor-vehicle,"Nadia purchases the same new non fuel-efficient car for $84,500 on 12 July 2025, where the 2025-26 car limit is $69,674 and the maximum GST credit for 100% business use would be $6,334 (1/11 x $69,674). However, Nadia plans to use the car only 40% in carrying on her business, so she can claim only the business-use proportion of the maximum GST credit.

What GST credit can Nadia claim if she uses the car 40% for business?

A. $6,334.00
B. $2,786.96
C. $2,533.60
D. $230.33","$6,334.00","$2,786.96","$2,533.60",$230.33,C,"$2,533.60",2533.6,AUD,"Maximum GST credit (100% business use) = 69,674 / 11 = 6,334 → Nadia uses the car 40% for business, so she claims only the business-use proportion → GST credit = 6,334 x 40% = 2,534","{""$6,334.00"": ""Claimed the full $6,334 without apportioning for 40% business use"", ""$2,786.96"": ""Took 10% of the car limit instead of 1/11 before applying the 40% business use"", ""$2,533.60"": ""Correct answer"", ""$230.33"": ""Divided by 11 twice when applying the cap and the credit""}","{""formula"": ""car_limit / 11 * business_use"", ""params"": {""car_limit"": 69674, ""business_use"": 0.4}, ""expected"": 2533.6}"
Q114,Superannuation,Super guarantee – ordinary time earnings x SG rate,Superannuation (super guarantee),2025-26,easy,"[""Superannuation Guarantee (Administration) Act 1992 s 19"", ""Superannuation Guarantee (Administration) Act 1992 s 23""]",https://www.ato.gov.au/businesses-and-organisations/super-for-employers/super-guarantee-employer-obligations-online-course/module-4-calculating-super-guarantee,"During the first quarter of 2025-26, Imogen's ordinary time earnings (OTE) are $9,500. The super guarantee rate for 2025-26 is 12%.

How much super guarantee must Imogen's employer contribute for the quarter?

A. $9,500.00
B. $1,140.00
C. $1,045.00
D. $1,092.50","$9,500.00","$1,140.00","$1,045.00","$1,092.50",B,"$1,140.00",1140.0,AUD,"Ordinary time earnings for the quarter = $9,500 → Super guarantee rate for 2025-26 = 12% (rate kept fixed from the base example) → SG = 9,500 x 12% = $1,140","{""$9,500.00"": ""Forgot to apply the SG rate to ordinary time earnings"", ""$1,140.00"": ""Correct answer"", ""$1,045.00"": ""Used the 2023-24 SG rate of 11% instead of 12%"", ""$1,092.50"": ""Used the 2024-25 SG rate of 11.5% instead of 12%""}","{""formula"": ""ote * sg_rate"", ""params"": {""ote"": 9500, ""sg_rate"": 0.12, ""old_rate"": 0.115}, ""expected"": 1140.0}"
Q115,Employment,PAYG instalments – varying the instalment amount (4th quarter balance),Income tax (PAYG instalments),2024-25,medium,"[""TAA 1953 Sch 1 s 45-110"", ""TAA 1953 Sch 1 s 45-205""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/payg-instalments/how-to-vary-your-payg-instalments,"Continuing Devon's example: his estimated tax on instalment income for the full year is $24,000. He paid $8,000 in the first quarter, $8,000 in the second quarter, and his varied third-quarter instalment was $2,000. In the fourth quarter he must pay 100% of his estimated tax for the year minus the amounts paid in the first three quarters.

What PAYG instalment amount does Devon pay in the fourth quarter?

A. $8,000
B. $0
C. $6,000
D. $18,000","$8,000",$0,"$6,000","$18,000",C,"$6,000",6000.0,AUD,"Fourth-quarter instalment = 100% of estimated tax − amounts paid in Q1, Q2 and Q3 → = $24,000 − ($8,000 + $8,000 + $2,000) → = $24,000 − $18,000 = $6,000","{""$8,000"": ""Forgot to subtract the third-quarter instalment of $2,000"", ""$0"": ""Applied the 75% third-quarter proportion instead of 100% in the final quarter"", ""$6,000"": ""Correct answer"", ""$18,000"": ""Added up the instalments already paid instead of working out the remaining balance""}","{""formula"": ""est_tax - (q1 + q2 + q3)"", ""params"": {""est_tax"": 24000, ""q1"": 8000, ""q2"": 8000, ""q3"": 2000}, ""expected"": 6000.0}"
Q116,FBT,"Grossed-up taxable value then FBT payable (Type 1, GST credit)",Fringe benefits tax,2024-25,medium,"[""FBTAA 1986 s 5B"", ""FBTAA 1986 s 136(1)""]",https://www.ato.gov.au/tax-rates-and-codes/fringe-benefits-tax-rates-and-thresholds,"Westfold Pty Ltd provides fringe benefits to its employees with a total taxable value of $5,000 for the FBT year ending 31 March 2025. The employer was entitled to GST credits on all of these benefits, so they are Type 1 benefits. The FBT rate is 47% and the Type 1 gross-up rate is 2.0802.

What is the FBT payable on these Type 1 benefits?

A. $2,350.00
B. $4,888.47
C. $10,401.00
D. $4,433.98","$2,350.00","$4,888.47","$10,401.00","$4,433.98",B,"$4,888.47",4888.47,AUD,"Type 1 benefits (GST credit available) are grossed up at 2.0802 → Grossed-up taxable value = $5,000 x 2.0802 = $10,401.00 → FBT payable = grossed-up value x 47% = $10,401.00 x 0.47 = $4,888.47","{""$2,350.00"": ""Applied 47% FBT to the taxable value without grossing it up first"", ""$4,888.47"": ""Correct answer"", ""$10,401.00"": ""Reported the grossed-up taxable value as the FBT payable, forgetting to apply the 47% rate"", ""$4,433.98"": ""Used the Type 2 gross-up rate (1.8868) although GST credits were available, understating FBT""}","{""formula"": ""round(taxable_value * gross_up_t1 * fbt_rate, 2)"", ""params"": {""taxable_value"": 5000, ""gross_up_t1"": 2.0802, ""gross_up_t2"": 1.8868, ""fbt_rate"": 0.47}, ""expected"": 4888.47}"
Q117,Income tests,"Division 293 tax – 15% on the lesser of contributions and the excess over $250,000",Income tax – Division 293 tax,2025-26,medium,"[""ITAA 1997 Division 293"", ""Taxation (Division 293 Tax) (Imposition) Act 2012""]",https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/division-293-tax-on-concessional-contributions-by-high-income-earners,"Petra's Division 293 income is $244,000 and her Division 293 super contributions are $12,000, a combined total of $256,000. Division 293 tax is 15% of the lesser of the super contributions or the amount of the combined total above the $250,000 threshold.

What is Petra's Division 293 tax payable?

A. $38,400
B. $1,800
C. $900
D. $36,600","$38,400","$1,800",$900,"$36,600",C,$900,900.0,AUD,"Combined Division 293 income and contributions = 244,000 + 12,000 = 256,000, which is above the $250,000 threshold (same side as the base example) → Amount above the $250,000 threshold = 256,000 - 250,000 = 6,000 → Taxable contributions = lesser of contributions ($12,000) and the excess ($6,000) = 6,000 (the excess is the lesser, as in the base example) → Division 293 tax = 6,000 x 15% = 900","{""$38,400"": ""Applied 15% to the full combined total of $256,000"", ""$1,800"": ""Taxed all $12,000 of super contributions instead of the lesser amount"", ""$900"": ""Correct answer"", ""$36,600"": ""Applied 15% to the Division 293 income figure""}","{""formula"": ""min(contributions, (div293_income + contributions) - threshold) * rate"", ""params"": {""div293_income"": 244000, ""contributions"": 12000, ""threshold"": 250000, ""rate"": 0.15}, ""expected"": 900.0}"
Q118,Rental property,"Apportionment of travel expenses (commercial property, mixed business/holiday)",Income tax (rental),2024-25,medium,"[""ITAA 1997 s 8-1"", ""ITAA 1997 s 26-31"", ""LCR 2018/7""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses,"Felix and Marguerite own a residential rental property and a commercial rental property in a Queensland resort town. They travel from Perth mainly for a holiday but also to inspect both properties, spending $1,300 on airfares and $2,200 on accommodation (including meals). They also spent $80 on taxi fares to/from the commercial property and $120 on taxi fares to/from the residential property. They spent 1 day on the commercial property, 1 day on the residential property, and 9 days on holiday (11 days total). Airfares and the residential-property taxi fare are not deductible; the $80 commercial-property taxi fare is deductible; and a reasonable 1-day-out-of-11 share of accommodation is deductible for the commercial property.

What total travel expenses can Felix and Marguerite claim (combined)?

A. $380
B. $480
C. $280
D. $3,380",$380,$480,$280,"$3,380",C,$280,280.0,AUD,"Deductible accommodation = 2,200 x (1 day / 11 days) = 200 → Add the deductible commercial-property taxi fare of 80 → Total deductible travel = 80 + 200 = 280 (airfares and the residential-property taxi are not deductible)","{""$380"": ""Also claimed the $100 residential-property taxi fare, which is not deductible"", ""$480"": ""Counted both the commercial and residential property days (2/10) for the accommodation, but the residential rental travel is not deductible"", ""$280"": ""Correct answer"", ""$3,380"": ""Claimed the full accommodation plus the non-deductible airfares and residential taxi""}","{""formula"": ""commercial_taxi + accommodation * commercial_days / total_days"", ""params"": {""commercial_taxi"": 80, ""accommodation"": 2200, ""commercial_days"": 1, ""total_days"": 11}, ""expected"": 280.0}"
Q119,Study and training loans,"Compulsory repayment – 2025-26 marginal 15c band ($67,001–$125,000)",Study and training support loan – compulsory repayment,2025-26,easy,"[""Higher Education Support Act 2003 s 154-1"", ""Higher Education Support Act 2003 s 154-20""]",https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds,"In the 2025-26 financial year Marcus's repayment income is $92,840. From 2025-26, compulsory repayments use marginal rates: nil up to $67,000, then 15c for each $1 of repayment income over $67,000 (up to $125,000).

What is Marcus's compulsory study and training loan repayment for 2025-26?

A. $25,840
B. $3,876
C. $13,926
D. $2,584","$25,840","$3,876","$13,926","$2,584",B,"$3,876",3876.0,AUD,"Marcus's repayment income $92,840 is above $67,000 but below $125,000, so it stays within the same 15c-in-the-dollar marginal band as the base example → Income above the threshold = 92,840 - 67,000 = 25,840 → Compulsory repayment = 25,840 x 15% = 3,876.00","{""$25,840"": ""Reported the income above the threshold without multiplying by the 15% rate"", ""$3,876"": ""Correct answer"", ""$13,926"": ""Applied the 15% rate to the whole repayment income instead of only the amount over $67,000"", ""$2,584"": ""Used the wrong band rate (10% top-band rate) instead of 15%""}","{""formula"": ""(repayment_income - threshold) * rate"", ""params"": {""repayment_income"": 92840, ""threshold"": 67000, ""rate"": 0.15}, ""expected"": 3876.0}"
Q120,GST,Input tax credit on a purchase – 1/11 of the GST-inclusive cost,GST,2017-18,easy,"[""GST Act s 11-20"", ""GST Act s 11-25""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/motor-vehicle-and-transport/motor-vehicle-incentive-payments/examples-working-out-the-gst,"Daniel is registered for GST and makes a creditable purchase of a 'Vello model' motor vehicle from Summit Auto in July 2017, for which he pays $45,100 (including GST) and receives a tax invoice. The vehicle is used solely in his business.

What GST credit (input tax credit) can Daniel claim on the vehicle he paid $45,100 for?

A. $3,758.33
B. $4,510.00
C. $372.73
D. $4,100.00","$3,758.33","$4,510.00",$372.73,"$4,100.00",D,"$4,100.00",4100.0,AUD,"Daniel made a creditable purchase and holds a tax invoice → The GST credit equals the GST included in the price = one eleventh of the GST-inclusive amount paid → GST credit = 45,100 / 11 = 4,100","{""$3,758.33"": ""Divided the price by the wrong divisor (12) instead of 11"", ""$4,510.00"": ""Took 10% of the GST-inclusive price instead of 1/11"", ""$372.73"": ""Divided the price by 11 twice"", ""$4,100.00"": ""Correct answer""}","{""formula"": ""amount_paid / 11"", ""params"": {""amount_paid"": 45100}, ""expected"": 4100.0}"
Q121,Division 7A & Company Tax,Maximum franking credit on a distribution – base rate entity (27.5% tax rate),Income tax (imputation),2019-20,medium,"[""ITAA 1997 s 202-60"", ""ITAA 1997 s 995-1""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/paying-dividends-and-other-distributions/allocating-franking-credits,"Coastline Composites is a base rate entity for the 2019-20 income year, so its corporate tax rate for imputation purposes is 27.5%. It wants to distribute $250,000 of profit to its shareholders. The maximum franking credit is the frankable distribution multiplied by (1 / applicable gross-up rate), where the gross-up rate = (100% - 27.5%) / 27.5% = 2.6364.

What is the maximum franking credit Coastline Composites can attach to the $250,000 distribution?

A. $107,144.39
B. $68,750.00
C. $94,826.28
D. $659,100.00","$107,144.39","$68,750.00","$94,826.28","$659,100.00",C,"$94,826.28",94826.28,AUD,"Corporate tax rate for imputation purposes = 27.5% (base rate entity) → Applicable gross-up rate = (100% - 27.5%) / 27.5% = 2.6364 → Maximum franking credit = 250,000 x (1 / 2.6364) = 94,826.28","{""$107,144.39"": ""Used the 30% gross-up rate (2.3333) instead of the base-rate-entity 27.5% rate (2.6364)"", ""$68,750.00"": ""Multiplied the distribution by the 27.5% tax rate directly instead of dividing by the gross-up rate"", ""$94,826.28"": ""Correct answer"", ""$659,100.00"": ""Multiplied by the gross-up rate instead of by its reciprocal (1 / gross-up rate)""}","{""formula"": ""distribution * (1 / gross_up_rate)"", ""params"": {""distribution"": 250000, ""gross_up_rate"": 2.6364}, ""expected"": 94826.28}"
Q122,CGT,Net capital loss carried forward applied before the discount – shares,Income tax (CGT),2012-13,medium,"[""ITAA 1997 s 102-5"", ""ITAA 1997 s 102-15"", ""ITAA 1997 s 115-100""]",https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-personal-investors-guide-2013/part-b-sale-of-shares-or-units/b2-worked-examples-for-shares-and-units,"Hiroshi bought 600 shares in WBN Ltd for $26,000 in November 1999 and sold them for $41,000 in March. As he bought the shares after 21 September 1999 he cannot use the indexation method, but as he owned them for more than 12 months he can use the discount method. He also has a net capital loss of $3,000 from an earlier income year that has not yet been applied against any capital gain.

What is Hiroshi's net capital gain on the shares after applying his carried-forward loss and the CGT discount?

A. $6,000
B. $12,000
C. $4,500
D. $7,500","$6,000","$12,000","$4,500","$7,500",A,"$6,000",6000.0,AUD,"Total capital gain = 41,000 - 26,000 = 15,000 → Deduct the prior-year net capital loss BEFORE the discount: 15,000 - 3,000 = 12,000 → Apply 50% CGT discount: 12,000 x 0.5 = 6,000","{""$6,000"": ""Correct answer"", ""$12,000"": ""Deducted the loss but forgot to apply the 50% discount"", ""$4,500"": ""Applied the discount before deducting the prior-year loss"", ""$7,500"": ""Ignored the carried-forward capital loss""}","{""formula"": ""(proceeds - cost_base - prior_loss) * discount_rate"", ""params"": {""proceeds"": 41000, ""cost_base"": 26000, ""prior_loss"": 3000, ""discount_rate"": 0.5}, ""expected"": 6000.0}"
Q123,Superannuation,Division 293 tax (high-income earners),Superannuation (Division 293 tax),2024-25,medium,"[""ITAA 1997 Div 293"", ""ITAA 1997 s 293-15"", ""ITAA 1997 s 293-20""]",https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/division-293-tax-on-concessional-contributions-by-high-income-earners,"Petra's Division 293 income is $246,000 and her Division 293 super contributions (low-tax concessional contributions) are $11,000, for a combined total of $257,000. The Division 293 threshold is $250,000 and the Division 293 tax rate is 15%. Division 293 tax applies to the lesser of the super contributions and the amount over the threshold.

What is Petra's Division 293 tax payable?

A. $7,000
B. $1,050
C. $1,650
D. $38,550","$7,000","$1,050","$1,650","$38,550",B,"$1,050",1050.0,AUD,"Combined income and contributions = 246,000 + 11,000 = $257,000, above the $250,000 threshold (same side as the base example) → Amount over the $250,000 threshold = 257,000 - 250,000 = $7,000 → Taxable contributions = lesser of contributions ($11,000) and the excess ($7,000) = $7,000 (the excess is the lesser, as in the base example) → Division 293 tax = 15% x 7,000 = $1,050","{""$7,000"": ""Reported the $7,000 excess itself as the tax instead of 15% of it"", ""$1,050"": ""Correct answer"", ""$1,650"": ""Applied 15% to all $11,000 of contributions, ignoring the lesser-of-the-excess rule"", ""$38,550"": ""Applied 15% to the whole combined $257,000, forgetting to subtract the $250,000 threshold""}","{""formula"": ""rate * min(d293_contributions, (d293_income + d293_contributions) - threshold)"", ""params"": {""d293_income"": 246000, ""d293_contributions"": 11000, ""threshold"": 250000, ""rate"": 0.15}, ""expected"": 1050.0}"
Q124,FBT,"Property fringe benefit – in-house, 75% of lowest retail price plus in-house concession",Fringe benefits tax,2025-26,medium,"[""FBTAA 1986 s 42"", ""FBTAA 1986 s 62""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2026-instructions/item-23-fringe-benefit-categories-for-fbt-return-2026,"Voltway Electrical, an electrical retailer, provides its employee Dominic Achterberg with a television it sells to the public for $2,400 and an air conditioner it sells to the public for $1,800 during the FBT year ending 31 March 2026. These are the lowest selling prices, including GST. The items are in-house property fringe benefits and are not provided under a salary packaging arrangement. Dominic pays a total of $450 for the items. The employer qualifies for the in-house benefits concession (reduction) of up to $1,000 per employee per year. The goods are not used for work purposes.

What is the taxable value of the in-house property fringe benefits after the 75% rule, employee contribution and in-house concession?

A. $2,150
B. $1,700
C. $2,750
D. $2,700","$2,150","$1,700","$2,750","$2,700",B,"$1,700",1700.0,AUD,"In-house property fringe benefit (not salary packaged): taxable value = 75% of the lowest public selling price → Gross taxable value = (2,400 + 1,800) x 75% = 3,150 → Reduce by the employee contribution: 3,150 - 450 → Reduce by the in-house benefits concession of up to $1,000 per employee per year: - 1,000 → Taxable value = 3,150 - 450 - 1,000 = 1,700","{""$2,150"": ""Forgot to deduct the $450 employee contribution"", ""$1,700"": ""Correct answer"", ""$2,750"": ""Used the full selling price instead of 75% of it"", ""$2,700"": ""Forgot to apply the $1,000 in-house benefits concession""}","{""formula"": ""(tv_price + aircon_price) * in_house_rate - employee_contribution - concession"", ""params"": {""tv_price"": 2400, ""aircon_price"": 1800, ""in_house_rate"": 0.75, ""employee_contribution"": 450, ""concession"": 1000}, ""expected"": 1700.0}"
Q125,FBT,Loan fringe benefit – otherwise deductible rule (rate set without regard to use),Fringe benefits tax,2016-17,hard,"[""FBTAA 1986 s 16"", ""FBTAA 1986 s 18"", ""FBTAA 1986 s 19""]",https://www.ato.gov.au/law/view/document?DocID=SAV/FBTGEMP/00009&PiT=99991231235958,"On 1 April 2016 Tasman Freight Co gives its employee Garrett Lindqvist an $80,000 loan at 3% for the whole FBT year, with no principal repayments required. The 3% rate is set without regard to how Garrett intends to use the loan. Garrett applies 70% of the loan to interest-bearing investments and spends the remaining 30% on home improvements. The statutory interest rate is 5.65%.

What is the taxable value of the loan fringe benefit after applying the otherwise deductible rule?

A. -$1,044
B. $1,484
C. $2,120
D. $636","-$1,044","$1,484","$2,120",$636,D,$636,636.0,AUD,"Step 1 - Taxable value ignoring the otherwise deductible rule = (80,000 x 5.65%) - (80,000 x 3%) = 4,520 - 2,400 = 2,120 → Step 2 - Notional interest if the loan were interest-free = 80,000 x 5.65% = 4,520 → Step 3 - Hypothetical deductible amount = 4,520 x 70% business use = 3,164 → Step 4 - Actual deductible amount on interest charged = 2,400 x 70% = 1,680 → Step 5 - Reduction = 3,164 - 1,680 = 1,484 → Step 6 - Taxable value = 2,120 - 1,484 = 636","{""-$1,044"": ""Subtracted only the hypothetical deductible amount and forgot to add back the actual deductible amount"", ""$1,484"": ""Wrongly applied the 70% business percentage directly to the Step 1 taxable value"", ""$2,120"": ""Stopped at Step 1 and ignored the otherwise deductible reduction"", ""$636"": ""Correct answer""}","{""formula"": ""(loan * statutory_rate - loan * actual_rate) - ((loan * statutory_rate) * business_pct - (loan * actual_rate) * business_pct)"", ""params"": {""loan"": 80000, ""statutory_rate"": 0.0565, ""actual_rate"": 0.03, ""business_pct"": 0.7}, ""expected"": 636.0}"
Q126,FBT,Car fringe benefit – statutory formula method with employee contribution (pre-existing commitment rate),Fringe benefits tax (car fringe benefits),2016-17,medium,"[""FBTAA 1986 s 9"", ""FBTAA 1986 s 9(2)""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2017-completing-your-return/fringe-benefit-categories/a-cars-using-the-statutory-formula,"Ironbark Surveying Group has two cars with a reduced base value of $42,000 each. The employer entered into a contract with the employees on 1 March 2011 (a pre-existing commitment in place before 7.30pm AEST on 10 May 2011) to provide the cars for 7 years. Each car travelled 32,000 kilometres in the year ending 31 March 2017 and was available to the employees for private use for the whole year. Each employee who uses a car, including Naomi Castellano, made contributions of $1,500 for fuel during the year. Because of the pre-existing commitment, the transitional statutory percentage based on 25,000 to 40,000 kilometres travelled is 11%.

What is the taxable value of the car fringe benefit for each car for the FBT year ending 31 March 2017?

A. $3,120
B. $6,900
C. $6,120
D. $4,620","$3,120","$6,900","$6,120","$4,620",A,"$3,120",3120.0,AUD,"Pre-existing commitment exists, so the transitional statutory percentage applies: 25,000 to 40,000 km travelled = 11% → Car available for the whole FBT year, so no days apportionment is needed → Taxable value = (base value x statutory rate) - employee contribution = (42,000 x 0.11) - 1,500 → = 4,620 - 1,500 = 3,120","{""$3,120"": ""Correct answer"", ""$6,900"": ""Used the flat 20% rate instead of the 11% pre-existing-commitment transitional rate"", ""$6,120"": ""Added the employee contribution instead of subtracting it"", ""$4,620"": ""Forgot to subtract the $1,500 employee (fuel) contribution""}","{""formula"": ""base_value * statutory_rate - employee_contribution"", ""params"": {""base_value"": 42000, ""statutory_rate"": 0.11, ""employee_contribution"": 1500}, ""expected"": 3120.0}"
Q127,Depreciation,Decline in value denied – asset used 100% privately (no taxable use),"Income tax (capital allowances, Div 40)",2024-25,medium,"[""ITAA 1997 s 40-25"", ""ITAA 1997 s 40-25(2)""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/rental-expenses/depreciating-assets-in-rental-properties,"Grace owns a holiday house that she uses entirely for her own private holidays. It is never rented out and is never genuinely available for rent. During 2024-25 she buys a new $4,000 dishwasher and installs it in the holiday house. Although the decline in value of a depreciating asset starts when it is first used or installed ready for use, the deduction must be reduced for any private use – and here the use is 100% private (0% taxable use).

What decline-in-value deduction can Grace claim for the dishwasher in 2024-25?

A. $0
B. $4,000
C. $800
D. $400",$0,"$4,000",$800,$400,A,$0,0.0,AUD,"The dishwasher is used 0% for a taxable purpose (100% private holiday use) → Decline in value must be reduced for private use; with 0% taxable use the deductible amount is nil → Full-year diminishing value would be 4,000 x (2.0/10) = 800, but x 0% taxable use = 0 → Deduction = 0","{""$0"": ""Correct answer"", ""$4,000"": ""Claimed the whole $4,000 cost as an immediate deduction (asset is over $300 and wholly private)"", ""$800"": ""Trap: claimed the full diminishing value deduction (800) ignoring that the asset is used 100% privately"", ""$400"": ""Claimed a prime-cost deduction (400) ignoring the 100% private use""}","{""formula"": ""cost * (dv_factor / effective_life) * taxable_pct"", ""params"": {""cost"": 4000, ""taxable_pct"": 0.0, ""effective_life"": 10, ""dv_factor"": 2.0}, ""expected"": 0.0}"
Q128,Depreciation,Instant asset write-off – full cost equals the limit exactly (does not qualify),"Income tax (simplified depreciation, Div 328)",2024-25,hard,"[""ITAA 1997 s 328-180"", ""IT(TP)A 1997 s 328-180"", ""ITAA 1997 s 328-185""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off,"Marco is a sole trader (aggregated turnover under $10 million) using the simplified depreciation rules. On 10 October 2024 he buys a packaging machine for exactly $20,000 (GST-exclusive) and uses it 100% for his business. The instant asset write-off limit for 2024-25 is $20,000, and to qualify an asset's full cost must be LESS THAN the limit. Because the cost is not below the limit, the asset cannot be instantly written off; instead it is added to the small business pool, which deducts 15% of the cost in the first year.

What deduction can Marco claim for the packaging machine in 2024-25?

A. $20,000
B. $1,500
C. $6,000
D. $3,000","$20,000","$1,500","$6,000","$3,000",D,"$3,000",3000.0,AUD,"The instant asset write-off requires the asset's full cost to be LESS THAN $20,000 → The cost is exactly $20,000, which is not below the limit, so the immediate write-off is NOT available → The asset is allocated to the small business pool and deducted at 15% in the first year: 20,000 x 15% = 3,000","{""$20,000"": ""Trap: claimed the full $20,000 under the instant asset write-off, but at exactly the limit the cost is not 'less than' the limit so it does not qualify"", ""$1,500"": ""Halved the first-year pool deduction again"", ""$6,000"": ""Used the 30% ongoing pool rate instead of the 15% first-year (half-rate) pool rate"", ""$3,000"": ""Correct answer""}","{""formula"": ""cost * first_year_pool_rate"", ""params"": {""cost"": 20000, ""limit"": 20000, ""first_year_pool_rate"": 0.15, ""ongoing_pool_rate"": 0.3}, ""expected"": 3000.0}"
Q129,Study and training loans,"Compulsory repayment – 2025-26 band $125,001–$179,285 ($8,700 + 17c)",Study and training support loan – compulsory repayment,2025-26,medium,"[""Higher Education Support Act 2003 s 154-1"", ""Higher Education Support Act 2003 s 154-20""]",https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds,"In the 2025-26 financial year Declan has a taxable income of $134,200 and reportable super contributions of $16,320, giving a repayment income of $150,520. For 2025-26 the band from $125,001 to $179,285 is $8,700 plus 17c for each $1 of repayment income over $125,000.

What is Declan's compulsory study and training loan repayment for 2025-26?

A. $15,052.00
B. $4,338.40
C. $13,038.40
D. $34,288.40","$15,052.00","$4,338.40","$13,038.40","$34,288.40",C,"$13,038.40",13038.4,AUD,"Repayment income = 134,200 + 16,320 = 150,520, which stays within the same $125,001-$179,285 band as the base example → Income above $125,000 = 150,520 - 125,000 = 25,520 → 17c component = 25,520 x 17% = 4,338.40 → Compulsory repayment = 8,700 + 4,338.40 = 13,038.40","{""$15,052.00"": ""Applied the 10% top-band rate to the whole repayment income"", ""$4,338.40"": ""Forgot to add the $8,700 base amount for the band"", ""$13,038.40"": ""Correct answer"", ""$34,288.40"": ""Applied 17% to the whole repayment income before adding the base, instead of only to the excess over $125,000""}","{""formula"": ""base + (repayment_income - threshold) * rate"", ""params"": {""repayment_income"": 150520, ""threshold"": 125000, ""base"": 8700, ""rate"": 0.17}, ""expected"": 13038.4}"
Q130,Individual income tax,Combined LITO + LMITO offset reducing tax payable,Income tax offset,2021-22,medium,"[""ITAA 1936 s 159N"", ""ITAA 1997 s 61-570"", ""ITAA 1997 s 61-575""]",https://www.ato.gov.au/forms-and-instructions/low-and-middle-income-earner-tax-offsets,"Selina's taxable income is $43,000 for 2021-22 and she is eligible for both offsets. The ATO works out her low income tax offset as $700 minus 5c per $1 above $37,500, and her low and middle income tax offset as $675 plus 7.5c per $1 above $37,000, then adds them together to reduce her tax payable.

What is the total tax offset (LITO + LMITO) used to reduce Selina's tax payable for 2021-22?

A. $1,550
B. $1,125
C. $1,100
D. $425","$1,550","$1,125","$1,100",$425,A,"$1,550",1550.0,AUD,"Kept taxable income within the overlapping 2021-22 LITO 5c taper band and LMITO 7.5c phase-in band ($37,501-$45,000) → LITO = 700 - (43,000 - 37,500) x 0.05 = 700 - 275 = 425 → LMITO = 675 + (43,000 - 37,000) x 0.075 = 675 + 450 = 1,125 → Total offset = 425 + 1,125 = 1,550","{""$1,550"": ""Correct answer"", ""$1,125"": ""Counted only the LMITO and omitted the LITO"", ""$1,100"": ""Used the LMITO base of $675 without adding the 7.5c-per-dollar phase-in amount"", ""$425"": ""Counted only the LITO and omitted the LMITO""}","{""formula"": ""(lito_max - (taxable_income - lito_taper_start) * lito_taper_rate) + (lmito_base + (taxable_income - lmito_phase_start) * lmito_phase_rate)"", ""params"": {""taxable_income"": 43000, ""lito_max"": 700, ""lito_taper_start"": 37500, ""lito_taper_rate"": 0.05, ""lmito_base"": 675, ""lmito_phase_start"": 37000, ""lmito_phase_rate"": 0.075}, ""expected"": 1550.0}"
Q131,Individual income tax,Foreign resident – no tax-free threshold and no Medicare levy,Income tax (individual),2024-25,medium,"[""Income Tax Rates Act 1986 s 12"", ""Income Tax Rates Act 1986 Sch 7 Pt II"", ""Medicare Levy Act 1986 s 7""]",https://www.ato.gov.au/tax-rates-and-codes/tax-rates-foreign-residents,"Diego is a foreign resident for tax purposes for the whole 2024-25 income year and has Australian-sourced taxable income of $105,000. He is NOT entitled to the tax-free threshold and, as a foreign resident, is NOT required to pay the Medicare levy. For 2024-25 the foreign resident rates are 32.5c for each $1 from the first dollar up to $120,000 (there is no $18,200 tax-free band and no $5,092 base step that residents get).

What is Diego's Australian income tax for 2024-25?

A. $34,125
B. $28,210
C. $24,592
D. $36,225","$34,125","$28,210","$24,592","$36,225",A,"$34,125",34125.0,AUD,"Foreign residents get NO tax-free threshold: the first dollar is taxed. → 2024-25 foreign resident first bracket: 32.5c for each $1 from 0 to $120,000. → Income tax = 105,000 x 0.325 = 34,125. → Foreign residents are not required to pay the Medicare levy, so nothing is added.","{""$34,125"": ""Correct answer"", ""$28,210"": ""Applied the $18,200 tax-free threshold before the foreign resident rate (foreign residents don't get it)"", ""$24,592"": ""Used the resident schedule ($5,092 base + 32.5c over $45,000), wrongly giving the foreign resident the tax-free threshold/base step"", ""$36,225"": ""Added a 2% Medicare levy even though foreign residents are exempt from the Medicare levy""}","{""formula"": ""taxable_income * foreign_rate"", ""params"": {""taxable_income"": 105000, ""foreign_rate"": 0.325, ""tax_free_threshold"": 18200, ""resident_base"": 5092, ""resident_threshold"": 45000, ""resident_rate"": 0.325, ""medicare_rate"": 0.02}, ""expected"": 34125.0}"
Q132,Employment,"PAYG instalments – varying the instalment amount (3rd quarter, 75% cumulative)",Income tax (PAYG instalments),2024-25,medium,"[""TAA 1953 Sch 1 s 45-110"", ""TAA 1953 Sch 1 s 45-205""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/payg-instalments/how-to-vary-your-payg-instalments,"Devon receives income from his investments. His quarterly PAYG instalment amount is $8,000, which he paid in the first quarter (1 July to 30 September) and second quarter (1 October to 31 December). In January he sells some investments and varies his instalment amount on his third-quarter activity statement. Using the PAYG instalments calculator he estimates the tax on his instalment income for the full year will be $24,000. For the third quarter he must have paid 75% of his estimated tax for the year, less the amounts already paid in the first two quarters.

What varied PAYG instalment amount does Devon need to pay in the third quarter?

A. -$4,000
B. $2,000
C. $8,000
D. $18,000","-$4,000","$2,000","$8,000","$18,000",B,"$2,000",2000.0,AUD,"Estimated tax for the year = $24,000 → Cumulative amount required by the third quarter = 75% × $24,000 = $18,000 → Less amounts already paid in Q1 and Q2: $18,000 − ($8,000 + $8,000) = $2,000","{""-$4,000"": ""Applied the second-quarter 50% proportion instead of the third-quarter 75%"", ""$2,000"": ""Correct answer"", ""$8,000"": ""Used 100% of the estimated tax instead of the 75% cumulative third-quarter proportion"", ""$18,000"": ""Forgot to subtract the first and second quarter instalments already paid""}","{""formula"": ""est_tax*q3_pct - (q1 + q2)"", ""params"": {""est_tax"": 24000, ""q3_pct"": 0.75, ""q1"": 8000, ""q2"": 8000}, ""expected"": 2000.0}"
Q133,Income tests,Rebate income – SAPTO shading-out (single),Income tax – seniors and pensioners tax offset,2024-25,medium,"[""ITAA 1936 s 160AAAA"", ""Income Tax Assessment (1936 Act) Regulation 2015""]",https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/tax-offsets/seniors-and-pensioners-tax-offset,"Dimitri is single and receives an age pension from Centrelink. His rebate income is $42,000. The single SAPTO maximum is $2,230, the shading-out threshold is $34,919 and the cut-out threshold is $52,759. Because his rebate income is below the cut-out threshold he is eligible, but as it exceeds the shading-out threshold his offset reduces by 12.5c for each $1 over $34,919.

What SAPTO amount is Dimitri entitled to for 2024-25?

A. $1,344.88
B. $2,230.00
C. -$3,020.00
D. $885.12","$1,344.88","$2,230.00","-$3,020.00",$885.12,A,"$1,344.88",1344.88,AUD,"Dimitri's rebate income $42,000 is above the $34,919 shading-out threshold but below the $52,759 cut-out, so it stays within the same shade-out segment as the base example → Rebate income above the shading-out threshold = 42,000 - 34,919 = 7,081 → Reduction = 7,081 x 0.125 = 885.125 → SAPTO = 2,230 - 885.125 = 1,344.875, which the ATO rounds up to 1,345","{""$1,344.88"": ""Correct answer"", ""$2,230.00"": ""Ignored the shading-out reduction and claimed the full maximum $2,230"", ""-$3,020.00"": ""Reduced by 12.5% of total rebate income instead of only the amount over the shading-out threshold"", ""$885.12"": ""Reported the reduction amount instead of the remaining offset""}","{""formula"": ""max_offset - (rebate_income - shade_threshold) * reduction_rate"", ""params"": {""rebate_income"": 42000, ""max_offset"": 2230, ""shade_threshold"": 34919, ""reduction_rate"": 0.125}, ""expected"": 1344.88}"
Q134,Rental property,"Borrowing expenses deductible over 5 years (first-year days apportionment, partly private)",Income tax (rental),2024-25,hard,"[""ITAA 1997 s 25-25""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses,"Imogen and Rupert (joint tenants, 50% each) secure a 25-year loan of $264,000 to buy a rental property for $220,000 and a private car for $44,000. Their borrowing expenses (establishment fees, valuation fees and stamp duty on the mortgage) total $2,150. As this exceeds $100, the deduction is spread over 5 years (1,826 days), which is less than the 25-year loan term. They obtained the loan on 3 August, giving 332 relevant days in the first income year, and only the rental-property portion ($220,000 of $264,000) is deductible.

What borrowing expenses deduction can Imogen and Rupert claim in the first year (combined)?

A. $390.91
B. $325.76
C. $358.33
D. $1,791.67",$390.91,$325.76,$358.33,"$1,791.67",B,$325.76,325.76,AUD,"Spread over 5 years (1,826 days) and apportion for the 332 days in the first year: 2,150 x (332 / 1,826) = 390.91 → Apportion for the rental-property portion of the loan: 390.91 x (220,000 / 264,000) → = 325.76","{""$390.91"": ""Forgot to exclude the private car portion of the loan ($39,000)"", ""$325.76"": ""Correct answer"", ""$358.33"": ""Used a flat one-fifth of the expenses instead of apportioning the first year by days"", ""$1,791.67"": ""Claimed the whole rental-portion of borrowing expenses in year 1 instead of spreading over 5 years""}","{""formula"": ""borrowing_expenses * (days_first_year / days_5yr) * (rental_loan / total_loan)"", ""params"": {""borrowing_expenses"": 2150, ""days_first_year"": 332, ""days_5yr"": 1826, ""rental_loan"": 220000, ""total_loan"": 264000}, ""expected"": 325.76}"
Q135,GST,Decreasing GST adjustment on sale of a partly-private capital asset,GST,2016-17,hard,"[""GST Act Div 132"", ""GST Act s 132-5""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/rules-for-specific-transactions/business-asset-transactions/gst-and-the-disposal-of-capital-assets,"Hugo runs an electrical business and is registered for GST. He bought a vehicle for $55,000 (including $5,000 GST) and used it 70% for business and 30% privately, so he claimed a GST credit of $3,500 (70% of the $5,000 GST). He made no other adjustments. Hugo later sells the vehicle for $27,500 (including $2,500 GST) as a taxable sale, and is entitled to a decreasing adjustment because he couldn't claim a full GST credit on purchase.

What decreasing GST adjustment can Hugo claim on the sale of the vehicle?

A. $750
B. $1,750
C. $1,500
D. $2,500",$750,"$1,750","$1,500","$2,500",A,$750,750.0,AUD,"Decreasing adjustment = 1/11 x price x (1 - adjusted GST credit / full GST credit) → = (1/11) x 27,500 x (1 - 3,500/5,000) → = 2,500 x (1 - 0.7) = 2,500 x 0.3 = 750","{""$750"": ""Correct answer"", ""$1,750"": ""Multiplied by the 70% credit ratio instead of the 30% private-use factor (1 - ratio)"", ""$1,500"": ""Took the difference between full and claimed credits ($1,500) instead of using the decreasing-adjustment formula"", ""$2,500"": ""Used the full 1/11 of the sale price without the (1 - credit ratio) factor""}","{""formula"": ""(1 / 11) * sale_price * (1 - adjusted_gst_credit / full_gst_credit)"", ""params"": {""sale_price"": 27500, ""adjusted_gst_credit"": 3500, ""full_gst_credit"": 5000}, ""expected"": 750.0}"
Q136,Superannuation,Excess concessional contributions added to assessable income (not silently capped),Income tax (individual),2024-25,hard,"[""ITAA 1997 s 291-15"", ""ITAA 1997 s 291-20"", ""ITAA 1997 Subdiv 291-B""]",https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap,"Nadia has total concessional contributions of $38,000 for 2024-25 (employer SG plus salary sacrifice plus a deductible personal contribution). The concessional contributions cap from 1 July 2024 is $30,000 and she has no unused carry-forward cap. The excess concessional contributions (ECC) of $8,000 are included in her assessable income and taxed at her marginal rate, reduced by a 15% non-refundable tax offset for the contributions tax the fund already paid. Nadia's marginal rate on this amount is 37%.

What extra income tax does Nadia pay on her excess concessional contributions for 2024-25 (after the 15% offset)?

A. $8,360
B. $2,960
C. $1,760
D. $0","$8,360","$2,960","$1,760",$0,C,"$1,760",1760.0,AUD,"Concessional cap from 1 July 2024 = $30,000. → Excess concessional contributions (ECC) = 38,000 - 30,000 = 8,000 (added to assessable income, NOT silently capped). → ECC taxed at marginal rate less a 15% offset: effective extra rate = 37% - 15% = 22%. → Extra tax = 8,000 x 0.22 = 1,760.","{""$8,360"": ""Applied the (marginal - 15%) rate to the whole $38,000 contribution instead of only the $8,000 excess"", ""$2,960"": ""Taxed the $8,000 excess at the full 37% marginal rate but forgot the 15% non-refundable offset"", ""$1,760"": ""Correct answer"", ""$0"": ""Assumed the contribution was simply capped at $30,000, so no excess and no extra tax""}","{""formula"": ""(total_cc - cap) * (marginal_rate - offset_rate)"", ""params"": {""total_cc"": 38000, ""cap"": 30000, ""marginal_rate"": 0.37, ""offset_rate"": 0.15}, ""expected"": 1760.0}"
Q137,Individual income tax,"Medicare levy surcharge – income $1 over the Tier 1 floor (whole-income, not excess)",Medicare levy surcharge,2024-25,medium,"[""A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 s 12"", ""Medicare Levy Act 1986 s 8B""]",https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates,"Owen is single with no dependants and has no private patient hospital cover for the whole of 2024-25. His income for MLS purposes is exactly $97,001 - just $1 over the 2024-25 single base-tier ceiling of $97,000 - which places him in Tier 1. The Tier 1 rate is 1% and the surcharge is levied on his WHOLE income for MLS purposes, not just the $1 above the threshold.

What is Owen's Medicare levy surcharge for 2024-25?

A. $0.00
B. $0.01
C. $1,212.51
D. $970.01",$0.00,$0.01,"$1,212.51",$970.01,D,$970.01,970.01,AUD,"2024-25 single base tier is $97,000 or less; $97,001 is $1 over, so Owen is in Tier 1 (1%). → The surcharge applies to the WHOLE income for MLS purposes, not the amount over the threshold. → MLS = 97,001 x 0.01 = 970.01.","{""$0.00"": ""Treated $97,001 as still within the base tier (off-by-one) and charged no surcharge"", ""$0.01"": ""Charged the 1% surcharge only on the $1 above the threshold instead of the whole income"", ""$1,212.51"": ""Used the Tier 2 rate of 1.25% instead of the Tier 1 rate of 1%"", ""$970.01"": ""Correct answer""}","{""formula"": ""income_for_mls * tier1_rate"", ""params"": {""income_for_mls"": 97001, ""tier1_rate"": 0.01, ""threshold"": 97000, ""tier2_rate"": 0.0125}, ""expected"": 970.01}"
Q138,Depreciation,Diminishing value method – second year (reduced base value),"Income tax (capital allowances, Div 40)",2025-26,medium,"[""ITAA 1997 s 40-25"", ""ITAA 1997 s 40-70""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules-capital-allowances/prime-cost-straight-line-and-diminishing-value-methods,"Continuing the diminishing value example, a survey instrument that cost $50,000 with a 4-year effective life declined by $25,000 in its first year. The base value reduces each year by the prior decline in value, so the base value for the second year is $50,000 minus $25,000 = $25,000. The asset is held for the full 365 days of the second year and used wholly for a taxable purpose (200% rate).

What is the decline in value for the second year under the diminishing value method?

A. $6,250
B. $9,375
C. $12,500
D. $25,000","$6,250","$9,375","$12,500","$25,000",C,"$12,500",12500.0,AUD,"Base value for year 2 = 50,000 - 25,000 (year 1 decline) = 25,000 → Diminishing value rate = 200% / 4 years = 50% → Decline in value = 25,000 x (365 / 365) x 50% = 12,500","{""$6,250"": ""Applied the prime cost 100% rate to the base value instead of the 200% rate"", ""$9,375"": ""Used the old 150% diminishing value rate"", ""$12,500"": ""Correct answer"", ""$25,000"": ""Used the original $50,000 cost instead of the reduced $25,000 base value""}","{""formula"": ""base_value * (days_held / days_year) * (dv_factor / effective_life)"", ""params"": {""base_value"": 25000, ""cost"": 50000, ""days_held"": 365, ""days_year"": 365, ""effective_life"": 4, ""dv_factor"": 2.0, ""pc_factor"": 1.0}, ""expected"": 12500.0}"
Q139,Division 7A & Company Tax,Interest accrued on a Division 7A amalgamated loan (daily-balance method),Income tax (Division 7A),2014-15,hard,"[""ITAA 1936 s 109E""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/private-company-benefits-division-7a-dividends/in-detail/division-7a-loans,"A Division 7A amalgamated loan has an opening principal of $90,000 at 1 July 2014. A $24,000 repayment on 1 October 2014 reduced the balance to $66,000, and a $12,000 repayment on 1 June 2015 reduced it to $54,000. Interest for the 2014-15 year is calculated annually in arrears on the daily balance at the 2015 benchmark rate of 5.95%: 92 days on $90,000, then 243 days on $66,000, then 30 days on $54,000 (365-day year).

What is the total interest accrued on the loan for the 2014-15 income year (rounded to the nearest dollar)?

A. $4,228
B. $4,165
C. $3,213
D. $5,355","$4,228","$4,165","$3,213","$5,355",A,"$4,228",4228.0,AUD,"Interest on $90,000 for 92 days: 5.95% x 90,000 x 92/365 = 1,349.59 → Interest on $66,000 for 243 days: 5.95% x 66,000 x 243/365 = 2,614.78 → Interest on $54,000 for 30 days: 5.95% x 54,000 x 30/365 = 264.05 → Total interest = 1,349.59 + 2,614.78 + 264.05 = 4,228 (rounded to nearest dollar)","{""$4,228"": ""Correct answer"", ""$4,165"": ""Used a simple average of the three balances rather than weighting each by the number of days it was outstanding"", ""$3,213"": ""Applied the rate to the closing balance only for the whole year"", ""$5,355"": ""Applied the benchmark rate to the full opening balance for the whole year, ignoring the repayments and day-weighting""}","{""formula"": ""round(rate*bal1*(days1/365) + rate*bal2*(days2/365) + rate*bal3*(days3/365))"", ""params"": {""bal1"": 90000, ""days1"": 92, ""bal2"": 66000, ""days2"": 243, ""bal3"": 54000, ""days3"": 30, ""rate"": 0.0595}, ""expected"": 4228.0}"
Q140,Rental property,Renting out part of a property (floor-area apportionment x time),Income tax (rental),2024-25,medium,"[""ITAA 1997 s 8-1"", ""IT 2167""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses,"Lawrence's private residence includes a self-contained flat whose floor area is one-third of the residence. He rents out the flat for 9 months (39 weeks) of the year at $160 per week; for the rest of the year his nephew lives there rent free. The annual mortgage interest, building insurance, rates and taxes for the whole property are $13,500. Lawrence apportions these on a floor-area basis (one-third applies to the flat) and then on a time basis (the flat produced rental income for three-quarters of the year).

What is Lawrence's net rental income from the flat for the year?

A. $2,865
B. -$3,885
C. -$7,260
D. $1,740","$2,865","-$3,885","-$7,260","$1,740",A,"$2,865",2865.0,AUD,"Rent = 39 weeks x $160 = 6,240 → Expenses for the flat = 13,500 x one-third x 75% = 3,375 → Net rental income = 6,240 - 3,375 = 2,865","{""$2,865"": ""Correct answer"", ""-$3,885"": ""Apportioned by time only and forgot the one-third floor-area apportionment"", ""-$7,260"": ""Deducted all $9,000 of whole-property expenses against the flat's rent"", ""$1,740"": ""Apportioned by floor area only and forgot the 50% time apportionment (flat rented half the year)""}","{""formula"": ""weeks_rented * rent_per_week - total_expenses * floor_fraction * time_fraction"", ""params"": {""weeks_rented"": 39, ""rent_per_week"": 160, ""total_expenses"": 13500, ""floor_fraction"": 0.3333333333333333, ""time_fraction"": 0.75}, ""expected"": 2865.0}"
Q141,Imputation,Franked dividend gross-up and top-up tax (individual),Income tax (imputation),2024-25,hard,"[""ITAA 1997 s 207-20"", ""ITAA 1997 s 207-35"", ""ITAA 1997 s 67-25""]",https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/receiving-dividends-and-other-distributions,"Tobias, an Australian resident individual on a 47% marginal rate (including Medicare levy), receives a franked distribution of $700 directly from a company with $300 of franking credits attached. He uses the gross-up and credit approach: he includes the grossed-up amount in assessable income and is entitled to a tax offset equal to the franking credit.

What is Tobias's additional ('top-up') tax payable on the franked distribution?

A. $329
B. $29
C. $470
D. $170",$329,$29,$470,$170,D,$170,170.0,AUD,"Grossed-up assessable income = $700 dividend + $300 franking credit = $1,000 → Tax on grossed-up income at 47% = $1,000 x 0.47 = $470 → Less franking credit tax offset = $300 → Top-up tax payable = $470 - $300 = $170","{""$329"": ""Applied the marginal rate to the cash dividend only, ignoring both the gross-up and the offset"", ""$29"": ""Taxed only the cash dividend (not grossed up) before deducting the franking credit, producing a negative/under-stated result"", ""$470"": ""Grossed up correctly but forgot to subtract the franking credit tax offset"", ""$170"": ""Correct answer""}","{""formula"": ""(dividend + franking_credit) * marginal_rate - franking_credit"", ""params"": {""dividend"": 700, ""franking_credit"": 300, ""marginal_rate"": 0.47}, ""expected"": 170.0}"
Q142,FBT,Car parking fringe benefit – daily rate from a periodic (monthly) fee,Fringe benefits tax,2024-25,medium,"[""FBTAA 1986 s 39A"", ""FBTAA 1986 s 39C""]",https://www.ato.gov.au/law/view/document?DocID=SAV/FBTGEMP/00017&PiT=99991231235958,"Park-Pro is a commercial parking station whose all-day parking fees are lower the greater the financial commitment. A customer pays $357 to park their car for a month that contains 21 business days, with the facility open 24 hours a day. Under the commercial parking station method, the lowest daily rate for all-day parking is worked out by dividing the periodic fee by the number of business days in the period.

What is the lowest daily rate charged by Park-Pro for all-day parking (the per-day taxable value of a car parking benefit under the commercial parking station method)?

A. $11.90
B. $32.08
C. $17.00
D. $357.00",$11.90,$32.08,$17.00,$357.00,C,$17.00,17.0,AUD,"Where all-day parking fees are paid periodically, the equivalent daily rate = total fee / business days in the period → Daily rate = 357 / 21 = 17.00 (rounded to the nearest cent) → This $17.00 is the lowest all-day parking rate and is the taxable value of one car parking fringe benefit under the commercial parking station method","{""$11.90"": ""Divided the monthly fee by 30 calendar days instead of the 21 business days"", ""$32.08"": ""Grossed up the daily taxable value by the Type 2 factor before reporting it"", ""$17.00"": ""Correct answer"", ""$357.00"": ""Used the whole monthly fee as the daily rate""}","{""formula"": ""monthly_fee / business_days"", ""params"": {""monthly_fee"": 357, ""business_days"": 21}, ""expected"": 17.0}"
Q143,FBT,Loan fringe benefit – interest-free loan at benchmark interest rate,Fringe benefits tax,2025-26,easy,"[""FBTAA 1986 s 16"", ""FBTAA 1986 s 18""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2026-instructions/item-23-fringe-benefit-categories-for-fbt-return-2026,"Clearview Hardware, a retail business, lends its employee Sienna Okafor $35,000. It does not charge any interest, and Sienna makes no repayments during the FBT year ending 31 March 2026. The statutory (benchmark) interest rate that applies from 1 April 2025 is 8.62%.

What is the taxable value of the loan fringe benefit for the FBT year ending 31 March 2026?

A. $1,417.99
B. $5,692.48
C. $3,017.00
D. $35,000.00","$1,417.99","$5,692.48","$3,017.00","$35,000.00",C,"$3,017.00",3017.0,AUD,"Taxable value of a loan fringe benefit = interest at the statutory (benchmark) rate minus interest actually charged → Benchmark interest rate for the FBT year ending 31 March 2026 = 8.62% → Notional interest = 35,000 x 8.62% = 3,017 → Actual interest charged = 35,000 x 0% = 0 → Taxable value = 3,017 - 0 = 3,017 (grossed up at the Type 2 rate of 1.8868 to calculate FBT)","{""$1,417.99"": ""Applied the 47% FBT rate to the notional interest instead of reporting the taxable value"", ""$5,692.48"": ""Grossed up the taxable value by the Type 2 factor instead of reporting the pre-gross-up taxable value"", ""$3,017.00"": ""Correct answer"", ""$35,000.00"": ""Treated the whole loan principal as the taxable value""}","{""formula"": ""loan * benchmark_rate - loan * actual_rate"", ""params"": {""loan"": 35000, ""benchmark_rate"": 0.0862, ""actual_rate"": 0.0}, ""expected"": 3017.0}"
Q144,Employment,Work-related car – logbook business-use percentage from kilometres,Income tax (work-related deduction),2024-25,easy,"[""ITAA 1997 s 28-90"", ""ITAA 1997 s 28-100""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions/deductions-for-motor-vehicle-expenses/logbook-method,"Owen keeps a logbook to work out the business-use percentage of his car. Over the logbook period his car travelled a total of 13,000 kilometres, of which 9,750 kilometres were for business-related purposes.

What is Owen's business-use percentage for the logbook method?

A. $0.75
B. $75.00
C. $25.00
D. $133.33",$0.75,$75.00,$25.00,$133.33,B,$75.00,75.0,percent,"Business-use percentage = (business kilometres ÷ total kilometres) × 100 → = 9,750 ÷ 13,000 × 100 → = 0.75 × 100 = 75%","{""$0.75"": ""Forgot to multiply the fraction by 100 to express it as a percentage"", ""$75.00"": ""Correct answer"", ""$25.00"": ""Used the private (non-business) kilometres in the numerator instead of business kilometres"", ""$133.33"": ""Divided total kilometres by business kilometres (ratio inverted)""}","{""formula"": ""business_km/total_km*100"", ""params"": {""business_km"": 9750, ""total_km"": 13000}, ""expected"": 75.0}"
Q145,GST,GST on a taxable sale – 1/11 of the GST-inclusive price,GST,2017-18,easy,"[""GST Act s 9-70"", ""GST Act s 9-75""]",https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/motor-vehicle-and-transport/motor-vehicle-incentive-payments/examples-working-out-the-gst,"In July 2017 Summit Auto, a GST-registered car dealer, sold a 'Vello model' motor vehicle. Daniel paid $45,100 (including GST) for the vehicle, and the manufacturer paid Summit Auto a $3,300 (including GST) run-out incentive that forms part of the consideration, so the total price for the sale of the motor vehicle is $48,400. Summit Auto must report the full GST payable on this taxable sale.

What is the total GST payable by Summit Auto on the sale of the vehicle?

A. $4,100
B. $4,840
C. $4,400
D. $400","$4,100","$4,840","$4,400",$400,C,"$4,400",4400.0,AUD,"Total price for the sale = $45,100 paid by Daniel + $3,300 incentive from the manufacturer = 48,400 → GST on a fully taxable sale = one eleventh of the GST-inclusive price → GST = 48,400 / 11 = 4,400","{""$4,100"": ""Used only the $45,100 the buyer paid, omitting the $3,300 incentive that is part of the consideration"", ""$4,840"": ""Took 10% of the GST-inclusive price instead of 1/11"", ""$4,400"": ""Correct answer"", ""$400"": ""Divided the price by 11 twice""}","{""formula"": ""total_sale_price / 11"", ""params"": {""total_sale_price"": 48400, ""amount_paid_by_buyer"": 45100}, ""expected"": 4400.0}"
Q146,Study and training loans,Repayment income (taxable income + RFBA) driving a 2024-25 HELP repayment,Study and training support loan – compulsory repayment,2024-25,medium,"[""Higher Education Support Act 2003 s 154-1"", ""FBTAA 1986 s 135P""]",https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/reportable-fringe-benefits-for-employees/consequences-of-having-a-reportable-fringe-benefits-amount,"Bianca has a HELP debt of $12,000. Her taxable income for 2024-25 is $61,500. Based on taxable income alone her repayment would be lower. However, she also receives reportable fringe benefits with a reportable fringe benefit amount (RFBA) of $16,200, which is added to her taxable income to give her repayment income. For 2024-25 the whole repayment income is multiplied by the applicable rate, and a repayment income of $77,700 falls in the 3.5% band.

What is Bianca's compulsory HELP repayment for 2024-25 once her RFBA is included in her repayment income?

A. $615.00
B. $2,719.50
C. $2,152.50
D. $3,108.00",$615.00,"$2,719.50","$2,152.50","$3,108.00",B,"$2,719.50",2719.5,AUD,"Repayment income = taxable income + RFBA = 61,500 + 16,200 = 77,700 → A 2024-25 repayment income of $77,700 falls in the same 3.5% band ($74,856-$79,346) as the base example → For 2024-25 the rate applies to the whole repayment income: 77,700 x 3.5% = 2,719.50","{""$615.00"": ""Ignored the RFBA and used taxable income at its 1.0% band"", ""$2,719.50"": ""Correct answer"", ""$2,152.50"": ""Applied the correct 3.5% rate but to taxable income only, omitting the RFBA"", ""$3,108.00"": ""Used the next band's 4.0% rate instead of 3.5%""}","{""formula"": ""(taxable_income + rfba) * rate"", ""params"": {""taxable_income"": 61500, ""rfba"": 16200, ""rate"": 0.035, ""taxable_only_rate"": 0.01}, ""expected"": 2719.5}"
Q147,Individual income tax,Income below the tax-free threshold and below the Medicare low-income threshold,Income tax (individual),2024-25,medium,"[""Income Tax Rates Act 1986 Sch 7"", ""Medicare Levy Act 1986 s 7"", ""ITAA 1997 s 4-10""]",https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-reduction/medicare-levy-reduction-for-low-income-earners,"Tomas is an Australian resident for all of 2024-25 with a taxable income of $16,000, single with no dependants. This is below the $18,200 tax-free threshold, so his basic income tax is nil. It is also at or below the 2024-25 single Medicare levy lower threshold of $27,222, so he pays no Medicare levy. (The first Stage 3 rate is 16c per $1 over $18,200, and the full Medicare levy is 2%.)

What is Tomas's total tax (income tax plus Medicare levy) for 2024-25?

A. $2,880
B. $0
C. -$352
D. $320","$2,880",$0,-$352,$320,B,$0,0.0,AUD,"Taxable income $16,000 is below the $18,200 tax-free threshold, so income tax = 0. → $16,000 is below the 2024-25 single Medicare lower threshold ($27,222), so Medicare levy = 0. → Total tax = 0 + 0 = 0.","{""$2,880"": ""Taxed the whole $16,000 at 16% and charged a 2% levy, ignoring both the tax-free threshold and the low-income exemption"", ""$0"": ""Correct answer"", ""-$352"": ""Applied 16c to (income minus tax-free threshold), producing a negative figure instead of clamping tax at $0"", ""$320"": ""Charged the 2% Medicare levy despite income being below the low-income threshold""}","{""formula"": ""max(0, taxable_income - tax_free_threshold) * first_rate + max(0, taxable_income - medicare_low_threshold) * medicare_rate"", ""params"": {""taxable_income"": 16000, ""tax_free_threshold"": 18200, ""first_rate"": 0.16, ""medicare_rate"": 0.02, ""medicare_low_threshold"": 27222}, ""expected"": 0.0}"
Q148,CGT,Applying a capital loss before the CGT discount (multiple assets),Income tax (CGT),2024-25,medium,"[""ITAA 1997 s 102-5"", ""ITAA 1997 s 110-55"", ""ITAA 1997 s 115-100""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/how-to-calculate-your-cgt,"In the same financial year, Daniel makes a $120,000 capital gain on an investment property he owned for 6 years. He also sells 2,000 shares he bought for $24,000 (including stamp duty and brokerage) for $16,800, making a capital loss of $7,200. He has no other capital gains or losses and no prior-year losses.

What is Daniel's net capital gain for the year after offsetting the share loss and applying the CGT discount?

A. $52,800
B. $60,000
C. $63,600
D. $56,400","$52,800","$60,000","$63,600","$56,400",D,"$56,400",56400.0,AUD,"Capital gain on property = 120,000 → Capital loss on shares = 7,200 (reduced cost base 24,000 - proceeds 16,800) → Offset the capital loss against the gain BEFORE the discount: 120,000 - 7,200 = 112,800 → Apply 50% CGT discount to the remaining gain: 112,800 x 0.5 = 56,400","{""$52,800"": ""Applied the discount before deducting the capital loss"", ""$60,000"": ""Ignored the share capital loss entirely"", ""$63,600"": ""Added the loss to the gain instead of subtracting it"", ""$56,400"": ""Correct answer""}","{""formula"": ""(property_gain - share_loss) * discount_rate"", ""params"": {""property_gain"": 120000, ""share_loss"": 7200, ""discount_rate"": 0.5}, ""expected"": 56400.0}"
Q149,CGT,Indexation method – shares acquired before 21 Sep 1999,Income tax (CGT),2012-13,medium,"[""ITAA 1997 s 104-10"", ""ITAA 1997 s 114-1"", ""ITAA 1997 s 960-275""]",https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-personal-investors-guide-2013/part-b-sale-of-shares-or-units/b2-worked-examples-for-shares-and-units,"In October 1986 Beatriz was given 800 shares in QHL Ltd with a market value of $4,000. She sold the shares last April for $7,800. As she acquired the shares before 21 September 1999 and owned them for more than 12 months, she can use the indexation method. The indexation factor is CPI Sep 1999 quarter (123.4) / CPI Dec 1986 quarter (79.8) = 1.546, giving an indexed cost base of $4,000 x 1.546 = $6,184.

What is Beatriz's capital gain on the QHL Ltd shares using the indexation method?

A. $808
B. $1,616
C. $1,900
D. $3,800",$808,"$1,616","$1,900","$3,800",B,"$1,616",1616.0,AUD,"Indexation factor = 123.4 / 79.8 = 1.546 → Indexed cost base = 4,000 x 1.546 = 6,184 → Capital gain (indexation method) = 7,800 - 6,184 = 1,616 → Under the indexation method the CGT discount does not apply","{""$808"": ""Wrongly applied the 50% discount on top of the indexation method"", ""$1,616"": ""Correct answer"", ""$1,900"": ""Used the discount method on the unindexed gain instead of indexation"", ""$3,800"": ""Used the unindexed cost base instead of indexing it""}","{""formula"": ""proceeds - cost * indexation_factor"", ""params"": {""proceeds"": 7800, ""cost"": 4000, ""indexation_factor"": 1.546, ""discount_rate"": 0.5}, ""expected"": 1616.0}"
Q150,FBT,Housing fringe benefit – market rental less recipient rent,Fringe benefits tax,2025-26,easy,"[""FBTAA 1986 s 25"", ""FBTAA 1986 s 26""]",https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2026-instructions/item-23-fringe-benefit-categories-for-fbt-return-2026,"Alpine Confectionery Pty Ltd, a chocolate manufacturer, provides a flat in the Melbourne CBD to its employee Maeve Donovan for the FBT year ending 31 March 2026. The flat is Maeve's usual place of residence for the whole year. The market rental value for the year is $49,400 (52 weeks at $950). Maeve pays a nominal rent of $7,800 for the year ($150 per week).

What is the taxable value of the housing fringe benefit for the FBT year ending 31 March 2026?

A. $41,600
B. $49,400
C. -$44,200
D. $31,200","$41,600","$49,400","-$44,200","$31,200",A,"$41,600",41600.0,AUD,"Taxable value of a housing fringe benefit = market rental value of the right to occupy minus any recipient's (employee) rent → Market rental value for the year = 49,400 (52 weeks x $950) → Recipient rent paid by the employee = 7,800 (52 weeks x $150) → Taxable value = 49,400 - 7,800 = 41,600","{""$41,600"": ""Correct answer"", ""$49,400"": ""Ignored the recipient rent paid by the employee"", ""-$44,200"": ""Treated the $7,800 annual rent as a monthly figure and multiplied it by 12"", ""$31,200"": ""Wrongly applied a 75% reduction (which applies to certain hotel/caravan staff housing, not a CBD flat)""}","{""formula"": ""market_rental - recipient_rent"", ""params"": {""market_rental"": 49400, ""recipient_rent"": 7800}, ""expected"": 41600.0}"
Q151,CGT,CGT discount denied – foreign resident for whole ownership period (post 8 May 2012),Income tax (CGT),2024-25,hard,"[""ITAA 1997 s 115-105"", ""ITAA 1997 s 115-115"", ""ITAA 1997 s 115-25""]",https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/cgt-discount-for-foreign-residents,"Diego is a foreign resident for Australian tax purposes for the entire period he owns a taxable Australian real property. He acquired the property on 1 March 2015 (after 8 May 2012) and sold it on 1 September 2024, owning it for over 9 years – well beyond 12 months. He makes a capital gain of $300,000 on the sale and has no capital losses. He was a foreign resident for the whole of his ownership period and had no period of Australian residency.

What capital gain must Diego include in his Australian tax return for 2024-25?

A. $150,000
B. $300,000
C. $225,000
D. $75,000","$150,000","$300,000","$225,000","$75,000",B,"$300,000",300000.0,AUD,"The asset was acquired after 8 May 2012 and Diego was a foreign resident for the entirety of his ownership period → In that case he is not entitled to ANY CGT discount, despite owning the asset for more than 12 months → There is no period of Australian residency, so no apportioned discount is available either → Capital gain to declare = full gain = 300,000","{""$150,000"": ""Trap: applied the full 50% discount because the asset was held over 12 months, ignoring the foreign-residency exclusion"", ""$300,000"": ""Correct answer"", ""$225,000"": ""Applied a partial (25%) apportioned discount even though there was no Australian residency period"", ""$75,000"": ""Applied the 50% discount and halved it again""}","{""formula"": ""gain"", ""params"": {""gain"": 300000, ""discount_rate"": 0.5}, ""expected"": 300000.0}"
Q152,Individual income tax,Net tax payable after LMITO (flat offset band),Income tax offset,2021-22,medium,"[""ITAA 1997 s 4-10"", ""ITAA 1997 s 61-575"", ""Income Tax Rates Act 1986 Sch 7""]",https://www.ato.gov.au/forms-and-instructions/low-and-middle-income-earner-tax-offsets,"Roberto's taxable income is $74,000 for 2021-22. He is not eligible for the low income tax offset (his income is above $66,667). As his income is more than $48,000 but less than $90,000, he is eligible for a low and middle income tax offset of $1,500. The ATO reduces his tax payable of $14,517 by $1,500 using the LMITO. (Tax payable figure excludes the Medicare levy.)

What is Roberto's income tax payable after the LMITO is applied for 2021-22?

A. $14,517
B. $13,017
C. $16,017
D. $12,317","$14,517","$13,017","$16,017","$12,317",B,"$13,017",13017.0,AUD,"Roberto's income ($74,000) is in the $48,001-$90,000 flat LMITO band, so the LMITO is the full $1,500 → Tax payable before offset = 14,517 (2021-22 rates: 5,092 + (74,000 - 45,000) x 0.325 = 5,092 + 9,425) → Net tax payable = 14,517 - 1,500 = 13,017","{""$14,517"": ""Forgot to apply the $1,500 LMITO at all"", ""$13,017"": ""Correct answer"", ""$16,017"": ""Added the offset to tax payable instead of subtracting it"", ""$12,317"": ""Also subtracted a $700 LITO, but Roberto is not eligible for the LITO above $66,667""}","{""formula"": ""tax_payable_before_offset - lmito"", ""params"": {""tax_payable_before_offset"": 14517, ""lmito"": 1500}, ""expected"": 13017.0}"
Q153,Depreciation,"Instant asset write-off – small business (business-use apportionment, multiple assets)","Income tax (simplified depreciation, Div 328)",2025-26,medium,"[""ITAA 1997 s 328-180"", ""IT(TP)A 1997 s 328-180""]",https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/instant-asset-write-off,"On 22 October 2025, Liam (a sole trader using the simplified depreciation rules) buys a new laptop for $9,200 that he uses 75% of the time for his business. He also buys a new label printer for $1,200 that he uses only for business. Each asset costs less than the $20,000 instant asset write-off limit for 2025-26, so he can immediately deduct the business-use portion of each.

What combined instant asset write-off deduction can Liam claim for 2025-26?

A. $7,800
B. $6,900
C. $8,100
D. $10,400","$7,800","$6,900","$8,100","$10,400",C,"$8,100",8100.0,AUD,"Laptop: business-use portion = 75% x 9,200 = 6,900 → Label printer: used 100% for business = 1,200 → Combined deduction = 6,900 + 1,200 = 8,100","{""$7,800"": ""Wrongly applied the 75% business-use factor to the printer as well"", ""$6,900"": ""Omitted the printer entirely"", ""$8,100"": ""Correct answer"", ""$10,400"": ""Claimed the full laptop cost, ignoring the 25% private-use reduction""}","{""formula"": ""computer_cost * computer_business_pct + printer_cost"", ""params"": {""computer_cost"": 9200, ""computer_business_pct"": 0.75, ""printer_cost"": 1200}, ""expected"": 8100.0}"
Q154,Company tax,"Base rate entity – passive income exactly 80% (boundary, still BRE)",Income tax (company),2024-25,hard,"[""ITRA 1986 s 23"", ""ITAA 1997 s 23AA"", ""ITAA 1997 s 23AB""]",https://www.ato.gov.au/tax-rates-and-codes/company-tax-rate-changes,"Harbourview Pty Ltd has aggregated turnover of $8 million for 2024-25 (under the $50 million threshold). Its assessable income is made up such that exactly 80% is base rate entity passive income and 20% is active trading income. Its taxable income is $150,000. The base rate entity test requires passive income to be 80% OR LESS of assessable income.

What is Harbourview Pty Ltd's company income tax payable for 2024-25?

A. $37,500
B. $45,000
C. $7,500
D. $41,250","$37,500","$45,000","$7,500","$41,250",A,"$37,500",37500.0,AUD,"Aggregated turnover is under $50m → A company is a base rate entity if 80% OR LESS of assessable income is base rate entity passive income → Passive income is exactly 80%, which satisfies the '80% or less' test, so the company IS a base rate entity → The 25% base rate entity rate applies: $150,000 x 25% = $37,500","{""$37,500"": ""Correct answer"", ""$45,000"": ""Treated exactly 80% as failing the test and applied the 30% full rate, but 80% satisfies the '80% or less' test"", ""$7,500"": ""Applied only the 5% rate differential instead of the 25% base rate entity rate"", ""$41,250"": ""Used the superseded 27.5% base rate entity rate from an earlier income year""}","{""formula"": ""taxable_income * rate_bre"", ""params"": {""taxable_income"": 150000, ""rate_bre"": 0.25, ""rate_full"": 0.3, ""rate_old"": 0.275}, ""expected"": 37500.0}"
Q155,Rental property,"Holiday home – apportioned general expenses plus full agent fees and capital works, net result",Income tax (rental),2024-25,hard,"[""ITAA 1997 s 8-1"", ""ITAA 1997 Div 43"", ""IT 2167""]",https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses,"Sefina jointly owns a holiday home she owns for the whole of 2024-25. It is rented out (and genuinely available for rent) for 31 of the 52 weeks at $650 per week; she reserves it for her own private use the rest of the year. Her general expenses (interest, insurance, rates and maintenance) total $26,000 and must be apportioned to the period the property was rented or available. Her property agent's fees and advertising for tenants of $1,500 are fully deductible. A quantity surveyor's report shows a Division 43 capital works deduction of $3,000 for the whole-year ownership.

What is Sefina's net rental income from the holiday home for 2024-25?

A. -$10,350.00
B. $150.00
C. $3,150.00
D. $755.77","-$10,350.00",$150.00,"$3,150.00",$755.77,B,$150.00,150.0,AUD,"Rent received = 31 × $650 = 20,150 → Apportion general expenses to the 31 weeks rented/available: (31 / 52) × 26,000 = 15,500 → Add the fully deductible agent fees ($1,500) and the full-year capital works deduction ($3,000): 15,500 + 1,500 + 3,000 = 20,000 total deductions → Net rental income = 20,150 − 20,000 = 150","{""-$10,350.00"": ""Deducted the full year of general expenses instead of apportioning to the 31 weeks rented"", ""$150.00"": ""Correct answer"", ""$3,150.00"": ""Omitted the $3,000 capital works (Division 43) deduction"", ""$755.77"": ""Apportioned the agent fees by weeks too, instead of claiming them in full""}","{""formula"": ""weeks_rented*rent_per_week - ((weeks_rented/weeks_in_year)*gen_expenses + agent_fees + capital_works)"", ""params"": {""weeks_rented"": 31, ""rent_per_week"": 650, ""gen_expenses"": 26000, ""weeks_in_year"": 52, ""agent_fees"": 1500, ""capital_works"": 3000}, ""expected"": 150.0}"
Q156,Income tests,"Income for Medicare levy surcharge purposes + MLS liability (Tier 1, single)",Medicare levy surcharge,2025-26,easy,"[""A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999"", ""Medicare Levy Act 1986 s 8B-8G""]",https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates,"In 2025-26 Liam is 38, single with no dependants and does not have an appropriate level of private patient hospital cover. His taxable income is $84,000 and he declares total reportable fringe benefits of $23,000, giving income for MLS purposes of $107,000. As a single with income between $101,001 and $118,000 he is a Tier 1 earner, so the 1% MLS rate applies.

What is Liam's Medicare levy surcharge liability for 2025-26?

A. $840.00
B. $1,605.00
C. $1,337.50
D. $1,070.00",$840.00,"$1,605.00","$1,337.50","$1,070.00",D,"$1,070.00",1070.0,AUD,"Income for MLS purposes = taxable income + reportable fringe benefits = 84,000 + 23,000 = 107,000 → $107,000 is in the single Tier 1 range ($101,001-$118,000), the same tier as the base example, so the MLS rate is 1% → MLS = 107,000 x 1% = 1,070","{""$840.00"": ""Applied the MLS to taxable income only, omitting the reportable fringe benefits"", ""$1,605.00"": ""Used the Tier 3 rate of 1.5% instead of the Tier 1 rate"", ""$1,337.50"": ""Used the Tier 2 rate of 1.25% instead of the Tier 1 rate"", ""$1,070.00"": ""Correct answer""}","{""formula"": ""(taxable_income + reportable_fringe_benefits) * mls_rate"", ""params"": {""taxable_income"": 84000, ""reportable_fringe_benefits"": 23000, ""mls_rate"": 0.01}, ""expected"": 1070.0}"