TAX FNSACC522: Supervised Online
Assessment
Instructions:
This assessment contains 150 multiple-choice questions.
Choose the single best answer for each question.
The answers and rationales are provided at the end of each section.
Section 1: Australian Tax Fundamentals (Questions 1-20)
1. Which body is responsible for the administration of the Australian federal tax system?
a) The Reserve Bank of Australia (RBA)
b) The Australian Taxation Office (ATO)
c) The Australian Securities and Investments Commission (ASIC)
d) The Tax Practitioners Board (TPB)
,2. What is the primary legislation that governs income tax in Australia?
a) The GST Act 1999
b) The Fringe Benefits Tax Act 1986
c) The Income Tax Assessment Act 1936 and 1997
d) The Corporations Act 2001
3. For the 2025-26 income year, what is the tax-free threshold for an Australian resident individual?
a) $0
b) $18,200
c) $18,201
d) $45,000
4. What is the purpose of the PAYG (Pay As You Go) system?
a) To calculate an individual's tax refund at the end of the year.
b) To collect tax from businesses only.
c) To collect tax incrementally from income as it is earned throughout the year.
d) To pay government benefits to taxpayers.
5. Which of the following is NOT a category of taxpayer for Australian income tax purposes?
a) Resident individual
b) Non-resident individual
c) Foreign company
d) A public hospital
6. What is the Medicare Levy primarily used to fund?
,a) Public education
b) The Australian Defence Force
c) Part of the cost of the public health care system
d) Infrastructure projects like roads and railways
7. An individual is considered an Australian resident for tax purposes if they:
a) Hold an Australian passport.
b) Reside in Australia, or their domicile is in Australia unless the Commissioner is satisfied their
permanent place of abode is outside Australia.
c) Have lived in Australia for more than 6 months.
d) Are registered to vote in Australian elections.
8. What is the role of the Tax Practitioners Board (TPB)?
a) To audit taxpayers.
b) To set the official interest rates.
c) To regulate tax agents and BAS agents.
d) To write the tax legislation.
9. A company's tax rate depends on whether it is a "base rate entity." For the 2025-26 year, what is the
turnover threshold to be considered a base rate entity?
a) $10 million
b) $25 million
c) $50 million
d) $100 million
10. What does the term "assessable income" refer to?
, a) All money received by a taxpayer.
b) Income that is subject to tax, including ordinary income and statutory income.
c) Only the income that is deposited into a bank account.
d) Income that is exempt from tax.
11. Which of the following is an example of statutory income?
a) Wages from employment
b) Business income
c) A capital gain
d) Interest from a bank account
12. What is a "tax offset"?
a) A deduction from assessable income.
b) A reduction of the tax payable, calculated after the tax on taxable income has been determined.
c) An amount added to your taxable income.
d) A penalty for late lodgement.
13. The "taxable income" of a taxpayer is calculated as:
a) Assessable Income + Deductions
b) Assessable Income - Exempt Income
c) Assessable Income - Deductions
d) Gross Income - Tax Offsets
14. What is the key difference between a tax deduction and a tax offset?
a) A deduction reduces your taxable income, while an offset reduces the tax you owe.
Assessment
Instructions:
This assessment contains 150 multiple-choice questions.
Choose the single best answer for each question.
The answers and rationales are provided at the end of each section.
Section 1: Australian Tax Fundamentals (Questions 1-20)
1. Which body is responsible for the administration of the Australian federal tax system?
a) The Reserve Bank of Australia (RBA)
b) The Australian Taxation Office (ATO)
c) The Australian Securities and Investments Commission (ASIC)
d) The Tax Practitioners Board (TPB)
,2. What is the primary legislation that governs income tax in Australia?
a) The GST Act 1999
b) The Fringe Benefits Tax Act 1986
c) The Income Tax Assessment Act 1936 and 1997
d) The Corporations Act 2001
3. For the 2025-26 income year, what is the tax-free threshold for an Australian resident individual?
a) $0
b) $18,200
c) $18,201
d) $45,000
4. What is the purpose of the PAYG (Pay As You Go) system?
a) To calculate an individual's tax refund at the end of the year.
b) To collect tax from businesses only.
c) To collect tax incrementally from income as it is earned throughout the year.
d) To pay government benefits to taxpayers.
5. Which of the following is NOT a category of taxpayer for Australian income tax purposes?
a) Resident individual
b) Non-resident individual
c) Foreign company
d) A public hospital
6. What is the Medicare Levy primarily used to fund?
,a) Public education
b) The Australian Defence Force
c) Part of the cost of the public health care system
d) Infrastructure projects like roads and railways
7. An individual is considered an Australian resident for tax purposes if they:
a) Hold an Australian passport.
b) Reside in Australia, or their domicile is in Australia unless the Commissioner is satisfied their
permanent place of abode is outside Australia.
c) Have lived in Australia for more than 6 months.
d) Are registered to vote in Australian elections.
8. What is the role of the Tax Practitioners Board (TPB)?
a) To audit taxpayers.
b) To set the official interest rates.
c) To regulate tax agents and BAS agents.
d) To write the tax legislation.
9. A company's tax rate depends on whether it is a "base rate entity." For the 2025-26 year, what is the
turnover threshold to be considered a base rate entity?
a) $10 million
b) $25 million
c) $50 million
d) $100 million
10. What does the term "assessable income" refer to?
, a) All money received by a taxpayer.
b) Income that is subject to tax, including ordinary income and statutory income.
c) Only the income that is deposited into a bank account.
d) Income that is exempt from tax.
11. Which of the following is an example of statutory income?
a) Wages from employment
b) Business income
c) A capital gain
d) Interest from a bank account
12. What is a "tax offset"?
a) A deduction from assessable income.
b) A reduction of the tax payable, calculated after the tax on taxable income has been determined.
c) An amount added to your taxable income.
d) A penalty for late lodgement.
13. The "taxable income" of a taxpayer is calculated as:
a) Assessable Income + Deductions
b) Assessable Income - Exempt Income
c) Assessable Income - Deductions
d) Gross Income - Tax Offsets
14. What is the key difference between a tax deduction and a tax offset?
a) A deduction reduces your taxable income, while an offset reduces the tax you owe.
