ASSESSABLE INCOME

Course overview

This course provides a comprehensive overview of what constitutes assessable income under Australian tax law. It covers the distinction between ordinary and statutory income, the treatment of exempt income, and various specific types of income receipts relevant to tax and accounting professionals. Through detailed lessons and real-world examples, participants will learn how different forms of income are identified and taxed, and how to apply these principles in practical scenarios.

Course objective

• Understand the components of assessable income and the differences between ordinary, statutory, and exempt income.
• Learn to distinguish between revenue and capital receipts for tax purposes.
• Identify the tax treatment of income from personal services, employment, business, and investments.
• Recognise how non-cash benefits, barter transactions, and loyalty rewards are treated for income tax.
• Understand the taxation of employment termination payments, superannuation lump sums, redundancy payouts, and other special receipts.

Learning outcome

By the end of this course, participants will be able to:

• Define and differentiate ordinary income and statutory income, citing examples of each as per Australian tax law.
• Determine whether a given receipt is assessable or exempt from tax, and explain why, referencing relevant legislation or rulings.
• Apply the capital vs revenue distinction to real-life scenarios to decide if a receipt is on the income account (taxable as income) or the capital account.
• Identify tax obligations for various forms of remuneration and business income, including salaries, fees, allowances, and non-cash benefits (fringe benefits, barter, cryptocurrency).
• Calculate and explain the tax implications of termination and retirement payments (like ETPs, superannuation lump sums, redundancies) and other special receipts such as compensation or incentive payments, using current rates and thresholds.