PROFESSIONAL DEVELOPMENT COURSE

Australia’s taxation framework and the principles that underpin tax compliance

Professional reference and assessment | 2026–27

Scope and reliance

This material provides general reference information. It does not constitute taxation, legal, superannuation or financial advice. The application of Australian law depends on the relevant facts and may change after the date of this edition.

Course overview

Australia’s taxation framework combines federal, state, territory and local government responsibilities with Commonwealth administration led by the Department of the Treasury and the Australian Taxation Office. The material examines the principal 2026–27 settings for income tax, Medicare, family payments, study loans, entity taxation and business identifiers that are relevant to professional tax and accounting work.

The content is organised into five knowledge blocks that move from institutional foundations and annual tax administration to individual rates, Medicare and family support, residency and study loans, and the taxation of companies and trusts. Tables, calculations, applied examples and a final assessment support practical use of the material.

Course objectives

Explain the institutional framework and annual administration of the Australian tax system.
Apply the 2026–27 rate structures for resident individuals, working holiday makers, minors, deceased estates and non-residents.
Identify the principal Medicare levy, Medicare levy surcharge and Family Tax Benefit settings.
Apply the part-year residency and Higher Education Loan Program repayment rules presented in the material.
Distinguish company, trust, Australian business number and tax file number obligations.

Learning outcomes

You should be able to distinguish the policy role of the Treasury from the administrative role of the Australian Taxation Office.
You should be able to select and apply the appropriate 2026–27 rate table for common taxpayer categories.
You should be able to identify when Medicare, family payment and study-loan thresholds are relevant to a client review.
You should be able to calculate selected tax and repayment outcomes using the formulas and thresholds provided.
You should be able to identify key entity and registration issues that require further investigation or specialist advice.

Professional use

The tables and examples provide a structured starting point. The applicable legislation, taxpayer facts, eligibility conditions and administrative requirements must be considered before a position is adopted.

Practitioner toolkit

The following review prompts support day-to-day application of the material. They do not replace a complete legal and factual analysis.

Professional review checklist
Review area	Evidence or action
Tax administration	Confirm the entity, income year, accounting period, lodgement obligation and applicable due date.
PAYG collection	Distinguish amounts subject to withholding from business or investment income subject to instalments.
Individual rates	Identify residency, working holiday status, Division 6AA income and any deceased estate assessment provision before choosing a rate table.
Medicare and private health	Review taxable income, income for surcharge purposes, family status, dependants and hospital cover periods separately.
Family payments	Confirm care percentage, residence, child age, study, maintenance and adjusted taxable income conditions.
Residency	Separate resident and non-resident periods and retain the basis for counting resident months.
HELP	Reconcile repayment income components and compare the marginal formula with 10 per cent of total repayment income.
Companies and trusts	Document base rate entity conditions, trust entitlements, trustee assessment provisions and beneficiary TFN reporting.
ABN and TFN	Validate identifiers, apply no-ABN withholding where required, update ABR details and protect TFN information.

CPD/CPE compliance mapping

The mapping below identifies the professional competency areas the material supports. It does not constitute accreditation or a determination that the activity satisfies every member’s individual continuing professional development or continuing professional education requirements. Retain completion evidence and evidence of relevance to the services performed.

Lesson	CPA Australia	CA ANZ	IPA	Tax Practitioners Board
Lesson 1: Tax system foundations	Tax administration and technical competence	Tax and law technical competence	Technical and product knowledge	Knowledge of taxation law and administration
Lesson 2: Individual and estate rates	Personal taxation calculations	Tax compliance and professional judgement	Technical taxation knowledge	Correct application of taxation laws
Lesson 3: Medicare and family payments	Individual tax and related obligations	Tax and client advisory competence	Technical and advisory knowledge	Maintaining knowledge relevant to tax agent services
Lesson 4: Residency and study loans	Individual taxation and compliance	Tax law application and judgement	Technical and regulatory knowledge	Material client rights and obligations
Lesson 5: Entities and business identifiers	Entity taxation and compliance	Tax, law and governance competence	Technical and professional practice knowledge	Competent tax and BAS services