FNSTPB401: Complete Business Activity and Instalment Activity Statements

FNSTPB401
Complete business activity and

instalment activity statements
As part of FNS40217 - Certificate IV in Accounting and Bookkeeping
Prepared by Rochelle Arnolda (Accounting Trainer and Assessor)
1
Version : Nov-Dec 2020
Version : Nov-Dec 2020 2
Rochelle Arnolda
Trainer: in Accounting
Online class session:

Wednesday :11am
Trainer Consultation times (by email):

Wednesday 10.30am – 2.30pm

Today’s class
Assessment
Welcome Assessment Task 1 – Submission
Requirements Unit Content Referencing process
Written
Questions

Assessment Methods
Task 1 – Written Questions
14 Questions to be answered including sub parts
Task 2 – Project
Part A
16 Questions to be answered including sub parts
Part B
2 Questions

Please read your Session Plan (PDF) sent by email
FNSTPB401
(Unit Duration: 4 weeks )
Week Date Time Description
Online class session1 on ZOOM.

Week1 18-Nov-20 11:00 AM
Discuss all theory cocepts and Knowledge necessary to complete Task 1
Online class session 2 on ZOOM.

Week2 25-Nov-20 11:00 AM
Discuss Task 2 - Part A
Online class session 3 on ZOOM.

Week 3 2-Dec-20 11:00 AM
Discuss Task 2 - Part B
Week 4 9-Dec-20 Assessment submission to be made by 1.30pm the latest

FNSTPB401 Complete business activity and
instalment activity statements
Identify compliance and other requirements

applicable to business activity
Analyse and apply industry codes of conduct

associated with work activities
Review and apply goods and services tax

(GST) implications and code transactions
Report on payroll activities and amounts

withheld
Reconcile and prepare activity statement
Lodge activity statement

BAS Service
A BAS service is any service that relates to:
ascertaining liabilities, obligations or entitlements of an entity that arise,
or could arise, under a BAS provision
advising an entity about liabilities, obligations or entitlements of an
entity or another entity that arise, or could arise, under a BAS provision
representing an entity in their dealings with the Commissioner of Taxation
It is provided in circumstances where the entity can reasonably be expected

to rely on the service for either or both of the following purposes:
to satisfy liabilities or obligations that arise, or could arise, under a BAS
provision, or
claim entitlements that arise, or could arise, under a BAS provision.
A BAS service also includes a service that the Tax Practitioners Board has
declared, by way of a legislative instrument to be a BAS service.
Weblink : https://www.tpb.gov.au/terms-explained
8

Steps taken to research the professional and
legal requirements necessary to provide BAS
service
Speak to your trainer for advice and guidance
Research the Tax practitioner board website
Read the Tax Agent Services Act 2009
Read the ATO webpage for BAS Agents
Get membership in a professional bookkeeper's association
Join discussions in professional bookkeeper’s forums
Join LinkedIn groups for BAS Agents
Speak to professional accountants or bookkeepers known to you for advice
and guidance

Requirements of TPB to register as an individual BAS
Agent
You must be at least 18 years of age to be eligible to apply.
You must be a fit and proper person.
You must satisfy the qualification and experience requirements.
Item 101 - Accounting qualifications
- A Certificate IV Financial services (or a higher award) in bookkeeping or accounting
from a registered training organisation or an equivalent institution
- Board approved course in basic GST/BAS taxation principles (GST/BAS course)
- 1,400 hours of relevant experience in the past four years.
Item 102 - Membership of professional association

- A Certificate IV Financial services (or a higher award) in bookkeeping or accounting
from a registered training organisation or an equivalent institution
- Board approved course in basic GST/BAS taxation principles (GST/BAS course)
- A voting member of a recognised BAS or tax agent association
- 1,000 hours of relevant experience in the past four years.
10

Requirements of TPB to register as an
individual BAS Agent
You must maintain, or will be able to maintain, professional indemnity
insurance cover that meets our requirements.
You need to maintain a policy or have cover that meets your needs as well as our
requirements.
Read below weblink for the amounts to cover:
https://www.tpb.gov.au/professional-indemnity-insurance-bas-agents
Complete an online application and provide supporting documents.
Weblink: https://www.tpb.gov.au/register-individual-bas-agent
11
CPD requirements for a BAS Agent
BAS Agent need to complete a minimum of 45 hours of CPD within a standard

three-year registration period, with a minimum of five hours each year.
If you have a condition of fuel tax credits on your registration, you should
complete a minimum of six hours of CPE within a standard three year
registration period, with a minimum of two hours each year.
If your registration period is other than three years, you should complete CPE
on a pro-rata basis.
Weblink: https://www.tpb.gov.au/cpe-bas-agents

Purpose of the Tax Agent Services Act 2009
The object of the Tax Agent Services Act 2009 is to ensure that
tax agent services are provided to the public in accordance
with appropriate standards of professional and ethical conduct.
This is to be achieved by:
(a) establishing a national Tax Practitioners Board to register
tax agents, and BAS agents and tax (financial) advisers
(b) introducing a Code of Professional Conduct for registered
tax practitioners
(c) providing the TPB with access to a graduated range of
administrative
Weblink : https://www.tpb.gov.au/required-knowledge-tax-agent-
services-act-2009-tpb-information-sheet-tpbi-102011 13

BAS Service under TASA
BAS service is defined in the Tax Agent Services Act 2009
(TASA) as:
“ascertaining or advising about the liabilities,
obligations or entitlements of a client under a BAS
provision; or
representing a client in their dealings with the
Commissioner of Taxation in relation to a BAS provision;
and
where it is reasonable to expect a client will rely on the
service to satisfy liabilities or obligations or to claim
entitlements under a BAS provision”.
Weblink : https://www.tpb.gov.au/bas-services
14

Code of Professional Conduct for BAS agents
The five main principles under for the Code:

Honesty and integrity
Independence
Confidentiality
Competence
Other responsibilities
Please read the link below and describe each principle in detail when writing the
code of professional conduct for BAS Agents.
Link: https://www.tpb.gov.au/code-professional-conduct-bas-agents

Failing to comply with BAS agent obligations
Administrative sanctions for breach of the Code can include:
a written caution
an order requiring the tax practitioner to:
respond to requests and directions from the Board
complete a course of education or training we specify
only provide certain services
provide services only under supervision
suspension of registration for a certain period
termination of registration
The severity of a sanction depends on the nature and extent of the breach
and the individual circumstances of each case.
Link: https://www.tpb.gov.au/failing-comply-your-bas-agent-obligations
16

Failing to comply with BAS agent obligations
Court imposed civil penalty
There are several civil penalty provisions in the TASA relating to

certain conduct of registered tax practitioners, and certain activities
of those who are acting as unregistered tax practitioners.
The Federal Court has the power to impose penalties of up to $55,500
for individuals and $277,500 for corporations for each breach.
Link: https://www.tpb.gov.au/failing-comply-your-bas-agent-obligations
17

Acts relevant to fringe benefits tax (FBT) legislation
The fringe benefits tax (FBT) legislation consists of the following
Acts:
Fringe Benefits Tax Assessment Act 1986 establishes the rules
for assessing and collecting the tax. The Act is quite separate
from the income tax assessment Acts.
Fringe Benefits Tax Act 1986 imposes tax on the taxable value
of fringe benefits. Any change to the rate of tax is effected by
amending this Act.
Fringe Benefits Tax (Application to the Commonwealth) Act
1986 ensures that the FBT legislation also applies to Australian
Government authorities and departments.
Link: https://www.ato.gov.au/law/view/pdf/sos/fbtgemp20200129.pdf
18

How does Fringe Benefit tax (FBT)work?
FBT is paid by employers on certain benefits they provide to their
employees or their employees’ family or other associates. FBT applies
even if the benefit is provided by a third party under an arrangement
with the employer.
FBT is separate to income tax and is calculated on the taxable value of
the fringe benefit. The employer must self-assess their FBT liability for
the FBT year (that is, 1 April to 31 March) and lodge an FBT return.
Employers can generally claim an income tax deduction for the cost of
providing fringe benefits and for the FBT they pay. Employers can also
generally claim GST credits for items provided as fringe benefits.
Link:
https://www.ato.gov.au/General/fringe-benefits-tax-
(fbt)/#:~:text=FBT%20is%20paid%20by%20employers,value%20of%20the%20fringe%20be
nefit.
19

New Tax System (Goods and Services Tax) Act
1999A
Taxable supplies
As per the New Tax System (Goods and Services Tax) Act 1999A taxable supply is
if:
“(a) you make the supply for *consideration; and
(b) the supply is made in the course or furtherance of an
*enterprise that you *carry on; and
(c) the supply is *connected with the indirect tax zone; and
(d) you are *registered, or *required to be registered.
However, the supply is not a *taxable supply to the extent that it is *GST-free or
*input taxed”.

New Tax System (Goods and Services Tax) Act
1999A
Liability for GST on taxable supplies
The person who makes the “taxable supply” is responsible to pay the GST on the
supplies made.
The amount of GST on taxable supplies
The amount of GST on a *taxable supply is 10% of the *value of the taxable
supply.
Link: https://www.legislation.gov.au/Details/C2020C00067
21
Annual income tax
Income tax is payable for each year by everyone and company, and by
some other entities.
Individuals who are Australian residents, and some trustees, are also
liable to pay Medicare levy for each year. See the and Part VIIB of the
Income Tax Assessment Act 1936. Medicare Levy Act 1986
Income tax is imposed by the Income Tax Act 1986 and the other Acts
referred to in the definition of income tax in section 995-1.
Most entities must pay instalments of income tax before the income
tax they have to pay can be worked out.
Link: https://www.legislation.gov.au/Details/C2020C00321
22

PAYG Withholding
An employer must help the payees meet their end-of-year tax liabilities by
collecting pay as you go (PAYG) withholding amounts from payments made to:
employees
other workers, such as contractors, that you have voluntary agreements with
businesses that don't quote their Australian business number (ABN).
Business must register for PAYG withholding before first making a payment
that is subject to withholding. This is required even if you don't withhold an
amount from a payment made.
If you cease to be an employer, you should cancel your PAYG withholding
registration.
Before you enter into a work agreement or contract, you need to check that
the worker is legally allowed to work in Australia.
PAYG withholding is different to payroll tax, which is a state tax.
Weblink: https://www.ato.gov.au/Business/PAYG-withholding/ 23

Wine equalisation tax
If the business make wine, import wine into Australia or sell it by

wholesale, you'll generally have to account for wine equalisation tax
(WET).
WET is a tax of 29% of the wholesale value of wine. It is generally only
payable if you are registered or required to be registered for GST.
It's designed to be paid on the last wholesale sale of wine, which is
usually between the wholesaler and retailer. WET may apply in other
circumstances – such as cellar door sales or tastings – where there
hasn't been a wholesale sale. WET is also payable on imports of wine
(whether you are registered for GST).
Weblink: https://www.ato.gov.au/business/wine-equalisation-
tax/#:~:text=If%20you%20make%20wine%2C%20import,to%20be%20registe
red%20for%20GST
24

Luxury car tax
Luxury car tax (LCT) is a tax on cars with a GST-inclusive value above the LCT
threshold.
LCT is imposed at the rate of 33% on the amount above the luxury car
threshold.
LCT is paid by businesses that sell or import luxury cars (dealers), and also by
individuals who import luxury cars.
Weblink: https://www.ato.gov.au/business/luxury-car-tax/

Fuel Tax
Fuel tax credits provide businesses with a credit for the fuel tax
(excise or customs duty) that's included in the price of fuel used in
machinery, plant, equipment, heavy vehicles, light vehicles travelling
off public roads or on private roads.
The amount depends on when you acquire the fuel, what fuel you use
and the activity you use it in. Fuel tax credits rates also change
regularly so it's important to check the rates each time you do your
business activity statement (BAS).
Some fuels and activities are not eligible including fuel you use in
light vehicles of 4.5 tones gross vehicle mass (GVM) or less, travelling
on public roads.
Weblink: https://www.ato.gov.au/Business/Fuel-schemes/Fuel-tax-credits---
business/
26
ATO PAYG lodgment and Payment schedule
Read the below website for the final date for lodgment and payments
https://www.ato.gov.au/business/business-activity-statements-(bas)/due-dates-
for-lodging-and-paying-your-bas/
You need to find out the lodgement dates separate four categories:
- Monthly activity statements
- Quarter PAYG instalment activity statement for head companies of
consolidated groups
- Quarter activity statements lodged electronically
- All other Quarter activity statements

ATO’s privacy policy regarding collection of
information of Taxpayers
Read and write the answer in your own words.
https://www.ato.gov.au/About-ATO/Commitments-and-reporting/In-
detail/Privacy-and-information-gathering/Privacy-policy/
https://www.ato.gov.au/About-ATO/Commitments-and-
reporting/Information-and-privacy/Your-privacy/?=redirected_privacy

Cash basis and Non-cash (accruals) basis of accounting
for GST
Cash basis of accounting for GST
If you account for GST on a cash basis, you must: account for the GST payable on
your sales in the tax period you receive payment for them. If you receive only part
payment for a sale in a tax period, you account for only the GST that relates to
the part payment in that tax period.
Claim GST credits for your business purchases in the tax period you pay for them.
If you pay only part of the cost of a business purchase in a tax period and have a
valid tax invoice, you claim only the GST credit for that part of the cost in that tax
period.
To claim a GST credit for a purchase that cost more than $82.50 (including GST),
you must have a valid tax invoice at the time you lodge your activity statement. If
you do not have a valid tax invoice, you should wait until you receive one from
your supplier before you claim the GST credit, even if this is in a later tax period.
Weblink:
https://www.ato.gov.au/uploadedFiles/Content/ITX/downloads/bus13266n3136_0520
13.pdf
29

Cash basis and Non-cash (accruals) basis of
accounting for GST
Non-cash (accruals) basis of accounting for GST
If you account for GST on a non-cash basis, you will account for all GST payable
and all GST credits in your activity statement for the earlier of either:
the first tax period in which an invoice is issued relating to that sale
the first tax period in which any of the payment is received or made
Weblink:
https://www.ato.gov.au/uploadedFiles/Content/ITX/downloads/bus13266n3136_
052013.pdf
30

GST
Goods and services tax (GST) is a broad-based tax of 10% on most goods, services
and other items sold or consumed in Australia.
Weblink: https://www.ato.gov.au/business/gst/
GST-free
You don't include GST in the price if your product or service is GST-free. You can
still claim credits for the GST included in the price of purchases you use to make
your GST-free sales.
Weblink: https://www.ato.gov.au/business/gst/when-to-charge-gst-(and-when-
not-to)/gst-free-sales/
Input taxed
There are input taxed sales and input taxed purchases. Input taxed sales are
things like interest income, dividend income, or residential income. Input taxed
purchases are expenses related to any input taxed sales.
31
No tax (not reportable)
Purchases with no GST in the price or where no GST credits can be claimed.
You do not need to report these purchases. You can use this information to
assist in identifying your purchases with no GST in the price or where no GST
credits can be claimed
Input-taxed sales
Input-taxed sales are sales of goods and services that don't include GST in the
price. You can't claim GST credits for the GST included in the price of your
'inputs’. The most common input-taxed sales are financial supplies (such as
lending money or the provision of credit for a fee) and selling or renting out
residential premises.
Weblink: https://www.ato.gov.au/business/gst/when-to-charge-gst-(and-when-
not-to)/input-taxed-
sales/#:~:text=Input%2Dtaxed%20sales%20are%20sales,include%20GST%20in%
20the%20price.&text=The%20most%20common%20input%2Dtaxed,or%20renti
ng%20out%20residential%20premises.
32
Exports and GST
GST is a broad-based tax of 10% on most goods, services and other items sold
or consumed in Australia (the indirect tax zone) and on most imports of
goods.
Exports of goods and services from Australia are generally GST-free. If you're
registered for GST, this means:
you don't include GST in the price of your exports
you can still claim credits for the GST included in the price of purchases you use
to make your exported goods and services.
Weblink:
https://www.ato.gov.au/business/international-tax-for-business/australians-
doing-business-overseas/exports-and-gst/

ATO requirements to register for GST
If business is not registered for GST, check each month to see if reached the
threshold, or are likely to exceed it. Need to register within 21 days of GST
turnover exceeding the relevant threshold.
Must register for GST:
when business or enterprise has a GST turnover (gross income minus GST) of
$75,000 or more
when start a new business and expect turnover to reach the GST threshold (or
more) in the first year of operation
if already in business and have reached the GST threshold
if non-profit organization has a GST turnover of $150,000 per year or more
when provide taxi or limousine travel for passengers (including ride-sourcing)
regardless of your GST turnover – this applies to both owner drivers and if lease or
rent a taxi
if want to claim fuel tax credits for business or enterprise.
Registering for GST is optional if business or enterprise doesn’t fit into one of
these categories. If choose to register, generally must stay registered for at least
12 months.
Link: https://www.ato.gov.au/Business/GST/Registering-for-GST/
34

Unit of Competency
The result will be ‘Competent’ (C) or ‘Not Yet Competent’ (NYC)
To achieve a ‘Competent’ result for the unit BOTH Assessment

tasks and ALL Questions in them need to be fully completed with
100% Accuracy.
i.e. if you have not answered ONLY 1 question or the answer for
ONLY 1 question is incorrect still your result will be NYC.
If I give feedback / Comments and request, you to amend your

assessment submission, it is Mandatory that you do so to achieve
a Competent result or I will mark you as Not Yet Competent.
How to Completely reference an
Assessment
All assessments need to be correctly referenced including an

- In text reference (references written in the body of the assessments)
- Reference page (only 1 page at the end of the assessment. Must include all in
text references)
Assessments that are not correctly referenced will be Marked as Plagiarised

leading to ‘Not Yet Competent’ or NYC
You need to reference all material sources from class notes and websites

How to write References in text reference:
The name of the author/ organization responsible for the website and the
date created or last revised the website:
Can be written in two ways
Eg:
It is essential that all financial institutes disclose all the product
information enabling clients to make an informed decision.
(Product Disclosure Statements 2020)
OR
As stated in the Australian Tax Office 2020 “taxable income is the
income you have to pay tax on. It is the term used for the amount
left after you have deducted all the expenses you can claim from
your assessable income”.

How to write References in reference list :
Please follow the below format to reference

(1) (2) (3)
[Heading of the topic or web page], [Year article was written]., <weblink>,
(4)
(date article was viewed)
Example:
(1) (2) (3)
Product Disclosure Statements (2020), <https://moneysmart.gov.au/glossary/product-
disclosure-statement-pds >, (viewed 19th May 2020) (4)

A guide to answering short answer
questions
The length of your answers will be guided by the description in each

assessment:
Short answers: 50 words

Short report: 500 words
Mid Report: 1000 words

Terminology used in the questions – how to respond
If you are asked to You should
LIST In bullet points, numbered points provide the amount

IDENTIFY asked in the question.
If no amount specified, 3 is always good.
DESCRIBE In paragraph form, give a full account of an event, idea

DISCUSS or concept – include ALL relevant information (Minimum
WHAT 50 words).
**If need to describe each listed point minimum 25
words each for each point description
EXPLAIN In paragraph form, describe in enough detail to clarify –
an idea, concept, situation, insight or challenge
(Minimum 50 words).
**If need to describe each listed point minimum 25
words each for each point description
DEFINE
In paragraph form, explain the meaning of a term or
40
concept (Minimum 50 words).

Terminology used in the questions – how to
respond
If you are asked to You should
STATE (name) That is a tree; the Privacy Policy 1988; Consumer laws
SUGGEST What are possible answers in either paragraph or bullet
points
OUTLINE In paragraph form, provide the main points of your

idea, concept, situation, insight or challenge (Minimum
50 words).
SUMMARISE In paragraph form, explain the key points or insights
derived from a text, event or situation (Minimum 50
words).
COMPARE List, describe or explain the similarities and differences
between two (or more) ideas, concepts, events,
situations, challenges or insights
Cheating is not acceptable
Anyone caught cheating will automatically be excluded under the
disciplinary Rules and their opportunity for assessment will be
subject to the outcome of an appeal process or disciplinary hearing.
Types of cheating include:

Plagiarism: (copy and paste) this is considered cheating as you
are trying to use someone else’s words as your own. Direct
quotes are acceptable as long as you reference the quote and
use “” marks.
Collusion: this is working with someone else on an INDIVIDUAL

assessment and submitting the same assessment.
Cheating: Copying from another learner with or without their

permission
Picture from Dr Elson 2018

Submission Due Date
Final day for submissions is Wednesday 9th

December 2020 at 5 pm.
All Assessments NOT submitted to Turnitin by Wednesday

9th December 2020 at 5 pm will receive a NYC (FAIL)
unless taken prior permission.
NO Assessment submission will be Accepted by EMAIL.
Do not leave your assessment to the last hour before

submission
43

Requirements for a satisfactory submission
Type up your assessment answers using the provided template/s
MUST include a reference page, references to the material is

provided, you need to add your additional sources if applicable
All Assessments to be Submitted through Turnitin
NO cheating do not copy someone else’s work , It will NOT be

Accept it and you may receive a NYC

Name Assessment Answer Booklet as per
Institute requirement
Please SAVE your assessment Answer Booklet as:
Student ID _ Student Name _ unit code
E.g.
SPI 11111 _ Your Name (As per your student identity)_ FNSACC408
SHIC11111 _ Your name (As per your student identity)_ FNSACC408

Assessment Time


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FNSTPB401

Complete business activity and

As part of FNS40217 - Certificate IV in Accounting and Bookkeeping

Prepared by Rochelle Arnolda (Accounting Trainer and Assessor)

Online class session:

Trainer Consultation times (by email):

Version : Nov-Dec 2020 3

Version : Nov-Dec 2020 4

Version : Nov-Dec 2020 5

Week Date Time Description

Online class session1 on ZOOM.

Online class session 2 on ZOOM.

Online class session 3 on ZOOM.

Week 4 9-Dec-20 Assessment submission to be made by 1.30pm the latest

Version : Nov-Dec 2020

Identify compliance and other requirements

Analyse and apply industry codes of conduct

Review and apply goods and services tax

Report on payroll activities and amounts

Reconcile and prepare activity statement

Lodge activity statement

Version : Nov-Dec 2020 7

It is provided in circumstances where the entity can reasonably be expected

Version : Nov-Dec 2020

Version : Nov-Dec 2020 9

Item 102 - Membership of professional association

Version : Nov-Dec 2020

Complete an online application and provide supporting documents.

BAS Agent need to complete a minimum of 45 hours of CPD within a standard

Version : Nov-Dec 2020 12

Version : Nov-Dec 2020

Version : Nov-Dec 2020

The five main principles under for the Code:

Version : Nov-Dec 2020 15

Version : Nov-Dec 2020

Court imposed civil penalty

There are several civil penalty provisions in the TASA relating to

Version : Nov-Dec 2020

Version : Nov-Dec 2020

Version : Nov-Dec 2020

Version : Nov-Dec 2020 20

The amount of GST on taxable supplies

Version : Nov-Dec 2020

Version : Nov-Dec 2020

If the business make wine, import wine into Australia or sell it by

Version : Nov-Dec 2020

Version : Nov-Dec 2020 25

Version : Nov-Dec 2020 27

Read and write the answer in your own words.

Version : Nov-Dec 2020 28

Version : Nov-Dec 2020

Version : Nov-Dec 2020

Version : Nov-Dec 2020 33

Version : Nov-Dec 2020

The result will be ‘Competent’ (C) or ‘Not Yet Competent’ (NYC)

To achieve a ‘Competent’ result for the unit BOTH Assessment

If I give feedback / Comments and request, you to amend your

All assessments need to be correctly referenced including an

Assessments that are not correctly referenced will be Marked as Plagiarised

Version : Nov-Dec 2020 36

Version : Nov-Dec 2020 37

Please follow the below format to reference

Version : Nov-Dec 2020 38