ASSIGNMENT 1 – SESSION 3 2019
Assessment Title: Assignment 1 BAS
Weighting: 15% of total marks for semester (75 Marks reduced to a grade out of 15)
Topic Content: Payroll, GST, & FBT (Topics 1 to 4)
Due Date: 5pm Friday of Week 5
Submission: ONE (1) EXCEL FILE USING THE TEMPLATE PROVIDED ONLY to be
submitted via the link on MySCU.
File Name: Must be in the format SURNAME Tax Assignment 1.xls/xlsx to be marked.
DO NOT SUBMIT PDF OR WORD FILES.
ONLY EXCEL FILES USING THE TEMPLATE PROVIDED WILL BE
OBJECTS AND FILES INSERTED INTO WORKSHEETS WILL NOT BE
Remember: The purpose of an assignment is for you to demonstrate your
knowledge and understanding of the topics. Make sure your answers are
comprehensive enough to achieve this.
NOTE: THIS IS AN INDIVIDUAL ASSIGNMENT
YOU SHOULD WRITE ALL WORK SUBMITTED YOURSELF AND IT SHOULD BE
BASED ON YOUR OWN RESEARCH. EVIDENCE OF COPYING FROM OTHER
STUDENTS OR ELSEWHERE WILL BE TAKEN SERIOUSLY AND REPORTED.
Tanya Tassle owns Born Again Bags, a not for profit business that is registered for GST. Born
Again Bags supports the diversion of post-consumer material (waste) into reusable bags to
replace plastic bags. Fabric is gathered or donated and made into cloth bags which are sold
to customers via an online shop.
Born Again Bags also receives income from donations and grants.
Receipts for the June quarter (inclusive of GST where appropriate):
|Sales of bags||$39,950|
|Trade-in of industrial sewing machine
previously used in the business
|Bags donated to local growers’ co-op
(market value $210)
Expenses for the June quarter (inclusive of GST where appropriate):
|Fabric and thread purchases||$9,900|
|Fabric donated (market value $3000)||$0|
|Subcontractors (not registered for GST)||$6,600|
|Lunch at local restaurant*||$230|
|Accommodation for staff at conferences (Hotel)||$1,870|
|Airfares for staff to attend conferences**||$3,850|
|First Aid courses for staff members||$550|
|New sewing machine||$4,399|
|Business Loan (Principal $450 and interest $50)||$500|
*Lunch at the local restaurant was for Tanya, the owner of Born Again Bags, and a
commercial garment manufacturer who donates waste fabric to the business. For income
tax purposes this amount would be classified as entertainment and a deduction would be
denied under s32-5 ITAA97.
**During the period Born Again Bags paid for air fares for staff to attend a conference in
Sydney where Tanya was speaking. Tanya was ill the week before the conference and could
not attend. Consequently, the staff did not attend either and $1,100 of the airfares
mentioned above were not used. The airline did not refund this amount.
Born Again Bags also imported labels from Canada. The cost of the labels was $550 and the
freight was $35 (Australian Dollars). The supplier in Canada did not charge GST on these
Salaries & Wages:
Born Again Bags has 6 employees: 2 office staff and 4 machinists. They are paid weekly. All
employees are entitled to the tax-free threshold.
Jenny, Kate, Lisa, and Martin are all permanent employees. Their weekly pay is based on an
annual salary: and paid salaries. Annual salaries are:
• Jenny: $39,000
• Kate: $23,920
• Lisa: $52,000
• Martin: $18,720
Naomi and Oscar are casual employees and their weekly wage is based on the hours they
work. Their work hours are set out in the table below.
|Week 1 – April||8||10|
|Week 2 – April||7||10|
|Week 3 – April||10||15|
|Week 4 – April||12||15|
|Week 5 – May||10||0|
|Week 6 – May||10||0|
|Week 7 – May||15||0|
|Week 8 – May||12||10|
|Week 9 – May||10||10|
|Week 10 – June||12||10|
|Week 11 – June||8||15|
|Week 12 – June||8||10|
|Week 13 – June||8||0|
Business Activity Statement:
The ATO has advised that Tanya Tassle, as an individual taxpayer, has a quarterly income tax
instalment of $3,200. This amount is payable by her personally in the June Quarter.
In the last FBT year Fringe Benefits were provided to the office manager. There is an FBT
instalment showing on the BAS of $2,400. No Fringe Benefits have been provided in the
current FBT year.
There are no liabilities for WET or LCT, and no fuel credits.
REQUIRED (with SUGGESTED TIMETABLE FOR COMPLETION):
a) WEEK 2: Prepare the schedule of payroll information for wages paid, including
PAYG withholding deductions, and net wages for each employee by week. (12
b) WEEK 2: Calculate the employer’s statutory Superannuation Guarantee obligations
for each employee for the quarter. (10 Marks)
c) WEEKS 3 and 4: Provide a short definition and discussion of GST taxable supplies.
Explain and classify each transaction item listed, including wages and
superannuation, by the type of GST supply, and calculate any GST included in the
price. (22 Marks)
d) WEEKS 3 and 4: Provide a short definition and discussion of creditable acquisitions
and discuss what conditions need to be met before Born Again Bags can claim
input tax credits in relation to the expenses listed? Explain whether each of the
acquisitions is a creditable acquisition. (16 Marks)
e) WEEK 5: Prepare a fully labelled Business Activity Statement for the quarter ended
30 June 2019. (7 Marks)
IF YOU FOLLOW THE SUGGESTED TIMETABLE FOR COMPLETION AND POST ANY
QUESTIONS FOR FEEDBACK ON THE DISCUSSION BOARD, IN THOSE WEEKS, THIS WILL
HELP YOU IN YOUR FINAL SUBMISSION.
Show all calculations and formulas, and support all answers with references to
legislation, case law and/or rulings. Up to eight (8) marks awarded for quality of
explanations & referencing.
END OF ASSIGNMENT INSTRUCTIONS