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Q001 | CGT | Capital loss via reduced cost base – shares | Income tax (CGT) | 2023-24 | easy | ["ITAA 1997 s 104-10", "ITAA 1997 s 110-55", "ITAA 1997 s 102-10"] | https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-guide-2024/about-capital-gains-tax/how-to-work-out-your-capital-gain-or-capital-loss | In July 1997 Tobias bought 1,000 shares at $4 per share and incurred brokerage and stamp duty of $120. In December 2023 he sold all 1,000 shares for $3 per share, incurring brokerage of $60. His reduced cost base is the purchase price $4,000 plus $120 (1997 brokerage and stamp duty) plus $60 (2023 brokerage) = $4,180, ... | $590 | -$1,180 | $1,180 | $7,180 | C | $1,180 | 1,180 | AUD | Reduced cost base = 4,000 (1,000 x $4) + 120 (1997 brokerage/stamp duty) + 60 (2023 brokerage) = 4,180 → Capital proceeds = 1,000 x $3 = 3,000 → Capital loss = reduced cost base - capital proceeds = 4,180 - 3,000 = 1,180 | {"$590": "Wrongly halved the loss as if a 50% discount applied (discounts never apply to losses)", "-$1,180": "Subtracted in the wrong order, giving a negative (a gain instead of a loss)", "$1,180": "Correct answer", "$7,180": "Added proceeds to the reduced cost base instead of subtracting"} | {"formula": "reduced_cost_base - capital_proceeds", "params": {"reduced_cost_base": 4180, "capital_proceeds": 3000}, "expected": 1180.0} |
Q002 | Individual income tax | Net tax: 2024-25 Stage 3 brackets + 2% Medicare levy - LITO | Income tax (individual) | 2024-25 | hard | ["ITAA 1997 s 4-10", "Income Tax Rates Act 1986 Sch 7", "ITAA 1936 s 159N", "Medicare Levy Act 1986 s 6"] | https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents | Leah is an Australian resident for all of 2024-25 with a taxable income of $40,000, single with no dependants. From 1 July 2024 the Stage 3 rates apply: $18,201 - $45,000 is taxed at 16c for each $1 over $18,200 (the old 19c rate no longer applies). Add the 2% Medicare levy on taxable income, then subtract the low inco... | $3,713 | $4,367 | $2,913 | $4,288 | A | $3,713 | 3,713 | AUD | 2024-25 Stage 3 bracket: tax = (40,000 - 18,200) x 0.16 = 21,800 x 0.16 = 3,488. → Medicare levy = 40,000 x 0.02 = 800. → LITO (37,501-45,000 band) = 700 - (40,000 - 37,500) x 0.05 = 700 - 125 = 575. → Net tax = 3,488 + 800 - 575 = 3,713. | {"$3,713": "Correct answer", "$4,367": "Used the pre-Stage-3 19c rate (2023-24 and earlier) instead of the 16c rate that applies from 2024-25", "$2,913": "Forgot to add the 2% Medicare levy", "$4,288": "Forgot to subtract the low income tax offset (LITO)"} | {"formula": "(taxable_income - bracket_floor) * marginal_rate + taxable_income * medicare_rate - (lito_max - (taxable_income - lito_taper_start) * lito_taper_rate)", "params": {"taxable_income": 40000, "bracket_floor": 18200, "marginal_rate": 0.16, "medicare_rate": 0.02, "lito_max": 700, "lito_taper_start": 37500, "lit... |
Q003 | Employment | Genuine redundancy – tax-free limit exceeds whole payment (17 years) | Income tax (employment termination) | 2023-24 | easy | ["ITAA 1997 s 83-170", "ITAA 1997 s 83-175"] | https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/when-a-worker-leaves-your-business/taxation-of-termination-payments/redundancy-and-early-retirement | Priya is 46 and started working for HJK Pty Ltd on 5 July 2001. She is made redundant effective 20 August 2023 because the company merged and her role was no longer needed. Priya is paid 2 weeks for each of her 22 years of service based on weekly earnings of $2,090 (approximately 2 × $2,090 × 22 = $92,000). She is rece... | $17,979 | $131,868 | $143,853 | $92,000 | C | $143,853 | 143,853 | AUD | Tax-free limit = base + (service × years) = 11,985 + (5,994 × 22) → = 11,985 + 131,868 = 143,853 → As Priya's redundancy payment ($92,000) is less than the tax-free limit ($143,853), the whole payment is tax-free | {"$17,979": "Added only one year's service amount instead of multiplying by 22 years", "$131,868": "Omitted the base amount and counted only the service component", "$143,853": "Correct answer", "$92,000": "Assumed the tax-free limit equals the redundancy payment actually received ($92,000)"} | {"formula": "base + service*years", "params": {"base": 11985, "service": 5994, "years": 22, "payment": 92000}, "expected": 143853.0} |
Q004 | Employment | Genuine redundancy – tax-free limit (base + service × years) | Income tax (employment termination) | 2023-24 | easy | ["ITAA 1997 s 83-170", "ITAA 1997 s 83-175"] | https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/when-a-worker-leaves-your-business/taxation-of-termination-payments/redundancy-and-early-retirement | Darren is a 57-year-old operations director who has worked for Coral Bay Freight for 14 years. In 2023-24 Coral Bay Freight is acquired by a larger group that already has an operations director, so Darren's position is no longer needed and his employment is terminated. He accepts a redundancy and is paid $270,000, of w... | $95,901 | $17,979 | $251,706 | $83,916 | A | $95,901 | 95,901 | AUD | Genuine redundancy tax-free limit = base amount + (service amount × years of service) → For the 2023-24 income year: base amount = $11,985, service amount = $5,994 → Tax-free part = 11,985 + (5,994 × 14) = 11,985 + 83,916 = 95,901 | {"$95,901": "Correct answer", "$17,979": "Added only one year's service amount instead of multiplying by the 14 years of service", "$251,706": "Multiplied the base amount by years of service as well (the base amount is not multiplied)", "$83,916": "Omitted the base amount and counted only the service component"} | {"formula": "base + service*years", "params": {"base": 11985, "service": 5994, "years": 14, "payment": 205000}, "expected": 95901.0} |
Q005 | Division 7A & Company Tax | Company income tax payable after franking tax offset (30% rate) | Income tax (company) | 2014-15 | medium | ["ITAA 1997 s 4-10", "ITAA 1997 s 207-20"] | https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/in-detail/utilising-franking-tax-offsets-and-effect-on-losses-corporate-tax-entities | In the 2014-15 income year Company K has assessable income of $750 ($175 franked dividend, $75 franking credit gross-up and $500 other income) and $250 of allowable deductions, giving taxable income of $500. It applies the 30% company tax rate and is entitled to a $75 franking tax offset for the franking credit. Income... | $225 | $50 | $75 | $150 | C | $75 | 75 | AUD | Taxable income = 750 assessable income - 250 deductions = 500 → Gross income tax = 500 x 30% = 150 → Apply $75 franking tax offset: 150 - 75 = 75 income tax payable | {"$225": "Added the franking credit to the tax instead of offsetting it", "$50": "Used the 25% base-rate-entity rate instead of the 30% rate that applies here", "$75": "Correct answer", "$150": "Forgot to apply the $75 franking tax offset against the gross tax"} | {"formula": "taxable_income * tax_rate - franking_offset", "params": {"taxable_income": 500, "tax_rate": 0.3, "franking_offset": 75}, "expected": 75.0} |
Q006 | Individual income tax | Low and middle income tax offset (LMITO) taper-down | Income tax offset | 2021-22 | medium | ["ITAA 1936 s 159N", "ITAA 1997 s 61-575"] | https://www.ato.gov.au/forms-and-instructions/low-and-middle-income-earner-tax-offsets | Hugo's taxable income is $99,000 for 2021-22. As his income is more than $90,000 but less than $126,000, his low and middle income tax offset (LMITO) is the full amount of $1,500 minus 3 cents for every dollar his income is above $90,000.
What is Hugo's low and middle income tax offset (LMITO) amount for 2021-22?
A. ... | -$1,470 | $825 | $1,500 | $1,230 | D | $1,230 | 1,230 | AUD | Kept taxable income within the 2021-22 LMITO taper-down band ($90,001-$126,000) → LMITO above $90,000 = $1,500 minus 3 cents for every $1 above $90,000 → Income above the taper start = 99,000 - 90,000 = 9,000 → Reduction = 9,000 x 0.03 = 270 → LMITO = 1,500 - 270 = 1,230 | {"-$1,470": "Applied the 3c taper to the whole taxable income instead of only the amount over $90,000", "$825": "Used the 7.5c phase-in rate (for the $37,000-$48,000 band) instead of the 3c phase-out rate", "$1,500": "Gave the full $1,500 LMITO without applying the 3c taper above $90,000", "$1,230": "Correct answer"} | {"formula": "max_offset - (taxable_income - taper_start) * taper_rate", "params": {"taxable_income": 99000, "max_offset": 1500, "taper_start": 90000, "taper_rate": 0.03}, "expected": 1230.0} |
Q007 | Employment | Work-related car – cents per kilometre method (rate × business km, 5,000 km cap) | Income tax (work-related deduction) | 2025-26 | easy | ["ITAA 1997 s 28-25", "ITAA 1997 s 8-1"] | https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/cars-transport-and-travel/motor-vehicle-and-car-expenses/expenses-for-a-car-you-own-or-lease/cents-per-kilometre-method | Once per week Mateo makes a 33-kilometre round trip in his own car from his city head office to meet clients, and once per month he makes a 118-kilometre round trip to clients at another location. For 2025-26 his diary shows he made 46 weekly client trips (46 × 33 km = 1,518 km) and 12 monthly client trips (12 × 118 km... | $2,485 | $4,400 | $2,708 | $2,804 | D | $2,804 | 2,804 | AUD | Work-related kilometres = (46 × 33) + (12 × 118) + 252 = 1,518 + 1,416 + 252 = 3,186 km → 3,186 km is below the 5,000 km cap, so all of it is claimable → Deduction = 3,186 × $0.88 (2025-26 rate) = $2,804 | {"$2,485": "Used the 2022-23 rate of 78 cents instead of the 2025-26 rate", "$4,400": "Claimed the full 5,000 km cap regardless of the actual 3,186 km travelled", "$2,708": "Used the 2023-24 rate of 85 cents instead of the 2025-26 rate of 88 cents", "$2,804": "Correct answer"} | {"formula": "round(min(business_km, 5000) * rate)", "params": {"business_km": 3186, "rate": 0.88, "prior_rate": 0.85, "rate_2223": 0.78}, "expected": 2804.0} |
Q008 | FBT | Type 1 gross-up of a single car fringe benefit (2.0802) | Fringe benefits tax (car fringe benefits) | 2023-24 | easy | ["FBTAA 1986 s 5B", "FBTAA 1986 s 57A"] | https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2024-instructions/worked-examples-not-for-profit-employers-completing-your-fbt-return | Goldenfields Mission, a public benevolent institution registered for GST, provides Rosa with a car fringe benefit valued at $3,500 using the statutory formula method. This is a type 1 benefit because the institution is entitled to a GST credit for the provision of the benefit. The type 1 gross-up rate is 2.0802.
What ... | $7,280.70 | $3,500.00 | $3,421.93 | $6,603.80 | A | $7,280.70 | 7,280.7 | AUD | The car fringe benefit is a type 1 benefit (GST credit available), so use the higher gross-up rate 2.0802 → 3,500 x 2.0802 = 7,280.70 | {"$7,280.70": "Correct answer", "$3,500.00": "Reported the taxable value without grossing it up", "$3,421.93": "Applied the 47% FBT rate at the gross-up step instead of producing the grossed-up amount", "$6,603.80": "Used the type 2 gross-up rate 1.8868 instead of the type 1 rate 2.0802"} | {"formula": "car_value * type1_rate", "params": {"car_value": 3500, "type1_rate": 2.0802, "type2_rate": 1.8868}, "expected": 7280.7} |
Q009 | Employment | Working from home – fixed rate method (cents per hour × hours) | Income tax (work-related deduction) | 2024-25 | easy | ["ITAA 1997 s 8-1", "PCG 2023/1"] | https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/working-from-home-expenses/fixed-rate-method | Naomi is an employee engineer. During 2024-25 she works from home and uses her timesheets to record the hours she spends working from home. At the end of the income year she works out she worked at home for a total of 1,126 hours. She incurs electricity, internet and mobile phone expenses while working from home. For 2... | $586 | $1,126 | $788 | $754 | C | $788 | 788 | AUD | Fixed rate for 2024-25 = 70 cents per work hour → Deduction = hours worked from home × rate per hour → = 1,126 × $0.70 = $788 | {"$586": "Used the old 52 cents per hour rate (2020-21/2021-22)", "$1,126": "Reported the number of hours as the deduction without multiplying by the hourly rate", "$788": "Correct answer", "$754": "Used the 2022-23/2023-24 rate of 67 cents instead of the 2024-25 rate of 70 cents"} | {"formula": "round(hours * rate)", "params": {"hours": 1126, "rate": 0.7, "prior_rate": 0.67, "rate_5253": 0.52}, "expected": 788.0} |
Q010 | Depreciation | Immediate deduction – low-cost asset costing $300 or less (apportioned for private use) | Income tax (capital allowances, Div 40) | 2019-20 | medium | ["ITAA 1997 s 40-80(2)"] | https://www.ato.gov.au/forms-and-instructions/depreciating-assets-guide-2020/deductions-for-the-cost-of-depreciating-assets/working-out-decline-in-value/immediate-deduction-for-certain-non-business-depreciating-assets-costing-300-or-less | Hassan buys a noise-cancelling headset for $220. He uses it 75% of the time for managing his (non-business) share portfolio and 25% of the time for private purposes. Because he uses it more than 50% of the time to produce non-business assessable income, and it cost $300 or less, he qualifies for an immediate deduction ... | $55.00 | $165.00 | $219.75 | $220.00 | B | $165.00 | 165 | AUD | Cost is $300 or less and the asset is used >50% for producing non-business assessable income, so an immediate deduction applies → Deduction is reduced for the 25% non-taxable (private) use: taxable use = 75% → Immediate deduction = 220 x 75% = 165 | {"$55.00": "Apportioned by the 25% private-use percentage instead of the 75% taxable-use percentage", "$165.00": "Correct answer", "$219.75": "Subtracted the 0.25 fraction from the cost instead of multiplying", "$220.00": "Claimed the full $220 cost, ignoring the 25% private-use reduction"} | {"formula": "cost * taxable_pct", "params": {"cost": 220, "taxable_pct": 0.75, "private_pct": 0.25}, "expected": 165.0} |
Q011 | Study and training loans | Compulsory repayment – 2025-26 top band (10% of total repayment income, $179,286+) | Study and training support loan – compulsory repayment | 2025-26 | medium | ["Higher Education Support Act 2003 s 154-1", "Higher Education Support Act 2003 s 154-20"] | https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds | In the 2025-26 financial year Ananya has a taxable income of $224,500 and reportable super contributions of $26,930, giving a repayment income of $251,430. This is above $179,286, so the repayment is 10% of her total repayment income (the ATO rounds the result to the nearest dollar).
What is Ananya's compulsory study ... | $37,714.50 | $7,214.40 | $30,193.10 | $25,143.00 | D | $25,143.00 | 25,143 | AUD | Repayment income = 224,500 + 26,930 = 251,430, which is at or above $179,286 (the same top band as the base example) → In the top band the repayment is 10% of the whole repayment income, not a marginal amount → Compulsory repayment = 251,430 x 10% = 25,143.00, rounded to 25,143 | {"$37,714.50": "Used the 15% first-band rate instead of the 10% top-band rate", "$7,214.40": "Applied 10% only to income above $179,286 instead of to the whole repayment income", "$30,193.10": "Used the $8,700 + 17c band instead of the 10% top band", "$25,143.00": "Correct answer"} | {"formula": "round(repayment_income * rate)", "params": {"repayment_income": 251430, "rate": 0.1, "threshold": 179286, "lower_base": 8700, "lower_threshold": 125000, "lower_rate": 0.17}, "expected": 25143.0} |
Q012 | Individual income tax | Income tax payable in the 19c bracket plus Medicare levy | Income tax (individual) | 2023-24 | easy | ["ITAA 1997 s 4-10", "Income Tax Rates Act 1986 Sch 7", "Medicare Levy Act 1986 s 6"] | https://www.ato.gov.au/forms-and-instructions/foreign-income-tax-offset-rules-guide-2024/calculate-your-fito-or-offset-limit | Priya is an Australian resident for the year ended 30 June 2024 with a taxable income of $36,500. The ATO works out the tax payable on her taxable income, stating the amount includes the Medicare levy. For 2023-24 the second resident bracket is 19c for each $1 over $18,200, and the Medicare levy is 2% of taxable income... | $3,843 | $7,665 | $4,207 | $3,477 | C | $4,207 | 4,207 | AUD | Kept taxable income within the 2023-24 $18,201-$45,000 bracket (19c for each $1 over $18,200) → Tax on income = (36,500 - 18,200) x 0.19 = 18,300 x 0.19 = 3,477 → Medicare levy = 36,500 x 0.02 = 730 → Tax payable incl Medicare levy = 3,477 + 730 = 4,207 | {"$3,843": "Charged the Medicare levy only on income above the tax-free threshold instead of on the whole taxable income", "$7,665": "Applied the 19% rate to the whole income instead of only the amount over the $18,200 tax-free threshold", "$4,207": "Correct answer", "$3,477": "Forgot to add the 2% Medicare levy"} | {"formula": "(taxable_income - bracket_floor) * marginal_rate + taxable_income * medicare_rate", "params": {"taxable_income": 36500, "bracket_floor": 18200, "marginal_rate": 0.19, "medicare_rate": 0.02}, "expected": 4207.0} |
Q013 | Superannuation | Carry-forward concessional cap headroom after employer SG and personal deductible contributions | Superannuation (concessional contributions cap) | 2024-25 | medium | ["ITAA 1997 s 291-20", "ITAA 1997 s 291-25", "ITAA 1997 s 290-150"] | https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap | In 2024-25 Nadia has $18,000 of carried-forward unused concessional cap (her total super balance at 30 June 2024 was below $500,000, so she can use it). Her employer pays $9,500 of super guarantee concessional contributions during the year, and she makes a $6,000 personal contribution for which she will claim a tax ded... | $42,000 | $30,000 | $14,500 | $32,500 | D | $32,500 | 32,500 | AUD | Available concessional cap = carried-forward unused 18,000 + 2024-25 standard cap 30,000 = 48,000 → Concessional contributions already used = employer SG 9,500 + personal deductible contribution 6,000 = 15,500 → Remaining headroom = 48,000 − 15,500 = 32,500 | {"$42,000": "Forgot to count the $9,500 employer SG against the cap", "$30,000": "Used the 2021-22 cap of $27,500 instead of the 2024-25 cap of $30,000", "$14,500": "Ignored the $18,000 carried-forward unused concessional cap", "$32,500": "Correct answer"} | {"formula": "(carry_forward + cc_cap) - (sg + personal_deductible)", "params": {"carry_forward": 18000, "cc_cap": 30000, "sg": 9500, "personal_deductible": 6000, "old_cap": 27500}, "expected": 32500.0} |
Q014 | Individual income tax | Part-year resident pro-rated tax-free threshold (newcomer) | Income tax (individual) | 2024-25 | medium | ["Income Tax Rates Act 1986 s 20", "Income Tax Rates Act 1986 s 16"] | https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/coming-to-australia/tax-free-threshold-for-newcomers-to-australia | Sanjay became an Australian resident for tax purposes on 12 October, so his tax-free threshold is apportioned for 9 of the 12 months in the income year (including the month he arrived). A part-year resident's tax-free threshold is a flat $13,464 plus an additional $4,736 apportioned for the number of resident months.
... | $13,650 | $18,200 | $17,016 | $13,464 | C | $17,016 | 17,016 | AUD | Kept resident_months within the valid 1-12 month range (9 of 12 months) → Flat component = $13,464 → Apportioned component = ($4,736 x 9) / 12 = 42,624 / 12 = 3,552 → Tax-free threshold = 13,464 + 3,552 = 17,016 | {"$13,650": "Apportioned the whole $18,200 threshold instead of only the $4,736 component", "$18,200": "Gave the full $4,736 additional amount instead of apportioning it for 9 months", "$17,016": "Correct answer", "$13,464": "Used only the flat $13,464 and ignored the apportioned component entirely"} | {"formula": "flat_amount + apportioned_amount * resident_months / total_months", "params": {"flat_amount": 13464, "apportioned_amount": 4736, "resident_months": 9, "total_months": 12}, "expected": 17016.0} |
Q015 | Superannuation | Super co-contribution – maximum entitlement | Superannuation (government co-contribution) | 2023-24 | easy | ["Superannuation (Government Co-contribution for Low Income Earners) Act 2003 s 9", "Superannuation (Government Co-contribution for Low Income Earners) Act 2003 s 10"] | https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/government-super-contributions/super-co-contribution | In the current financial year Rosa earns $34,000, which is at or below the lower income threshold. She pays $42.30 per fortnight from her take-home (after-tax) pay into her super account, totalling $1,100 of personal non-concessional contributions for the year. She meets all other co-contribution eligibility requiremen... | $550 | $275 | $500 | $1,100 | C | $500 | 500 | AUD | Personal non-concessional contributions for the year = $1,100 → Government matching at 50% = 1,100 x 0.5 = $550 → Capped at the maximum co-contribution of $500 (same cap as the base example), so Rosa receives the maximum $500 | {"$550": "Applied the 50% matching rate without capping at the $500 maximum", "$275": "Halved the matched amount as if the matching rate were 25%", "$500": "Correct answer", "$1,100": "Treated the whole personal contribution as the co-contribution"} | {"formula": "min(personal_contribution * match_rate, max_cc)", "params": {"personal_contribution": 1100, "match_rate": 0.5, "max_cc": 500}, "expected": 500.0} |
Q016 | Division 7A & Company Tax | Division 7A minimum yearly repayment – subsequent year (amortisation formula) | Income tax (Division 7A deemed dividend) | 2015-16 | hard | ["ITAA 1936 s 109E", "ITAA 1936 s 109N"] | https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/private-company-benefits-division-7a-dividends/in-detail/division-7a-loans | Continuing the same amalgamated loan, the amount of the loan remaining at the end of the previous income year (year ended 30 June 2015) is $63,750. The benchmark interest rate for the 2016 income year is 5.45% and the remaining term is 6 years (the 7-year loan term less one elapsed year). The minimum yearly repayment i... | $12,944.01 | $3,474.38 | $11,197.61 | $12,741.19 | D | $12,741.19 | 12,741.19 | AUD | Amount of loan not repaid by end of previous (2015) income year P = 63,750 → 2016 benchmark interest rate I = 5.45% (0.0545); remaining term T = 6 years → Step 1: 63,750 x 0.0545 = 3,474.375 → Step 2: 1 / (1 + 0.0545) = 0.948316738 → Step 3: 0.948316738 ^ 6 = 0.72731157 → Step 4: 1 - 0.72731157 = 0.27268843 → Step 5: 3... | {"$12,944.01": "Used the prior year's 5.95% benchmark rate instead of the current 5.45% rate", "$3,474.38": "Charged only one year's interest instead of amortising over the remaining term", "$11,197.61": "Used the original 7-year term instead of the 6-year remaining term", "$12,741.19": "Correct answer"} | {"formula": "(P * I) / (1 - (1 / (1 + I)) ** T)", "params": {"P": 63750, "I": 0.0545, "T": 6}, "expected": 12741.19} |
Q017 | Superannuation | Super guarantee on back pay – OTE component only | Superannuation (super guarantee) | 2025-26 | medium | ["Superannuation Guarantee (Administration) Act 1992 s 6(1)", "Superannuation Guarantee (Administration) Act 1992 s 19"] | https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay | Priscilla finished employment with Clever Crosswords Pty Ltd on 30 June 2025. In September 2025 the company realises it underpaid her for the period 1 January to 30 June 2025 and works out back pay of $3,150 of ordinary hours and $945 of overtime. Priscilla is paid the back pay on 6 September 2025. Overtime is not OTE,... | $378.00 | $113.40 | $491.40 | $362.25 | A | $378.00 | 378 | AUD | OTE component of the back pay = $3,150 of ordinary hours (the $945 overtime is not OTE) → Super guarantee rate (payment made 6 September 2025) = 12% (rate kept fixed from the base example) → SG = 3,150 x 12% = $378 | {"$378.00": "Correct answer", "$113.40": "Applied SG to the overtime component only", "$491.40": "Included the $945 overtime back pay in OTE", "$362.25": "Used the old 11.5% SG rate instead of 12% applicable to the September 2025 payment"} | {"formula": "ordinary_backpay * sg_rate", "params": {"ordinary_backpay": 3150, "overtime_backpay": 945, "sg_rate": 0.12, "old_rate": 0.115}, "expected": 378.0} |
Q018 | FBT | Meal entertainment fringe benefit – 50:50 split method | Fringe benefits tax | 2025-26 | easy | ["FBTAA 1986 s 37AA", "FBTAA 1986 s 37BA"] | https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2026-instructions/item-23-fringe-benefit-categories-for-fbt-return-2026 | Kestrel Advisory Partners spends $6,800 on meal entertainment (not provided under a salary packaging arrangement) for the FBT year ending 31 March 2026. On 1 April 2026 the employer elects to value the meal entertainment fringe benefits using the 50:50 split method.
What is the taxable value of the meal entertainment ... | $3,400.00 | $6,415.12 | $1,598.00 | $6,800.00 | A | $3,400.00 | 3,400 | AUD | Under the 50:50 split method, the taxable value is 50% of total expenditure on meal entertainment for all people (employees, clients or others) during the FBT year → Total meal entertainment expenditure = 6,800 → Taxable value = 6,800 x 50% = 3,400 | {"$3,400.00": "Correct answer", "$6,415.12": "Grossed up the 50% taxable value by the Type 2 factor before reporting it", "$1,598.00": "Reported the FBT payable (47% of the taxable value) instead of the taxable value", "$6,800.00": "Treated the whole expenditure as the taxable value, ignoring the 50% split"} | {"formula": "total_meal_entertainment * split_rate", "params": {"total_meal_entertainment": 6800, "split_rate": 0.5}, "expected": 3400.0} |
Q019 | FBT | Car fringe benefit – operating cost method with employee contribution | Fringe benefits tax (car fringe benefits) | 2020-21 | medium | ["FBTAA 1986 s 10", "FBTAA 1986 s 10(3)"] | https://www.ato.gov.au/law/view/document?locid=%27SAV/FBTGEMP/7.9%27&PiT=99991231235958 | A car purchased by Summit Architecture Studio in February 2020 is used privately by its employee Priya Venkatesh throughout the FBT year 1 April 2020 to 31 March 2021. The employer and employee kept the right records and determined the business use percentage is 65% (so private use is 35%). The total operating costs fo... | $7,540 | $5,740 | $3,940 | $8,860 | C | $3,940 | 3,940 | AUD | Total operating costs = 16,400 (includes deemed depreciation at 25% and deemed interest) → Private use percentage = 100% - 65% business use = 35% → Operating costs x private use % = 16,400 x 35% = 5,740 → Reduce by the employee (recipient) contribution: 5,740 - 1,800 = 3,940 | {"$7,540": "Added the employee contribution instead of subtracting it", "$5,740": "Forgot to subtract the $1,800 employee fuel contribution", "$3,940": "Correct answer", "$8,860": "Applied the 65% business use percentage instead of the 35% private use percentage"} | {"formula": "operating_costs * private_use_percent - employee_contribution", "params": {"operating_costs": 16400, "business_use_percent": 0.65, "private_use_percent": 0.35, "employee_contribution": 1800}, "expected": 3940.0} |
Q020 | Division 7A & Company Tax | Distributable surplus limit – proportional reduction of a deemed dividend | Income tax (Division 7A deemed dividend) | 2014-15 | medium | ["ITAA 1936 s 109Y"] | https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/private-company-benefits-division-7a-dividends/in-detail/division-7a-distributable-surplus | On 3 March 2015 Brightwater Trading Pty Ltd loaned $800 to its shareholder Marcus, which is treated as a provisional dividend of $800 at 30 June 2015. For the year ended 30 June 2015 Brightwater Trading Pty Ltd has a distributable surplus of $1,500, while the total of all provisional dividends (loans and payments to sh... | $1,500.00 | $600.00 | $1,066.67 | $800.00 | B | $600.00 | 600 | AUD | Provisional dividend to Marcus = 800 → Distributable surplus = 1,500; total of all provisional dividends = 2,000 → Distributable surplus (1,500) < total provisional dividends (2,000), so reduce proportionally → Amount treated as a dividend = 800 x (1,500 / 2,000) = 600 (included as an unfranked dividend) | {"$1,500.00": "Treated the entire distributable surplus as Marcus's dividend instead of apportioning it across all provisional dividends", "$600.00": "Correct answer", "$1,066.67": "Inverted the ratio (multiplied by total/surplus instead of surplus/total)", "$800.00": "Treated the whole $800 loan as a dividend, ignorin... | {"formula": "provisional_dividend * distributable_surplus / total_provisional", "params": {"provisional_dividend": 800, "distributable_surplus": 1500, "total_provisional": 2000}, "expected": 600.0} |
Q021 | Depreciation | Immediate deduction threshold – asset costing exactly $300 (rental, qualifies) | Income tax (capital allowances, Div 40) | 2024-25 | medium | ["ITAA 1997 s 40-80(2)", "ITAA 1997 s 40-25"] | https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/rental-expenses/depreciating-assets-in-rental-properties | Olivia buys a freestanding electric heater for her residential rental property for exactly $300 (GST-inclusive; she is not registered for GST). The property is rented at commercial rates and the heater is used 100% to produce assessable rental income. Assets costing $300 or LESS can be claimed as an immediate deduction... | $150 | $300 | $20 | $40 | B | $300 | 300 | AUD | The heater costs exactly $300, which is '$300 or less', so it qualifies for an immediate deduction → It is used 100% for a taxable (rental) purpose, so no private-use reduction applies → Immediate deduction = full cost = 300 | {"$150": "Wrongly apportioned the cost by 50% as if the asset were used half privately", "$300": "Correct answer", "$20": "Depreciated the asset over 15 years at the prime cost rate instead of an immediate deduction", "$40": "Trap: depreciated the asset at the diminishing value rate instead of claiming the immediate de... | {"formula": "cost", "params": {"cost": 300, "effective_life": 15, "dv_factor": 2.0, "half": 0.5}, "expected": 300.0} |
Q022 | Individual income tax | Net capital gain (prior-year loss then 50% discount) added to salary, then income tax plus Medicare levy | Income tax (individual) | 2023-24 | hard | ["ITAA 1997 s 102-5", "ITAA 1997 s 102-15", "ITAA 1997 s 115-100", "ITAA 1997 s 4-10", "Medicare Levy Act 1986 s 6"] | https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/using-capital-losses-to-reduce-capital-gains | Daniel is an Australian resident for the year ended 30 June 2024. His only salary is $78,000. During 2023-24 he sold parcels of shares he had held for more than 3 years, making a total capital gain (before any discount) of $30,000, all of which qualifies for the 50% CGT discount. He also has a carried-forward net capit... | $20,482 | $22,552 | $21,517 | $19,717 | C | $21,517 | 21,517 | AUD | Apply the carried-forward capital loss BEFORE the discount: 30,000 - 6,000 = 24,000 → Apply the 50% CGT discount: 24,000 x 0.5 = 12,000 (net capital gain) → Taxable income = salary 78,000 + net capital gain 12,000 = 90,000 → Income tax (2023-24 bracket $45,001-$120,000) = 5,092 + (90,000 - 45,000) x 0.325 = 5,092 + 14,... | {"$20,482": "Wrong order: applied the 50% discount to the gain BEFORE deducting the prior-year capital loss (loss applied to the already-halved gain)", "$22,552": "Ignored the carried-forward $6,000 capital loss entirely", "$21,517": "Correct answer", "$19,717": "Forgot to add the 2% Medicare levy on taxable income"} | {"formula": "base + ((salary + (gross_gain - prior_loss) * discount_rate) - threshold) * marginal_rate + (salary + (gross_gain - prior_loss) * discount_rate) * medicare_rate", "params": {"salary": 78000, "gross_gain": 30000, "prior_loss": 6000, "discount_rate": 0.5, "base": 5092, "threshold": 45000, "marginal_rate": 0.... |
Q023 | CGT | Indexation method – investment property acquired before 21 Sep 1999 | Income tax (CGT) | 2024-25 | hard | ["ITAA 1997 s 104-10", "ITAA 1997 s 110-25", "ITAA 1997 s 114-1"] | https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/indexing-the-cost-base | Gordon bought an investment property for $200,000 under a contract dated 18 May 1992 (deposit $20,000, balance $180,000 on settlement), paying $7,000 stamp duty and $3,000 solicitor's fees, all before 21 September 1999. He sold it on 12 November 2024 for $850,000, incurring $2,000 solicitor's fees and $20,000 agent's c... | $309,000 | $286,530 | $573,060 | $618,000 | C | $573,060 | 573,060 | AUD | Indexed acquisition costs = 24,400 + 219,600 + 7,850 + 3,090 = 254,940 → Add non-indexable sale costs: 254,940 + 2,000 + 20,000 = 276,940 (total indexed cost base) → Capital gain (indexation method) = 850,000 - 276,940 = 573,060 → Under the indexation method the CGT discount does not apply | {"$309,000": "Used the discount method on the unindexed cost base ($177,500) instead of indexation", "$286,530": "Wrongly applied the 50% discount on top of the indexation method", "$573,060": "Correct answer", "$618,000": "Subtracted the unindexed cost base, ignoring indexation entirely"} | {"formula": "proceeds - indexed_cost_base", "params": {"proceeds": 850000, "indexed_cost_base": 276940, "plain_cost_base": 232000, "discount_rate": 0.5}, "expected": 573060.0} |
Q024 | Study and training loans | HELP/student loan – 2025-26 marginal repayment on repayment income build-up | Compulsory study and training loan repayment | 2025-26 | hard | ["Higher Education Support Act 2003 s 154-1", "Higher Education Support Act 2003 s 154-20"] | https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds | Mia has a HELP debt. For 2025-26 her repayment income is built up as taxable income $70,000 plus a net investment loss of $5,000 plus reportable super contributions of $3,000, giving repayment income of $78,000. From 2025-26 compulsory repayments are MARGINAL: for repayment income in the $67,001 - $125,000 band the rep... | $900 | $450 | $1,650 | $11,700 | C | $1,650 | 1,650 | AUD | Repayment income = 70,000 + 5,000 (net investment loss added back) + 3,000 (reportable super) = 78,000. → 78,000 is in the 2025-26 $67,001 - $125,000 band: 15c for each $1 over $67,000. → Repayment = (78,000 - 67,000) x 0.15 = 11,000 x 0.15 = 1,650. | {"$900": "Omitted the net investment loss add-back from repayment income", "$450": "Used taxable income only and forgot to add the net investment loss and reportable super to repayment income", "$1,650": "Correct answer", "$11,700": "Applied 15% to the whole repayment income (old flat-rate method) instead of only the a... | {"formula": "((taxable_income + net_investment_loss + reportable_super) - threshold) * marginal_rate", "params": {"taxable_income": 70000, "net_investment_loss": 5000, "reportable_super": 3000, "threshold": 67000, "marginal_rate": 0.15}, "expected": 1650.0} |
Q025 | Depreciation | Prime cost (straight line) method – full year | Income tax (capital allowances, Div 40) | 2024-25 | easy | ["ITAA 1997 s 40-25", "ITAA 1997 s 40-75"] | https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules-capital-allowances/prime-cost-straight-line-and-diminishing-value-methods | A machine costs $60,000 (after excluding GST the business is entitled to claim) and has an effective life of 8 years. It was acquired on the first day of the income year and is used wholly for a taxable purpose, so it is held for all 365 days of the year. Northbridge Joinery uses the prime cost (straight line) method.
... | $3,750 | $15,000 | $60,000 | $7,500 | D | $7,500 | 7,500 | AUD | Prime cost formula: cost x (days held / 365) x (100% / effective life) → Rate = 100% / 8 years = 12.5% → Decline in value = 60,000 x (365 / 365) x 12.5% = 7,500 | {"$3,750": "Wrongly halved the straight-line amount", "$15,000": "Applied the diminishing value 200% rate instead of the prime cost 100% rate", "$60,000": "Forgot to divide by the effective life (omitted the rate entirely)", "$7,500": "Correct answer"} | {"formula": "cost * (days_held / days_year) * (1 / effective_life)", "params": {"cost": 60000, "days_held": 365, "days_year": 365, "effective_life": 8, "dv_factor": 2.0}, "expected": 7500.0} |
Q026 | FBT | Type 1 gross-up of GST-inclusive car fringe benefits (higher gross-up rate 2.0802) | Fringe benefits tax (car fringe benefits) | 2022-23 | medium | ["FBTAA 1986 s 5B", "FBTAA 1986 s 136(1)"] | https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/calculating-your-fbt | Verdant Foods Pty Ltd provides fringe benefits to its two employees, Carlos and Yuki. The GST-inclusive benefits for which Verdant Foods can claim a GST credit (type 1 benefits) are: a car fringe benefit for Carlos with a taxable value of $9,900, a car fringe benefit for Yuki with a taxable value of $8,800, and restaur... | $23,100 | $43,585 | $22,585 | $48,053 | D | $48,053 | 48,053 | AUD | Add the taxable values of all fringe benefits that included GST: 9,900 (car) + 8,800 (car) + 4,400 (meals) = 23,100 → Multiply by the higher (type 1) gross-up rate of 2.0802 because a GST credit is available → 23,100 x 2.0802 = 48,053 (rounded to nearest dollar) | {"$23,100": "Forgot to gross up the taxable value at all", "$43,585": "Used the type 2 (lower) gross-up rate 1.8868 instead of the type 1 rate 2.0802", "$22,585": "Applied the 47% FBT rate at the gross-up step instead of producing the grossed-up amount", "$48,053": "Correct answer"} | {"formula": "round(gst_inclusive_value * type1_rate)", "params": {"gst_inclusive_value": 23100, "type1_rate": 2.0802, "type2_rate": 1.8868}, "expected": 48053.0} |
Q027 | Rental property | Net rental income or loss – summing income and expense lines including capital works | Income tax (rental) | 2024-25 | hard | ["ITAA 1997 s 8-1", "ITAA 1997 s 6-5", "ITAA 1997 Div 43", "ITAA 1997 s 43-25"] | https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/worksheet-work-out-your-net-rental-income-or-loss | Priya owns a rental property for the whole of 2024-25. She receives $28,600 in rent plus $400 of other rental-related income. Her deductible rental expenses are: loan interest $19,200, council rates $2,100, insurance $1,300, property agent fees $2,288 and deductible repairs $900. A quantity surveyor's report shows the ... | -$288 | -$4,788 | -$688 | $3,212 | A | -$288 | -288 | AUD | Gross rent = rent 28,600 + other rental income 400 = 29,000 → Deductible expenses = interest 19,200 + council rates 2,100 + insurance 1,300 + agent fees 2,288 + repairs 900 + capital works 3,500 = 29,288 → The $4,500 new pergola is a capital improvement, not an immediate repair, so it is NOT included in current-year ex... | {"-$288": "Correct answer", "-$4,788": "Wrongly deducted the $4,500 new pergola (a capital improvement) as an immediate expense", "-$688": "Forgot the $400 of other rental-related income in gross rent", "$3,212": "Omitted the $3,500 capital works (Division 43) deduction"} | {"formula": "(rent + other_income) - (interest + council_rates + insurance + agent_fees + repairs + capital_works)", "params": {"rent": 28600, "other_income": 400, "interest": 19200, "council_rates": 2100, "insurance": 1300, "agent_fees": 2288, "repairs": 900, "capital_works": 3500, "pergola": 4500}, "expected": -288.0... |
Q028 | Superannuation | Super guarantee – OTE excludes overtime | Superannuation (super guarantee) | 2025-26 | medium | ["Superannuation Guarantee (Administration) Act 1992 s 6(1)", "Superannuation Guarantee (Administration) Act 1992 s 19"] | https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay | For the fortnightly pay period ending 30 June 2025, Marco's pay (paid by Olivia on 3 July 2025) includes salary of $3,200, a higher duties allowance of $600, overtime of $142.55 and an overtime meal allowance of $30. Overtime and overtime meal allowances are not in respect of ordinary hours, so they are excluded from O... | $476.71 | $473.11 | $456.00 | $384.00 | C | $456.00 | 456 | AUD | Ordinary time earnings = salary $3,200 + higher duties allowance $600 = $3,800 (overtime and overtime meal allowance are excluded) → Super guarantee rate (payment made 3 July 2025) = 12% (rate kept fixed from the base example) → SG = 3,800 x 12% = $456 | {"$476.71": "Included overtime and the overtime meal allowance in OTE", "$473.11": "Included overtime in OTE", "$456.00": "Correct answer", "$384.00": "Left out the higher duties allowance, which is part of OTE"} | {"formula": "(salary + higher_duties) * sg_rate", "params": {"salary": 3200, "higher_duties": 600, "overtime": 142.55, "overtime_meal": 30, "sg_rate": 0.12}, "expected": 456.0} |
Q029 | FBT | FBT payable – fringe benefits taxable amount multiplied by FBT rate 47% | Fringe benefits tax (car fringe benefits) | 2022-23 | easy | ["FBTAA 1986 s 66", "FBTAA 1986 s 5B"] | https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/calculating-your-fbt | After grossing up its benefits, Verdant Foods Pty Ltd (which provided car fringe benefits to Carlos and Yuki plus meals and gym memberships) has a total fringe benefits taxable amount of $61,800 (the type 1 grossed-up amount of $48,053 plus the type 2 grossed-up amount of $13,747). The FBT rate for the year is 47%.
Ho... | $29,046.00 | $61,800.00 | $27,810.00 | $60,421.49 | A | $29,046.00 | 29,046 | AUD | Total fringe benefits taxable amount = type 1 grossed-up (48,053) + type 2 grossed-up (13,747) = 61,800 → Multiply by the FBT rate of 47% → 61,800 x 0.47 = 29,046 | {"$29,046.00": "Correct answer", "$61,800.00": "Reported the fringe benefits taxable amount without applying the FBT rate", "$27,810.00": "Used a 45% rate instead of the 47% FBT rate", "$60,421.49": "Grossed up a second time by 2.0802 before applying the FBT rate"} | {"formula": "fringe_benefits_taxable_amount * fbt_rate", "params": {"fringe_benefits_taxable_amount": 61800, "fbt_rate": 0.47, "type1_rate": 2.0802}, "expected": 29046.0} |
Q030 | GST | Sale of existing residential premises – input-taxed, no GST | GST | 2024-25 | medium | ["GST Act 1999 s 40-65", "GST Act 1999 s 9-30(2)"] | https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/when-to-charge-gst-and-when-not-to/input-taxed-sales/residential-premises | Rivermont Pty Ltd, registered for GST, sells an existing residential house (not new residential premises and not commercial residential premises) for $660,000. The premises have only ever been used as a residence.
How much GST is payable on the sale of the residential premises?
A. $66,000
B. $60,000
C. $0
D. $600,000 | $66,000 | $60,000 | $0 | $600,000 | C | $0 | 0 | AUD | The sale of existing residential premises is an input-taxed sale → On an input-taxed sale the seller is not liable for GST and does not charge GST → The 1/11 GST calculation does NOT apply, so GST payable = $0 | {"$66,000": "Applied 10% GST to the sale price, ignoring that residential premises are input-taxed", "$60,000": "Wrongly applied the 1/11 GST fraction to the GST-inclusive price as if it were a taxable sale", "$0": "Correct answer", "$600,000": "Reported the GST-exclusive price instead of recognising there is no GST at... | {"formula": "0 * sale_price", "params": {"sale_price": 660000, "gst_fraction": 0.09090909090909091, "gst_rate": 0.1}, "expected": 0.0} |
Q031 | Superannuation | Unused concessional cap accumulated in a single year | Superannuation (concessional contributions cap) | 2018-19 | easy | ["ITAA 1997 s 291-20"] | https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap | In 2018-19 Diego and his employer made only $7,500 of super guarantee concessional contributions. The concessional contributions cap for 2018-19 was $25,000. Carry-forward of unused concessional cap amounts can be accumulated starting from 2018-19.
What unused concessional contributions cap did Diego accumulate in 201... | $32,500 | $25,000 | $20,000 | $17,500 | D | $17,500 | 17,500 | AUD | 2018-19 concessional contributions cap = $25,000 (cap kept fixed from the base example) → Concessional contributions made = $7,500 super guarantee → Unused cap accumulated = 25,000 - 7,500 = $17,500 | {"$32,500": "Added the contributions to the cap instead of subtracting them", "$25,000": "Forgot to subtract the $7,500 already contributed", "$20,000": "Used a later year's $27,500 cap instead of the 2018-19 cap of $25,000", "$17,500": "Correct answer"} | {"formula": "annual_cap_1819 - contributions_1819", "params": {"annual_cap_1819": 25000, "contributions_1819": 7500, "annual_cap_2122": 27500}, "expected": 17500.0} |
Q032 | FBT | Expense payment fringe benefit – otherwise deductible rule (home phone) | Fringe benefits tax | 2025-26 | easy | ["FBTAA 1986 s 23", "FBTAA 1986 s 24"] | https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2026-instructions/item-23-fringe-benefit-categories-for-fbt-return-2026 | Meridian Property Group pays its employee Lachlan Frost's home telephone bill of $1,800 for the FBT year ending 31 March 2026. On 31 March 2026 Lachlan provides a declaration stating that 45% of the calls are for business purposes (and are therefore otherwise deductible) and the other 55% are private calls. This reimbu... | $271.69 | $990.00 | $1,800.00 | $810.00 | B | $990.00 | 990 | AUD | Gross taxable value of the expense payment fringe benefit = amount paid = 1,800 → Otherwise deductible amount = 1,800 x 45% = 810 → Taxable value = 1,800 - 810 = 990 → FBT rate for the year is 47% and loan/expense benefits with no GST credit gross up at the Type 2 rate of 1.8868, but the taxable value itself is 990 bef... | {"$271.69": "Grossed up the deductible reduction by the Type 2 factor before subtracting", "$990.00": "Correct answer", "$1,800.00": "Used the full bill as the taxable value, ignoring the otherwise deductible rule", "$810.00": "Reported the deductible (otherwise deductible) portion as the taxable value instead of the p... | {"formula": "bill - bill * deductible_pct", "params": {"bill": 1800, "deductible_pct": 0.45}, "expected": 990.0} |
Q033 | CGT | CGT discount method – investment property (single asset) | Income tax (CGT) | 2024-25 | easy | ["ITAA 1997 s 104-10", "ITAA 1997 s 110-25", "ITAA 1997 s 115-100"] | https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/how-to-calculate-your-cgt | Daniel buys an investment property for $560,000 and sells it 6 years later for $880,000. His cost base is $615,000, made up of the $560,000 purchase price plus $22,000 stamp duty and $1,800 conveyancing fees on purchase, and $1,400 conveyancing fees and $29,800 agent's commission on sale. He has no other capital gains ... | $66,250 | $440,000 | $132,500 | $265,000 | C | $132,500 | 132,500 | AUD | Capital proceeds = 880,000 → Cost base = 615,000 (purchase price + acquisition costs + disposal costs) → Capital gain = 880,000 - 615,000 = 265,000 → Apply 50% CGT discount (held more than 12 months, Australian resident): 265,000 x 0.5 = 132,500 | {"$66,250": "Applied the 50% discount twice", "$440,000": "Applied the discount to the sale proceeds instead of the gain", "$132,500": "Correct answer", "$265,000": "Reported the gross capital gain without applying the 50% CGT discount"} | {"formula": "(proceeds - cost_base) * discount_rate", "params": {"proceeds": 880000, "cost_base": 615000, "discount_rate": 0.5}, "expected": 132500.0} |
Q034 | FBT | Car fringe benefit – statutory formula method (days apportioned, no employee contribution) | Fringe benefits tax (car fringe benefits) | 2016-17 | easy | ["FBTAA 1986 s 9", "FBTAA 1986 s 162C"] | https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2017-completing-your-return/fringe-benefit-categories/a-cars-using-the-statutory-formula | On 20 August 2016 Brightwater Logistics Pty Ltd agreed to provide its employee Dilan Reddy with a car fringe benefit. The car was delivered on 25 August 2016 and was available to Dilan for private use from that date until the end of the FBT year (31 March 2017), a total of 219 days. Over that period the car travelled 2... | $9,000 | $15,000 | $7,020 | $5,400 | D | $5,400 | 5,400 | AUD | Statutory formula method: taxable value = (A x B x C / D) - E → A = base value = 45,000; B = statutory rate = 20% (flat 20% applies from 1 April 2014 where there is no pre-existing commitment); C = days available for private use = 219; D = days in FBT year = 365; E = employee contribution = 0 → (45,000 x 0.20 x 219) / ... | {"$9,000": "Forgot to apportion by the days the car was available (used the full-year value)", "$15,000": "Inverted the days fraction (multiplied by 365/219 instead of 219/365)", "$7,020": "Used the 26% pre-existing-commitment rate (under 15,000 km) instead of the flat 20% statutory rate", "$5,400": "Correct answer"} | {"formula": "base_value * statutory_rate * days_available / days_in_year", "params": {"base_value": 45000, "statutory_rate": 0.2, "days_available": 219, "days_in_year": 365, "employee_contribution": 0}, "expected": 5400.0} |
Q035 | CGT | Inherited property partial exemption – previously inherited, days-based | Income tax (CGT) | 2024-25 | hard | ["ITAA 1997 s 118-195", "ITAA 1997 s 118-185", "ITAA 1997 s 128-15"] | https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/inherited-assets-and-capital-gains-tax/calculating-a-partial-exemption-for-inherited-property | Idris acquired a property after 20 September 1985 and owned it for 4,500 days, during which it was his main residence throughout. He left it to his daughter Noor, who owned it for 3,000 days and never used it as her main residence. When Noor died she left it to Lakshmi, who owned it for 900 days and never used it as he... | $468,000.00 | $250,714.29 | $289,285.71 | $125,357.14 | B | $250,714.29 | 250,714.29 | AUD | Non-main-residence days = 3,000 (Noor) + 900 (Lakshmi) = 3,900 → Total days = 3,900 + 4,500 (Idris, main residence) = 8,400 → Taxable proportion = 540,000 x (3,900 / 8,400) = 250,714 (rounded to nearest dollar) → The 50% discount may then be applied separately as the combined ownership exceeded 12 months | {"$468,000.00": "Divided by main-residence days only instead of total ownership days", "$250,714.29": "Correct answer", "$289,285.71": "Used main-residence days in the numerator instead of non-main-residence days", "$125,357.14": "Applied the 50% discount, but the question asks for the taxable proportion before the dis... | {"formula": "total_gain * non_main_days / total_days", "params": {"total_gain": 540000, "non_main_days": 3900, "total_days": 8400, "discount_rate": 0.5}, "expected": 250714.29} |
Q036 | Individual income tax | Income tax plus Medicare levy with an exempt receipt as a red herring | Income tax (individual) | 2023-24 | medium | ["ITAA 1997 s 4-10", "Income Tax Rates Act 1986 Sch 7", "Medicare Levy Act 1986 s 6", "ITAA 1997 s 6-20"] | https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents | Priya is an Australian resident for the year ended 30 June 2024 with a taxable income of $60,000. During the year she also received a $1,500 government disaster relief payment that is exempt income (not assessable and not included in taxable income). Priya is 67 years old. For 2023-24 the resident rates are: nil up to ... | $20,700.00 | $11,684.50 | $9,967.00 | $11,167.00 | D | $11,167.00 | 11,167 | AUD | The $1,500 disaster relief payment is exempt income and Priya's age (67) does not change these rates, so both are ignored → Income tax (2023-24 bracket $45,001-$120,000) = 5,092 + (60,000 − 45,000) × 0.325 = 5,092 + 4,875 = 9,967 → Medicare levy = 60,000 × 0.02 = 1,200 → Income tax payable incl Medicare levy = 9,967 + ... | {"$20,700.00": "Applied 32.5% to the whole income instead of only the amount over $45,000 (and dropped the base amount)", "$11,684.50": "Wrongly added the $1,500 exempt disaster relief payment to taxable income", "$9,967.00": "Forgot to add the 2% Medicare levy", "$11,167.00": "Correct answer"} | {"formula": "base + (taxable_income - threshold) * marginal_rate + taxable_income * medicare_rate", "params": {"taxable_income": 60000, "base": 5092, "threshold": 45000, "marginal_rate": 0.325, "medicare_rate": 0.02, "disaster_relief": 1500, "age": 67}, "expected": 11167.0} |
Q037 | GST | Margin scheme on subdivided land – GST = (sale price − apportioned cost) / 11 | GST | 2018-19 | medium | ["GST Act s 75-10", "GST Act s 75-15"] | https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/property/gst-and-the-margin-scheme/calculating-the-gst-payable | Riverstone Developments is a GST-registered property developer. It bought a 2,500 square metre block of land for $275,000 from a private individual who wasn't required to be registered for GST. The block is of equal value per square metre. Riverstone subdivided it into a 1,000 sqm lot and a 1,500 sqm lot, using an area... | $17,000 | $7,000 | -$8,000 | $7,700 | B | $7,000 | 7,000 | AUD | Apportioned purchase price of the 1,000 sqm lot = 1,000 / 2,500 x 275,000 = 110,000 → Margin = sale price - apportioned purchase price = 187,000 - 110,000 = 77,000 → GST = one eleventh of the margin = 77,000 / 11 = 7,000 | {"$17,000": "Applied 1/11 to the full sale price instead of the margin", "$7,000": "Correct answer", "-$8,000": "Subtracted the whole block's $275,000 cost instead of the apportioned $110,000 for the lot sold", "$7,700": "Took 10% of the GST-inclusive margin instead of 1/11"} | {"formula": "(sale_price - apportioned_cost) / 11", "params": {"sale_price": 187000, "apportioned_cost": 110000, "total_block_cost": 275000}, "expected": 7000.0} |
Q038 | GST | Margin scheme – GST = margin / 11 (vacant land improved and resold) | GST | 2018-19 | easy | ["A New Tax System (Goods and Services Tax) Act 1999 s 75-5", "GST Act s 75-10"] | https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/property/gst-and-the-margin-scheme/calculating-the-gst-payable | Marco is registered for GST. On 25 September 2017 he buys vacant land for $660,000 from Lena, who isn't registered for GST. Marco improves the property with roads and other services and sells it to a developer for $935,000 on 2 October 2018. He chooses to use the margin scheme to work out the GST on the sale.
How much... | $27,500 | $85,000 | $12,500 | $25,000 | D | $25,000 | 25,000 | AUD | Margin = sale price - purchase price = 935,000 - 660,000 = 275,000 → Under the margin scheme, GST = one eleventh of the margin → GST = 275,000 / 11 = 25,000 | {"$27,500": "Took 10% of the GST-inclusive margin instead of 1/11", "$85,000": "Applied 1/11 to the full sale price instead of the margin (ignored the margin scheme)", "$12,500": "Halved the GST as if a CGT-style 50% discount applied", "$25,000": "Correct answer"} | {"formula": "(sale_price - purchase_price) / 11", "params": {"sale_price": 935000, "purchase_price": 660000}, "expected": 25000.0} |
Q039 | Rental property | Holiday home with owner private use (net rental loss after apportionment) | Income tax (rental) | 2024-25 | medium | ["ITAA 1997 s 8-1", "IT 2167"] | https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses | Rosalind and Quentin jointly own a property they rent out at market rates and also use as a holiday home for 7 weeks during the year. Their total expenses for the property are $45,175, of which $2,275 is the agent's commission and advertising (fully deductible). The remaining $42,900 of expenses must be apportioned to ... | -$7,893.75 | $23,150.00 | -$13,975.00 | -$8,200.00 | D | -$8,200.00 | -8,200 | AUD | Apportion general expenses to the 45 weeks available for rent: (45 / 52) x 42,900 = 37,125 → Add the fully deductible agent commission and advertising: 37,125 + 2,275 = 39,400 total deductions → Rental loss = rent 31,200 - deductions 39,400 = -8,200 | {"-$7,893.75": "Apportioned the agent commission/advertising too, instead of claiming it in full", "$23,150.00": "Apportioned using the 4 private-use weeks instead of the 48 weeks available for rent", "-$13,975.00": "Deducted the full year of expenses without apportioning for the 4 weeks of private use", "-$8,200.00": ... | {"formula": "rent_received - ((weeks_available / weeks_in_year) * apportionable_expenses + agent_costs)", "params": {"rent_received": 31200, "apportionable_expenses": 42900, "weeks_available": 45, "weeks_in_year": 52, "agent_costs": 2275}, "expected": -8200.0} |
Q040 | CGT | Multi-step: prior-year loss, then current-year loss, then discount (order matters) | Income tax (CGT) | 2024-25 | hard | ["ITAA 1997 s 102-5", "ITAA 1997 s 102-15", "ITAA 1997 s 115-100"] | https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/how-to-calculate-your-cgt | In 2024-25 Wei makes a discount-eligible capital gain of $80,000 on an investment property held for 7 years. In the same year he makes a $6,000 capital loss on shares. He also has a net capital loss of $14,000 carried forward from an earlier income year. Per the ATO steps, all capital losses (prior-year first, then cur... | $30,000 | $37,000 | $20,000 | $60,000 | A | $30,000 | 30,000 | AUD | Subtract the prior-year net capital loss first: 80,000 - 14,000 = 66,000 → Subtract the current-year capital loss: 66,000 - 6,000 = 60,000 → Apply the 50% CGT discount to the remaining gain: 60,000 x 0.5 = 30,000 | {"$30,000": "Correct answer", "$37,000": "Subtracted only the current-year loss and ignored the carried-forward prior-year loss", "$20,000": "Trap: applied the 50% discount before subtracting the losses (wrong order)", "$60,000": "Subtracted both losses but forgot to apply the 50% discount"} | {"formula": "(property_gain - prior_loss - current_loss) * discount_rate", "params": {"property_gain": 80000, "current_loss": 6000, "prior_loss": 14000, "discount_rate": 0.5}, "expected": 30000.0} |
Q041 | Superannuation | Concessional cap headroom after employer SG (OTE × rate) plus salary sacrifice | Superannuation (concessional contributions cap) | 2025-26 | medium | ["ITAA 1997 s 291-20", "Superannuation Guarantee (Administration) Act 1992 s 19"] | https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/salary-sacrificing-super | In 2025-26 Leah's ordinary time earnings (OTE) are $90,000, on which her employer must pay super guarantee (SG) at the 2025-26 rate of 12%. She also enters a salary-sacrifice arrangement to put an extra $12,000 into super; salary-sacrificed amounts are concessional contributions and count towards the concessional contr... | $7,650 | $7,200 | $18,000 | $19,200 | B | $7,200 | 7,200 | AUD | Employer SG = OTE × 12% = 90,000 × 0.12 = 10,800 → Salary-sacrifice contributions = 12,000 (these are concessional and count towards the cap) → Total concessional contributions used = 10,800 + 12,000 = 22,800 → Headroom = concessional cap − contributions used = 30,000 − 22,800 = 7,200 | {"$7,650": "Used the 2024-25 SG rate of 11.5% instead of the 2025-26 rate of 12%", "$7,200": "Correct answer", "$18,000": "Counted only the salary sacrifice against the cap and ignored the employer SG (which is also concessional)", "$19,200": "Counted only the employer SG and ignored the $12,000 salary-sacrifice amount... | {"formula": "cc_cap - (ote*sg_rate + salary_sacrifice)", "params": {"ote": 90000, "sg_rate": 0.12, "salary_sacrifice": 12000, "cc_cap": 30000, "old_sg_rate": 0.115}, "expected": 7200.0} |
Q042 | Depreciation | Immediate deduction threshold – asset costing $301 (just over, must depreciate) | Income tax (capital allowances, Div 40) | 2024-25 | medium | ["ITAA 1997 s 40-80(2)", "ITAA 1997 s 40-25", "ITAA 1997 s 40-70"] | https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/rental-expenses/depreciating-assets-in-rental-properties | Sanjay buys a depreciating asset (a freestanding microwave) for his residential rental property for $301 (he is not registered for GST). The asset is held for the full 365 days of the year and used 100% to produce assessable rental income. Because the cost is MORE than $300, he cannot claim an immediate deduction; he m... | $30.10 | $45.15 | $60.20 | $301.00 | C | $60.20 | 60.2 | AUD | Cost is $301, which is MORE than $300, so no immediate deduction is available → Diminishing value rate = 200% / 10 years = 20% → Decline in value = 301 x (365/365) x (2.0/10) = 60.20 | {"$30.10": "Used the prime cost 100% rate instead of the diminishing value 200% rate", "$45.15": "Used the old 150% diminishing value rate (for assets first held before 10 May 2006) instead of the 200% rate", "$60.20": "Correct answer", "$301.00": "Trap: claimed the full $301 as an immediate deduction, but at $301 the ... | {"formula": "cost * (days_held / days_year) * (dv_factor / effective_life)", "params": {"cost": 301, "days_held": 365, "days_year": 365, "effective_life": 10, "dv_factor": 2.0}, "expected": 60.2} |
Q043 | Individual income tax | Medicare levy reduction for low-income earners (shade-in) | Medicare levy | 2024-25 | medium | ["Medicare Levy Act 1986 s 7", "Medicare Levy Act 1986 s 8"] | https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-reduction/medicare-levy-reduction-for-low-income-earners | Bianca's taxable income is $31,500. She is single with no dependants and isn't entitled to SAPTO. For 2024-25 a single taxpayer's Medicare levy is reduced (shaded in) where taxable income is between the lower threshold of $27,222 and the upper threshold of $34,027: in the shade-in range the levy is 10c for each $1 of t... | $427.80 | $85.56 | $630.00 | $3,150.00 | A | $427.80 | 427.8 | AUD | Kept taxable income within the 2024-25 single shade-in band ($27,222 lower to $34,027 upper threshold) → In the shade-in range the levy = 10c for each $1 of taxable income over the lower threshold → Reduced Medicare levy = (31,500 - 27,222) x 0.10 = 4,278 x 0.10 = 427.80 | {"$427.80": "Correct answer", "$85.56": "Applied the 2% rate to the excess over the threshold instead of the 10% shade-in rate", "$630.00": "Charged the full 2% Medicare levy and ignored the low-income reduction", "$3,150.00": "Applied the 10% shade-in rate to the whole taxable income instead of only the amount over th... | {"formula": "(taxable_income - lower_threshold) * shade_in_rate", "params": {"taxable_income": 31500, "lower_threshold": 27222, "shade_in_rate": 0.1, "full_rate": 0.02}, "expected": 427.8} |
Q044 | Superannuation | Super guarantee – maximum contribution base cap | Superannuation (super guarantee) | 2025-26 | medium | ["Superannuation Guarantee (Administration) Act 1992 s 15", "Superannuation Guarantee (Administration) Act 1992 s 19"] | https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay | Felix is the Operations Manager of Diana's Stationery Pty Ltd. During the July to September quarter of 2025-26, Felix's earnings are $78,000. The quarterly maximum contribution base (MCB) for 2025-26 is $62,500, and the super guarantee rate is 12%. SG is only payable up to the MCB.
What super guarantee must Diana's St... | $9,360 | $62,500 | $1,860 | $7,500 | D | $7,500 | 7,500 | AUD | Quarterly earnings = $78,000, which (like the base example) exceeds the maximum contribution base, so SG is capped at the MCB of $62,500 → Use the lesser of earnings and the MCB = $62,500 (MCB kept fixed from the base example) → SG = 62,500 x 12% = $7,500 (no SG is payable on OTE above $62,500) | {"$9,360": "Applied SG to the full $78,000, ignoring the maximum contribution base cap", "$62,500": "Reported the MCB amount itself instead of 12% SG on it", "$1,860": "Applied SG only to the earnings above the MCB", "$7,500": "Correct answer"} | {"formula": "min(earnings, mcb) * sg_rate", "params": {"earnings": 78000, "mcb": 62500, "sg_rate": 0.12}, "expected": 7500.0} |
Q045 | Rental property | Initial repairs are capital, not a deductible repair (existing defects at purchase) | Income tax (rental) | 2024-25 | medium | ["ITAA 1997 s 25-10", "ITAA 1997 s 25-10(3)", "ITAA 1997 Div 43"] | https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/rental-expenses/repair-and-maintenance-expenses | Liam buys a rental property and, immediately after settlement and before the first tenant moves in, pays $8,000 to fix a damaged ceiling and a rotted fence that were already defective at the date of purchase. In the same year he also pays $1,200 to fix a hot-water system that broke down due to normal wear AFTER the pro... | $1,400 | $1,200 | $8,000 | $9,200 | B | $1,200 | 1,200 | AUD | The $8,000 to rectify defects existing at purchase are INITIAL repairs – capital in nature, not an immediate repair deduction → The $1,200 to fix the hot-water system after wear and tear during the rental period IS an immediately deductible repair → Immediate repairs deduction = 1,200 (the $8,000 is claimed as capital ... | {"$1,400": "Added the first-year 2.5% capital works deduction on the initial repairs to the genuine repair instead of treating them separately", "$1,200": "Correct answer", "$8,000": "Claimed only the capital initial repairs as an immediate deduction and missed the genuine $1,200 repair", "$9,200": "Trap: claimed both ... | {"formula": "ordinary_repair", "params": {"initial_repairs": 8000, "ordinary_repair": 1200, "capital_works_rate": 0.025}, "expected": 1200.0} |
Q046 | Individual income tax | Foreign income tax offset (FITO) limit | Income tax offset | 2023-24 | hard | ["ITAA 1997 s 770-10", "ITAA 1997 s 770-75"] | https://www.ato.gov.au/forms-and-instructions/foreign-income-tax-offset-rules-guide-2024/calculate-your-fito-or-offset-limit | Yuki is an Australian resident for the year ended 30 June 2024. She paid $3,200 of foreign income tax. Because she is claiming more than $1,000, she must work out her foreign income tax offset limit. Step 1 is the tax payable on her actual taxable income of $29,000 (including Medicare levy), which the ATO gives as $2,6... | $2,195 | $3,200 | $3,069 | $2,632 | A | $2,195 | 2,195 | AUD | Step 1: tax payable on actual taxable income $29,000 (incl Medicare levy) = 2,632.00 → Step 2: tax payable disregarding foreign income, on taxable income $20,500 (no Medicare levy) = 437.00 → Step 3: offset limit = Step 1 - Step 2 = 2,632.00 - 437.00 = 2,195.00 → Although Yuki paid $3,200 foreign tax, her offset is lim... | {"$2,195": "Correct answer", "$3,200": "Claimed the full $3,200 foreign tax paid without applying the offset limit", "$3,069": "Added Step 1 and Step 2 instead of subtracting, then capped at foreign tax paid", "$2,632": "Used only the Step 1 tax figure as the limit, forgetting to subtract Step 2"} | {"formula": "step1_tax - step2_tax", "params": {"step1_tax": 2632.0, "step2_tax": 437.0, "foreign_tax_paid": 3200}, "expected": 2195.0} |
Q047 | Employment | Work-related car – logbook method (total car expenses × business-use %) | Income tax (work-related deduction) | 2024-25 | easy | ["ITAA 1997 s 28-90", "ITAA 1997 s 28-100", "ITAA 1997 s 8-1"] | https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions/deductions-for-motor-vehicle-expenses/logbook-method | At the end of the income year Owen's logbook shows he travelled a total of 13,000 kilometres, of which 9,750 were for business-related purposes, giving a business-use percentage of 9,750 ÷ 13,000 × 100 = 75%. Owen's total car expenses, including depreciation, are $12,500 for the income year.
Using the logbook method, ... | $9,375.00 | $16,666.67 | $12,500.00 | $12,499.25 | A | $9,375.00 | 9,375 | AUD | Business-use percentage = 9,750 ÷ 13,000 × 100 = 75% → Deduction = total car expenses × business-use percentage → = 12,500 × 75% = 9,375 | {"$9,375.00": "Correct answer", "$16,666.67": "Inverted the ratio (total ÷ business instead of business ÷ total)", "$12,500.00": "Claimed all car expenses without apportioning by the business-use percentage", "$12,499.25": "Subtracted the business-use fraction from the expenses instead of multiplying"} | {"formula": "total_expenses * (business_km/total_km)", "params": {"total_expenses": 12500, "business_km": 9750, "total_km": 13000}, "expected": 9375.0} |
Q048 | FBT | Aggregate non-exempt amount – car fringe benefit grossed up less capping threshold (PBI) | Fringe benefits tax (car fringe benefits) | 2023-24 | hard | ["FBTAA 1986 s 5B(1E)", "FBTAA 1986 s 57A", "FBTAA 1986 s 65J"] | https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2024-instructions/worked-examples-not-for-profit-employers-completing-your-fbt-return | Riverbend Benevolent Society, a public benevolent institution registered for GST, provides Fatima with a car fringe benefit valued at $28,000 using the statutory formula method (a type 1 benefit, as the institution is entitled to GST credits). Fatima's only other benefit is a reimbursement of holiday cottage rent that ... | $58,245.60 | $22,830.40 | $28,245.60 | -$2,000.00 | C | $28,245.60 | 28,245.6 | AUD | Gross up the car fringe benefit using the type 1 rate: 28,000 x 2.0802 = 58,245.60 → The grossed-up amount exceeds the public benevolent institution capping threshold of 30,000 → Aggregate non-exempt amount = grossed-up amount - cap = 58,245.60 - 30,000 = 28,245.60 | {"$58,245.60": "Forgot to subtract the $30,000 capping threshold", "$22,830.40": "Used the type 2 gross-up rate 1.8868 instead of the type 1 rate 2.0802", "$28,245.60": "Correct answer", "-$2,000.00": "Subtracted the cap from the ungrossed-up taxable value instead of grossing up first"} | {"formula": "car_value * type1_rate - exemption_cap", "params": {"car_value": 28000, "type1_rate": 2.0802, "exemption_cap": 30000}, "expected": 28245.6} |
Q049 | Employment | Working from home – fixed rate, only hours with contemporaneous records | Income tax (work-related deduction) | 2024-25 | medium | ["ITAA 1997 s 8-1", "PCG 2023/1"] | https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/working-from-home-expenses/fixed-rate-method | Glenn works from home two days a week (16 hours). From 1 July 2024 to 28 February 2025 he did not keep a record of his work-from-home hours, so he estimated 315 hours, but estimates are not accepted under the fixed rate method. From 1 March 2025 to 30 June 2025 he kept a record in his calendar of his actual start and f... | $220 | $363 | $137 | $143 | D | $143 | 143 | AUD | Only the 204 hours from 1 March to 30 June 2025 have a contemporaneous record and are claimable; the 315 estimated hours are not accepted → Deduction = 204 × $0.70 = $142.80 → Cents are disregarded: deduction = $143 | {"$220": "Used only the estimated-hours period instead of the recorded hours", "$363": "Included the 315 estimated hours that have no contemporaneous record", "$137": "Used the prior-year 67 cents rate instead of the 2024-25 rate of 70 cents", "$143": "Correct answer"} | {"formula": "round(eligible_hours * rate)", "params": {"eligible_hours": 204, "estimated_hours": 315, "rate": 0.7}, "expected": 143.0} |
Q050 | GST | Margin scheme – GST = margin / 11 using an approved valuation (going concern) | GST | 2020-21 | medium | ["GST Act s 75-10", "GST Act s 75-11"] | https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/property/gst-and-the-margin-scheme/calculating-the-gst-payable | In September 2018 Bruno sold his going concern, which included property, to Sofia. Bruno had originally bought the property using the margin scheme in August 2014 for $360,000, and a 2014 state government rates valuation stated its value was $385,000 (given to Sofia). Bruno was registered for GST when Sofia bought it. ... | $60,000.00 | $62,272.73 | $95,000.00 | $66,000.00 | A | $60,000.00 | 60,000 | AUD | Margin = sale price - approved valuation on the date Bruno purchased = 1,045,000 - 385,000 = 660,000 → Under the margin scheme, GST = one eleventh of the margin → GST = 660,000 / 11 = 60,000 | {"$60,000.00": "Correct answer", "$62,272.73": "Used the $360,000 actual purchase price instead of the $385,000 approved valuation for the margin", "$95,000.00": "Applied 1/11 to the full sale price instead of the margin", "$66,000.00": "Took 10% of the GST-inclusive margin instead of 1/11"} | {"formula": "(sale_price - approved_valuation) / 11", "params": {"sale_price": 1045000, "approved_valuation": 385000, "actual_purchase_price": 360000}, "expected": 60000.0} |
Q051 | FBT | Reportable fringe benefits amount – Type 2 gross-up (1.8868) | Fringe benefits tax | 2024-25 | medium | ["FBTAA 1986 s 135P", "ITAA 1997 s 6-1"] | https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/reportable-fringe-benefits-for-employees/consequences-of-having-a-reportable-fringe-benefits-amount | Soren Whitlock's employer provides him with a car fringe benefit with a taxable value of $4,200 and a housing fringe benefit with a taxable value of $1,300 for the 2024-25 income year. Both fringe benefits are reportable, and the total taxable value exceeds the $2,000 reporting threshold. Reportable fringe benefits are... | $5,500.00 | $10,377.40 | $4,877.38 | $11,441.10 | B | $10,377.40 | 10,377.4 | AUD | Total taxable value of the reportable fringe benefits = 4,200 + 1,300 = 5,500 → Reportable fringe benefits are always grossed up at the Type 2 (lower) gross-up rate of 1.8868, regardless of whether the benefits are Type 1 or Type 2 → RFBA = 5,500 x 1.8868 = 10,377.40, reported as 10,377 | {"$5,500.00": "Reported the total taxable value without grossing it up", "$10,377.40": "Correct answer", "$4,877.38": "Applied the 47% FBT rate to the grossed-up amount instead of reporting the RFBA", "$11,441.10": "Used the Type 1 (higher) gross-up rate of 2.0802 instead of the Type 2 rate"} | {"formula": "(car_tv + housing_tv) * type2_gross_up", "params": {"car_tv": 4200, "housing_tv": 1300, "type2_gross_up": 1.8868}, "expected": 10377.4} |
Q052 | Individual income tax | Income tax payable for a resident from the marginal rates (incl. Medicare levy) | Income tax (individual) | 2023-24 | easy | ["ITAA 1997 s 4-10", "Income Tax Rates Act 1986 Sch 7", "Medicare Levy Act 1986 s 6"] | https://www.ato.gov.au/forms-and-instructions/foreign-income-tax-offset-rules-guide-2024/calculate-your-fito-or-offset-limit | Marcus is an Australian resident for the year ended 30 June 2024 with a taxable income of $92,000. The ATO works out the income tax payable on his taxable income (including the 2% Medicare levy) as the first step of an offset-limit calculation. For 2023-24 the resident rates are: nil to $18,200; 19c per $1 from $18,201... | $20,367.00 | $22,207.00 | $20,367.02 | $31,740.00 | B | $22,207.00 | 22,207 | AUD | Kept taxable income within the 2023-24 $45,001-$120,000 bracket ($5,092 plus 32.5c for each $1 over $45,000) → Tax on income = 5,092 + (92,000 - 45,000) x 0.325 = 5,092 + 15,275 = 20,367 → Medicare levy = 92,000 x 0.02 = 1,840 → Income tax payable incl Medicare levy = 20,367 + 1,840 = 22,207 | {"$20,367.00": "Forgot to add the 2% Medicare levy", "$22,207.00": "Correct answer", "$20,367.02": "Added a flat 0.02 instead of 2% of taxable income for the Medicare levy", "$31,740.00": "Applied the 32.5% marginal rate to the whole income instead of only the amount over $45,000 (and dropped the base)"} | {"formula": "base + (taxable_income - threshold) * marginal_rate + taxable_income * medicare_rate", "params": {"taxable_income": 92000, "base": 5092, "threshold": 45000, "marginal_rate": 0.325, "medicare_rate": 0.02}, "expected": 22207.0} |
Q053 | Rental property | Apportioning loan interest where the loan is partly private (mixed-purpose loan) | Income tax (rental) | 2024-25 | medium | ["ITAA 1997 s 8-1", "TR 2000/2"] | https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses | Hugo and Delphine take out a single loan of $264,000, of which $220,000 is used to buy a rental property (as joint tenants) and $44,000 is used to buy a car solely for private use. The interest rate is 6.10% per annum and the property is rented from 1 July, so a whole year of interest applies. The total interest for ye... | $13,420 | $16,104 | $6,710 | $2,684 | A | $13,420 | 13,420 | AUD | Total interest for year 1 = 264,000 x 6.10% = 16,104 → Deductible portion = total interest x (rental property loan / total borrowings) → = 16,104 x (220,000 / 264,000) = 13,420 | {"$13,420": "Correct answer", "$16,104": "Claimed interest on the whole $209,000 loan, ignoring the private car portion", "$6,710": "Halved the deductible interest (confused the total deduction with one owner's 50% share)", "$2,684": "Apportioned using the private ($39,000) portion instead of the rental ($170,000) port... | {"formula": "total_loan * interest_rate * (rental_loan / total_loan)", "params": {"total_loan": 264000, "rental_loan": 220000, "interest_rate": 0.061}, "expected": 13420.0} |
Q054 | FBT | Type 1 aggregate amount – car plus GST-creditable meal expense (taxable employer) | Fringe benefits tax (car fringe benefits) | 2025-26 | medium | ["FBTAA 1986 s 5B", "FBTAA 1986 s 136(1)"] | https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2026-instructions/fbt-return-2026-calculation-details-for-taxable-employers | Stonefield Engineering Pty Ltd, a taxable employer, provides for the year ending 31 March 2026: a car for private use by its employee Aria valued using the statutory formula method with a taxable value of $13,500 (a GST taxable supply with an entitlement to a GST credit), and reimbursement of restaurant meals (elected ... | $15,000.00 | $28,082.70 | $28,302.00 | $31,203.00 | D | $31,203.00 | 31,203 | AUD | Total taxable value of type 1 fringe benefits = 13,500 (car) + 1,500 (meal expense) = 15,000 → Multiply by the higher (type 1) gross-up rate of 2.0802 → 15,000 x 2.0802 = 31,203.00 | {"$15,000.00": "Forgot to apply the gross-up rate", "$28,082.70": "Omitted the $1,500 GST-creditable meal expense fringe benefit", "$28,302.00": "Used the type 2 gross-up rate 1.8868 instead of the type 1 rate 2.0802", "$31,203.00": "Correct answer"} | {"formula": "(car_value + meal_expense) * type1_rate", "params": {"car_value": 13500, "meal_expense": 1500, "type1_rate": 2.0802, "type2_rate": 1.8868}, "expected": 31203.0} |
Q055 | Division 7A & Company Tax | Division 7A minimum yearly repayment – first year (amortisation formula) | Income tax (Division 7A deemed dividend) | 2014-15 | hard | ["ITAA 1936 s 109E", "ITAA 1936 s 109N"] | https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/private-company-benefits-division-7a-dividends/in-detail/division-7a-loans | During the 2014 income year Marrowdale Holdings Pty Ltd, a private company, made unsecured complying loans of $70,000 and $40,000 to a shareholder, each with a 7-year term. Before the lodgment day, $28,000 of principal was repaid, so the amount of the amalgamated loan not repaid by the end of the 2014 income year is $8... | $11,714.29 | $16,649.55 | $14,662.98 | $4,879.00 | C | $14,662.98 | 14,662.98 | AUD | Amount of loan not repaid by end of previous (2014) income year P = 82,000 → 2015 benchmark interest rate I = 5.95% (0.0595); remaining term T = 7 years → Step 1: P x I = 82,000 x 0.0595 = 4,879.00 → Step 2: 1 / (1 + I) = 1 / 1.0595 = 0.943841435 → Step 3: 0.943841435 ^ 7 = 0.667257208 → Step 4: 1 - 0.667257208 = 0.332... | {"$11,714.29": "Used straight-line principal repayment (loan / term) and ignored interest entirely", "$16,649.55": "Used remaining term of 6 years instead of 7", "$14,662.98": "Correct answer", "$4,879.00": "Charged only one year's benchmark interest instead of amortising the loan over the remaining term"} | {"formula": "(P * I) / (1 - (1 / (1 + I)) ** T)", "params": {"P": 82000, "I": 0.0595, "T": 7}, "expected": 14662.98} |
Q056 | FBT | Type 1 aggregate amount – multiple car fringe benefits grossed up (rebatable employer item 14A) | Fringe benefits tax (car fringe benefits) | 2023-24 | medium | ["FBTAA 1986 s 5B", "FBTAA 1986 s 65J"] | https://www.ato.gov.au/forms-and-instructions/fringe-benefits-tax-return-2024-instructions/worked-examples-not-for-profit-employers-completing-your-fbt-return | Harbourlight Community Care, a rebatable not-for-profit employer, provides cars for private use to two employees, Tobias and Ingrid, for the year ending 31 March 2024. The car fringe benefits are type 1 benefits (GST taxable supplies with an entitlement to a GST credit). Tobias's car fringe benefit, calculated using th... | $33,730.44 | $71,766.90 | $34,500.00 | $65,094.60 | B | $71,766.90 | 71,766.9 | AUD | Total car fringe benefits = 18,000 (Tobias) + 16,500 (Ingrid) = 34,500 → Car fringe benefits are type 1 benefits (GST credit available), so use the higher gross-up rate 2.0802 → 34,500 x 2.0802 = 71,766.90 | {"$33,730.44": "Applied the 47% FBT rate to the aggregate amount instead of reporting the grossed-up aggregate", "$71,766.90": "Correct answer", "$34,500.00": "Forgot to apply the gross-up rate", "$65,094.60": "Used the type 2 gross-up rate 1.8868 instead of the type 1 rate 2.0802"} | {"formula": "(mark_car + sam_car) * type1_rate", "params": {"mark_car": 18000, "sam_car": 16500, "type1_rate": 2.0802, "type2_rate": 1.8868}, "expected": 71766.9} |
Q057 | Depreciation | Prime cost method – first-year part-year apportionment by days | Income tax (capital allowances, Div 40) | 2021-22 | medium | ["ITAA 1997 s 40-25", "ITAA 1997 s 40-75"] | https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules-capital-allowances/prime-cost-straight-line-and-diminishing-value-methods | Mei purchased a commercial oven for $3,500 and originally used it privately. She started a catering business and began using the oven wholly for that business from 1 April 2022. She uses the prime cost method and adopts the Commissioner's effective life for the oven of 8 years. There are 91 days between 1 April 2022 an... | $110.27 | $437.50 | $220.55 | $882.19 | A | $110.27 | 110.27 | AUD | Prime cost formula: cost x (days held / 365) x (100% / effective life) → Rate = 100% / 8 years = 12.5% → Decline in value = 3,500 x (92 / 365) x 12.5% = 110.27, rounded to 110 | {"$110.27": "Correct answer", "$437.50": "Claimed a full year's deduction, ignoring the 92-day part-year apportionment", "$220.55": "Applied the diminishing value 200% rate instead of the prime cost 100% rate", "$882.19": "Apportioned by days but forgot to apply the 1/effective-life rate"} | {"formula": "cost * (days_held / days_year) * (1 / effective_life)", "params": {"cost": 3500, "days_held": 92, "days_year": 365, "effective_life": 8, "dv_factor": 2.0}, "expected": 110.27} |
Q058 | FBT | Minor benefits – notional value exactly $300 (boundary, not under $300) | Fringe benefits tax | 2024-25 | hard | ["FBTAA 1986 s 58P", "FBTAA 1986 s 136(1)"] | https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/exemptions-concessions-and-other-ways-to-reduce-fbt/minor-benefits-exemption | Coastline Pty Ltd gives an employee a gift with a notional taxable value of exactly $300. The employer is registered for GST and is entitled to a GST credit on the gift (a Type 1 benefit). The minor benefits exemption requires the notional taxable value to be LESS than $300.
What is the FBT payable on this benefit (th... | $141.00 | $266.04 | $0.00 | $293.31 | D | $293.31 | 293.31 | AUD | The minor benefits exemption applies only where the notional taxable value is LESS than $300 → Here the value is exactly $300, so the exemption does NOT apply and the benefit is taxable → It is a Type 1 benefit (GST credit available): grossed-up value = $300 x 2.0802 = $624.06 → FBT payable = $624.06 x 47% = $293.31 | {"$141.00": "Applied 47% FBT to the taxable value without grossing it up", "$266.04": "Used the Type 2 gross-up rate (1.8868) even though a GST credit was available", "$0.00": "Assumed $300 qualifies for the minor benefits exemption, but the test is LESS than $300, so the exemption does not apply", "$293.31": "Correct ... | {"formula": "round(notional_value * gross_up_t1 * fbt_rate, 2)", "params": {"notional_value": 300, "gross_up_t1": 2.0802, "gross_up_t2": 1.8868, "fbt_rate": 0.47}, "expected": 293.31} |
Q059 | Employment | Genuine redundancy – ETP excess over the tax-free limit (base + service × years) | Income tax (employment termination) | 2023-24 | medium | ["ITAA 1997 s 83-170", "ITAA 1997 s 83-175", "ITAA 1997 s 82-10"] | https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/when-a-worker-leaves-your-business/taxation-of-termination-payments/redundancy-and-early-retirement | Marcus is made genuinely redundant in 2023-24 after 8 completed years of service. The genuine redundancy part of his payment is $95,000. On termination he is also paid out $7,000 of unused annual leave, which is taxed separately and is NOT part of the genuine redundancy payment. Marcus is 61 years old. For 2023-24 the ... | $77,021 | $59,937 | $42,063 | $35,063 | D | $35,063 | 35,063 | AUD | Tax-free limit = base + (service × years) = 11,985 + (5,994 × 8) = 11,985 + 47,952 = 59,937 → Marcus's age (61) and the $7,000 unused annual leave are not used in this calculation: the tax-free limit depends only on completed years of service, and unused annual leave is taxed separately (not part of the genuine redunda... | {"$77,021": "Used only one year's service amount instead of multiplying by the 8 completed years", "$59,937": "Reported the tax-free limit itself instead of the ETP amount in excess of it", "$42,063": "Wrongly added the $7,000 unused annual leave into the genuine redundancy part (annual leave is taxed separately, not p... | {"formula": "genuine_part - (base + service*years)", "params": {"genuine_part": 95000, "base": 11985, "service": 5994, "years": 8, "age": 61, "annual_leave": 7000}, "expected": 35063.0} |
Q060 | Depreciation | Balancing adjustment on disposal – assessable (termination value > adjustable value) | Income tax (capital allowances, Div 40) | 2019-20 | easy | ["ITAA 1997 s 40-285", "ITAA 1997 s 40-300"] | https://www.ato.gov.au/forms-and-instructions/depreciating-assets-guide-2020/what-happens-if-you-no-longer-hold-or-use-a-depreciating-asset | Oksana purchased a workbench that she held for two years and used wholly for a taxable purpose. She then sold the workbench for $2,100. Its adjustable value at the time of sale was $1,850. A balancing adjustment event occurs on disposal: you compare the termination value (sale proceeds) with the adjustable value.
What... | -$250 | -$300 | $550 | $250 | D | $250 | 250 | AUD | Termination value (sale proceeds) = 2,100 → Adjustable value at time of sale = 1,850 → Termination value exceeds adjustable value, so the excess is assessable: 2,100 - 1,850 = 250 | {"-$250": "Subtracted the wrong way round (treated it as a deductible amount instead of assessable)", "-$300": "Compared the termination value with the original cost instead of the adjustable value", "$550": "Used the original cost instead of the termination value", "$250": "Correct answer"} | {"formula": "termination_value - adjustable_value", "params": {"termination_value": 2100, "adjustable_value": 1850, "cost": 2400}, "expected": 250.0} |
Q061 | Employment | PAYG instalments – instalment rate method (instalment income × rate) | Income tax (PAYG instalments) | 2024-25 | easy | ["TAA 1953 Sch 1 s 45-110", "TAA 1953 Sch 1 s 45-15"] | https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/payg-instalments/calculate-your-payg-instalments | Harbour Co pays PAYG instalments using the instalment rate (option 2). Its instalment income for the quarter (T1) is $148,000. The instalment rate provided by the ATO (T2) is 11%. The instalment amount is calculated as T1 × T2.
What is Harbour Co's PAYG instalment amount for the quarter?
A. $16,280.00
B. $1,345,454.5... | $16,280.00 | $1,345,454.55 | $148,000.00 | $162.80 | A | $16,280.00 | 16,280 | AUD | PAYG instalment (option 2) = instalment income (T1) × instalment rate (T2) → = $148,000 × 11% → = $16,280 | {"$16,280.00": "Correct answer", "$1,345,454.55": "Divided by the instalment rate instead of multiplying by it", "$148,000.00": "Reported the instalment income as the amount payable without applying the instalment rate", "$162.80": "Divided the already-decimal rate by 100 again, treating 11% as 0.11%"} | {"formula": "instalment_income * rate", "params": {"instalment_income": 148000, "rate": 0.11}, "expected": 16280.0} |
Q062 | Superannuation | Division 293 – income exactly at the $250,000 threshold | Income tax (Division 293) | 2024-25 | medium | ["ITAA 1997 s 293-15", "ITAA 1997 s 293-20", "ITAA 1997 Div 293"] | https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/division-293-tax | Helena's Division 293 income (her income for surcharge purposes plus her low-tax/concessional contributions) is exactly $250,000 for 2024-25, made up of $225,000 income plus $25,000 of concessional contributions. Division 293 tax is 15% and is payable only on the amount OVER the $250,000 threshold (taking the lesser of... | $0.00 | $0.15 | $37,500.00 | $3,750.00 | A | $0.00 | 0 | AUD | Division 293 tax applies to the excess OVER $250,000, not at the threshold. → Excess = 250,000 - 250,000 = 0. → Taxable contributions for Division 293 = lesser of the excess (0) and contributions ($25,000) = 0. → Division 293 tax = 0 x 0.15 = 0. | {"$0.00": "Correct answer", "$0.15": "Treated income at the threshold as $1 over and charged 15c", "$37,500.00": "Applied the 15% rate to the entire $250,000 of income", "$3,750.00": "Charged 15% on all $25,000 of concessional contributions, ignoring that nothing is over the threshold"} | {"formula": "max(0, min(div293_income - threshold, concessional)) * div293_rate", "params": {"div293_income": 250000, "threshold": 250000, "div293_rate": 0.15, "concessional": 25000}, "expected": 0.0} |
Q063 | Division 7A & Company Tax | Under-franking debit to the franking account | Income tax (imputation) | 2017-18 | medium | ["ITAA 1997 s 203-50", "ITAA 1997 s 205-30"] | https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/in-detail/how-to-calculate-over-franking-tax-and-under-franking-debit | Re Pty Ltd has a 30% corporate tax rate for imputation purposes (gross-up rate 2.33333) and a benchmark franking percentage of 50%. On 18 December 2017 it makes a frankable distribution of $12,500 but chooses to allocate no franking credits to it, so it under-franks. The under-franking debit = frankable distribution x ... | $2,678.58 | $5,357.15 | $6,250.00 | $2,370.66 | A | $2,678.58 | 2,678.58 | AUD | Frankable distribution = 12,500; benchmark franking percentage = 50%; actual franking = 0% → Franking percentage differential = 50% - 0% = 50% → Gross-up rate (30% rate) = (100% - 30%) / 30% = 2.33333 → Under-franking debit = 12,500 x 50% / 2.33333 = 2,678.58 | {"$2,678.58": "Correct answer", "$5,357.15": "Calculated the maximum franking credit on the whole distribution instead of the 50% under-franked portion", "$6,250.00": "Multiplied the distribution by the differential but forgot to divide by the gross-up rate", "$2,370.66": "Used the 27.5% base-rate-entity gross-up rate ... | {"formula": "distribution * franking_differential / gross_up_rate", "params": {"distribution": 12500, "franking_differential": 0.5, "gross_up_rate": 2.33333}, "expected": 2678.58} |
Q064 | Study and training loans | HELP/student loan – 2024-25 flat rate on TOTAL income, at a band boundary | Compulsory study and training loan repayment | 2024-25 | hard | ["Higher Education Support Act 2003 s 154-1", "Higher Education Support Act 2003 s 154-20"] | https://www.ato.gov.au/tax-rates-and-codes/study-and-training-support-loans-rates-and-repayment-thresholds | Sam has a HELP debt and repayment income of exactly $62,851 for 2024-25 - the first dollar of the 2.0% band ($62,851 - $66,620). For 2024-25 and earlier years the compulsory repayment is a flat percentage of the WHOLE repayment income (not a marginal calculation): once repayment income reaches a band, the band's rate a... | $168.32 | $628.51 | $0.00 | $1,257.02 | D | $1,257.02 | 1,257.02 | AUD | Repayment income $62,851 is the first dollar of the 2024-25 2.0% band ($62,851 - $66,620). → For 2024-25 the rate applies to the WHOLE repayment income, not the amount over a threshold. → Repayment = 62,851 x 0.02 = 1,257.02. | {"$168.32": "Charged 2% only on the amount over the nil threshold (marginal thinking), which doesn't apply for 2024-25", "$628.51": "Used the 1.0% rate from the band below instead of the 2.0% band the income falls in", "$0.00": "Charged 2% only on the excess over the band floor, giving $0", "$1,257.02": "Correct answer... | {"formula": "repayment_income * rate", "params": {"repayment_income": 62851, "rate": 0.02, "lower_rate": 0.01, "nil_threshold": 54435}, "expected": 1257.02} |
Q065 | Individual income tax | Taxable income from salary plus interest less a deduction, then income tax plus Medicare levy | Income tax (individual) | 2023-24 | hard | ["ITAA 1997 s 4-10", "ITAA 1997 s 6-5", "ITAA 1997 s 8-1", "Income Tax Rates Act 1986 Sch 7", "Medicare Levy Act 1986 s 6"] | https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents | Tom is an Australian resident for the year ended 30 June 2024. He earns a salary of $105,000 and $1,200 of bank interest, and has $2,300 of deductible work-related expenses. During the year he also received a $5,000 inheritance from his late aunt; an inheritance is a capital receipt and is not assessable income. For 20... | $24,234.50 | $27,106.00 | $26,312.50 | $28,037.50 | C | $26,312.50 | 26,312.5 | AUD | The $5,000 inheritance is a non-assessable capital receipt and is excluded from income → Taxable income = salary 105,000 + bank interest 1,200 − deduction 2,300 = 103,900 → Income tax (2023-24 bracket $45,001-$120,000) = 5,092 + (103,900 − 45,000) × 0.325 = 5,092 + 19,142.50 = 24,234.50 → Medicare levy = 103,900 × 0.02... | {"$24,234.50": "Forgot to add the 2% Medicare levy", "$27,106.00": "Forgot to subtract the $2,300 of deductible work-related expenses", "$26,312.50": "Correct answer", "$28,037.50": "Wrongly included the $5,000 inheritance (a non-assessable capital receipt) in taxable income"} | {"formula": "base + ((salary + bank_interest - deduction) - threshold) * marginal_rate + (salary + bank_interest - deduction) * medicare_rate", "params": {"salary": 105000, "bank_interest": 1200, "deduction": 2300, "inheritance": 5000, "base": 5092, "threshold": 45000, "marginal_rate": 0.325, "medicare_rate": 0.02}, "e... |
Q066 | Individual income tax | Tax-free threshold effect on base income tax | Income tax (individual) | 2021-22 | easy | ["ITAA 1997 s 4-10", "Income Tax Rates Act 1986 Sch 7"] | https://www.ato.gov.au/forms-and-instructions/low-and-middle-income-earner-tax-offsets | Damien has a taxable income of $40,000 for the 2021-22 income year, and the ATO states his basic tax payable on this amount. For 2021-22 the first $18,200 is tax-free (the tax-free threshold) and income from $18,201 to $45,000 is taxed at 19c for each $1 over $18,200. This figure is the basic income tax before any offs... | $7,085 | $4,578 | $7,600 | $4,142 | D | $4,142 | 4,142 | AUD | Kept taxable income within the 2021-22 $18,201-$45,000 bracket (19c in the dollar over the tax-free threshold) → The first $18,200 is tax-free (tax-free threshold); only income over $18,200 is taxed at 19c → Tax = (40,000 - 18,200) x 0.19 = 21,800 x 0.19 = 4,142 | {"$7,085": "Applied the 32.5% rate (the next bracket up) instead of 19%", "$4,578": "Added a Medicare levy even though the stated figure is income tax only", "$7,600": "Ignored the tax-free threshold and taxed the whole $40,000 at 19%", "$4,142": "Correct answer"} | {"formula": "(taxable_income - tax_free_threshold) * marginal_rate", "params": {"taxable_income": 40000, "tax_free_threshold": 18200, "marginal_rate": 0.19}, "expected": 4142.0} |
Q067 | Individual income tax | Part-year resident pro-rated tax-free threshold (leaving Australia) | Income tax (individual) | 2024-25 | medium | ["Income Tax Rates Act 1986 s 20", "Income Tax Rates Act 1986 s 16"] | https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/living-overseas-and-becoming-a-foreign-tax-resident | Carla left Australia permanently and became a foreign resident on 14 October 2024. She is entitled to 4 months (July to October, counting the month she left) of the tax-free threshold. A part-year resident's tax-free threshold is a flat $13,464 plus $4,736 divided by 12 and multiplied by the number of resident months.
... | $6,066.67 | $18,200.00 | $1,578.67 | $15,042.67 | D | $15,042.67 | 15,042.67 | AUD | Kept resident_months within the valid 1-12 month range (4 of 12 months) → Flat component = $13,464 → Apportioned component = ($4,736 / 12) x 4 = 394.67 x 4 = 1,578.67 → Tax-free threshold = 13,464 + 1,578.67 = 15,042.67 | {"$6,066.67": "Apportioned the whole $18,200 threshold instead of only the $4,736 component", "$18,200.00": "Gave the full $4,736 additional amount instead of apportioning it for 4 months", "$1,578.67": "Pro-rated only the $4,736 component and dropped the flat $13,464 entirely", "$15,042.67": "Correct answer"} | {"formula": "flat_amount + (apportioned_amount / total_months) * resident_months", "params": {"flat_amount": 13464, "apportioned_amount": 4736, "resident_months": 4, "total_months": 12}, "expected": 15042.67} |
Q068 | Superannuation | Contributions tax – net deductible personal contribution after 15% tax | Superannuation (contributions tax) | 2019-20 | medium | ["ITAA 1997 s 290-150", "ITAA 1997 s 295-160", "ITAA 1997 s 295-190"] | https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/personal-super-contributions | During 2019-20 Tobias is employed as a barber and earns $42,000. He contributes $7,500 to his super fund as a personal contribution and decides to claim an income tax deduction for $6,000 of it (giving his fund a valid notice of intent). A deductible personal contribution is a concessional contribution, on which the su... | $5,100 | $6,000 | $6,375 | $900 | A | $5,100 | 5,100 | AUD | Deductible (concessional) personal contribution = $6,000 → Super fund pays 15% contributions tax: 6,000 x 0.15 = $900 → Amount credited to the account = 6,000 - 900 = $5,100 (i.e. 6,000 x 0.85) | {"$5,100": "Correct answer", "$6,000": "Forgot the 15% contributions tax the fund pays on concessional contributions", "$6,375": "Taxed the whole $7,500 contribution rather than only the $6,000 claimed as a deduction", "$900": "Reported the $900 tax instead of the net amount credited"} | {"formula": "contribution * (1 - contrib_tax_rate)", "params": {"contribution": 6000, "contrib_tax_rate": 0.15, "full_contribution": 7500}, "expected": 5100.0} |
Q069 | Depreciation | Balancing adjustment on disposal – reduced for non-taxable (private) use | Income tax (capital allowances, Div 40) | 2019-20 | medium | ["ITAA 1997 s 40-285", "ITAA 1997 s 40-290"] | https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules-capital-allowances/disposing-or-ceasing-to-use-a-depreciating-asset | Greta receives $21,000 for a van she used in her business. The van has been used 30% of the time for private purposes (so 70% for a taxable purpose). At the time of sale the van's adjustable value is $30,000. Because the termination value ($21,000) is less than the adjustable value ($30,000) the raw balancing adjustmen... | $2,700 | $6,300 | -$6,300 | $9,000 | B | $6,300 | 6,300 | AUD | Raw balancing adjustment = adjustable value - termination value = 30,000 - 21,000 = 9,000 (a deduction) → Reduce to the 70% taxable-use proportion: 9,000 x 70% = 6,300 → Greta can claim a $6,300 deduction | {"$2,700": "Applied the 30% private-use percentage instead of the 70% taxable-use percentage", "$6,300": "Correct answer", "-$6,300": "Reversed the subtraction, turning a deduction into an assessable amount", "$9,000": "Forgot to reduce the balancing adjustment for the 30% private use"} | {"formula": "(adjustable_value - termination_value) * taxable_pct", "params": {"adjustable_value": 30000, "termination_value": 21000, "taxable_pct": 0.7, "private_pct": 0.3}, "expected": 6300.0} |
Q070 | GST | GST credit on equipment – 1/11 of the GST-inclusive cost | GST | 2025-26 | easy | ["GST Act s 11-20", "GST Act s 11-25", "GST Act s 29-10"] | https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/claiming-gst-credits/when-you-can-claim-a-gst-credit | BR Holdings reports GST monthly and accounts for GST on a cash basis. BR Holdings purchases equipment for $9,900 (including GST) and ultimately pays the full amount and holds a valid tax invoice, so it is entitled to the full GST credit on the purchase.
What is the total GST credit BR Holdings can claim on the $9,900 ... | $900.00 | $825.00 | $990.00 | $81.82 | A | $900.00 | 900 | AUD | The equipment is a creditable purchase and BR Holdings holds a tax invoice → GST credit = one eleventh of the GST-inclusive purchase price → GST credit = 9,900 / 11 = 900 | {"$900.00": "Correct answer", "$825.00": "Divided the price by the wrong divisor (12) instead of 11", "$990.00": "Took 10% of the GST-inclusive price instead of 1/11", "$81.82": "Divided by 11 twice"} | {"formula": "purchase_price / 11", "params": {"purchase_price": 9900}, "expected": 900.0} |
Q071 | Income tests | Rebate income – SAPTO shading-out (each partner of a couple) | Income tax – seniors and pensioners tax offset | 2024-25 | medium | ["ITAA 1936 s 160AAAA", "Income Tax Assessment (1936 Act) Regulation 2015"] | https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/tax-offsets/seniors-and-pensioners-tax-offset | Walter and Maureen are a married couple living together. Walter receives an age pension; Maureen has not reached age-pension age and is not eligible. Walter's rebate income is $37,800 (Maureen's is nil), and his determined rebate income is below the couple cut-out threshold, so he is eligible. The couple maximum SAPTO ... | -$3,123.00 | $751.25 | $1,602.00 | $1,379.25 | B | $751.25 | 751.25 | AUD | Walter's rebate income $37,800 is above the $30,994 couple shading-out threshold but below the $43,810 couple cut-out, so it stays within the same shade-out segment as the base example → Walter's actual rebate income above the couple shading-out threshold = 37,800 - 30,994 = 6,806 → Reduction = 6,806 x 0.125 = 850.75 →... | {"-$3,123.00": "Reduced by 12.5% of total rebate income instead of only the amount over the shading-out threshold", "$751.25": "Correct answer", "$1,602.00": "Ignored the shading-out reduction and claimed the full couple maximum $1,602", "$1,379.25": "Used the single maximum $2,230 instead of the couple rate $1,602"} | {"formula": "max_offset - (rebate_income - shade_threshold) * reduction_rate", "params": {"rebate_income": 37800, "max_offset": 1602, "shade_threshold": 30994, "reduction_rate": 0.125, "single_max": 2230}, "expected": 751.25} |
Q072 | Company tax | Company tax rate – NOT a base rate entity (passive income over 80%) | Income tax (company) | 2024-25 | hard | ["ITRA 1986 s 23", "ITAA 1997 s 23AA", "ITAA 1997 s 23AB"] | https://www.ato.gov.au/tax-rates-and-codes/company-tax-rate-changes | Sterling Holdings Pty Ltd has aggregated turnover of $4 million for the 2024-25 income year, which is under the $50 million threshold. Its assessable income is $200,000, of which 90% is base rate entity passive income (rent, interest and unfranked dividends). Its taxable income is also $200,000.
What is Sterling Holdi... | $60,000 | $10,000 | $55,000 | $50,000 | A | $60,000 | 60,000 | AUD | Aggregated turnover is under $50m, but the company is a base rate entity only if 80% or less of assessable income is base rate entity passive income → Here 90% of assessable income is passive income, which is more than 80%, so the company is NOT a base rate entity → The full 30% company tax rate applies: $200,000 x 30%... | {"$60,000": "Correct answer", "$10,000": "Applied only the 5% rate differential instead of the full 30% rate", "$55,000": "Used the superseded 27.5% base rate entity rate from an earlier income year", "$50,000": "Applied the 25% base rate entity rate, ignoring that passive income over 80% disqualifies the company"} | {"formula": "taxable_income * rate_full", "params": {"taxable_income": 200000, "rate_full": 0.3, "rate_bre": 0.25, "rate_old": 0.275}, "expected": 60000.0} |
Q073 | Depreciation | Diminishing value method – first year | Income tax (capital allowances, Div 40) | 2024-25 | easy | ["ITAA 1997 s 40-25", "ITAA 1997 s 40-70", "ITAA 1997 s 40-72"] | https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules-capital-allowances/prime-cost-straight-line-and-diminishing-value-methods | A survey instrument cost $50,000 and has an effective life of 4 years. It was first held on the first day of the income year (held all 365 days) and is used wholly for a taxable purpose by Coastline Surveys. The asset was started to be held after 10 May 2006, so the 200% diminishing value rate applies. In the first yea... | $18,750 | $25,000 | $6,250 | $12,500 | B | $25,000 | 25,000 | AUD | Diminishing value formula: base value x (days held / 365) x (200% / effective life) → Rate = 200% / 4 years = 50% → Decline in value = 50,000 x (365 / 365) x 50% = 25,000 | {"$18,750": "Used the old 150% diminishing value rate (for assets held before 10 May 2006)", "$25,000": "Correct answer", "$6,250": "Divided by the effective life twice", "$12,500": "Used the prime cost 100% rate instead of the diminishing value 200% rate"} | {"formula": "base_value * (days_held / days_year) * (dv_factor / effective_life)", "params": {"base_value": 50000, "days_held": 365, "days_year": 365, "effective_life": 4, "dv_factor": 2.0, "pc_factor": 1.0}, "expected": 25000.0} |
Q074 | Employment | ETP – tax on the redundancy amount above the tax-free limit (30% rate + 2% Medicare) | Income tax (employment termination) | 2023-24 | hard | ["ITAA 1997 s 82-10", "ITAA 1997 s 83-170", "ITAA 1997 s 83-175", "Medicare Levy Act 1986 s 6"] | https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/leaving-your-job/how-etp-components-are-taxed | Bianca is made genuinely redundant in 2023-24 after 9 completed years of service and is below her preservation age. The genuine redundancy part of her payment is $120,000. For 2023-24 the tax-free limit is the base amount $11,985 plus the service amount $5,994 for each completed year of service. The part above the tax-... | $17,302.08 | $38,400.00 | $16,220.70 | $32,646.72 | A | $17,302.08 | 17,302.08 | AUD | Tax-free limit = base + (service × years) = 11,985 + (5,994 × 9) = 11,985 + 53,946 = 65,931 → Taxable ETP component = genuine redundancy part − tax-free limit = 120,000 − 65,931 = 54,069 → As it is under the ETP cap and Bianca is below preservation age, tax = 30% + 2% Medicare = 32% → Tax = 54,069 × 0.32 = 17,302.08 | {"$17,302.08": "Correct answer", "$38,400.00": "Taxed the whole $120,000 redundancy payment at 32%, ignoring the tax-free limit", "$16,220.70": "Applied only the 30% ETP rate and forgot the 2% Medicare levy", "$32,646.72": "Used only one year's service amount instead of multiplying by the 9 completed years"} | {"formula": "(genuine_part - (base + service*years)) * (etp_rate + medicare_rate)", "params": {"genuine_part": 120000, "base": 11985, "service": 5994, "years": 9, "etp_rate": 0.3, "medicare_rate": 0.02}, "expected": 17302.08} |
Q075 | CGT | CGT discount method – land | Income tax (CGT) | 2024-25 | easy | ["ITAA 1997 s 104-10", "ITAA 1997 s 115-25", "ITAA 1997 s 115-100"] | https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/how-to-calculate-your-cgt | Priya, an Australian resident, buys a vacant block of land. She owns it for 22 months and sells it, making a profit (capital gain before discount) of $24,000. She has no capital losses.
What capital gain will Priya declare in her tax return after applying the CGT discount?
A. $6,000
B. $12,000
C. $48,000
D. $24,000 | $6,000 | $12,000 | $48,000 | $24,000 | B | $12,000 | 12,000 | AUD | Capital gain before discount = 24,000 → Priya owned the land for at least 12 months as an Australian resident, so she is entitled to the 50% CGT discount → Apply 50% CGT discount: 24,000 x 0.5 = 12,000 | {"$6,000": "Applied the 50% discount twice (halved the already-discounted gain)", "$12,000": "Correct answer", "$48,000": "Divided by 0.5 instead of multiplying, doubling the gain", "$24,000": "Forgot to apply the 50% CGT discount and declared the full gain"} | {"formula": "gain * discount_rate", "params": {"gain": 24000, "discount_rate": 0.5}, "expected": 12000.0} |
Q076 | Superannuation | Division 293 – tax on the lesser of excess over threshold and contributions | Income tax (Division 293) | 2024-25 | hard | ["ITAA 1997 s 293-15", "ITAA 1997 s 293-20", "ITAA 1997 s 293-25"] | https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/division-293-tax | Raj has taxable income (income for surcharge purposes) of $280,000 for 2024-25 and $25,000 of concessional (low-tax) contributions, giving Division 293 income of $305,000. Division 293 tax is 15%, charged on the LESSER of (a) the amount of Division 293 income over the $250,000 threshold and (b) the low-tax contribution... | $4,500 | $3,750 | $8,250 | $7,500 | B | $3,750 | 3,750 | AUD | Division 293 income = 280,000 + 25,000 = 305,000. → Excess over threshold = 305,000 - 250,000 = 55,000. → Tax base = lesser of the excess (55,000) and the contributions (25,000) = 25,000. → Division 293 tax = 25,000 x 0.15 = 3,750. | {"$4,500": "Computed the excess from taxable income only ($30,000), forgetting to add the contributions when comparing to the threshold", "$3,750": "Correct answer", "$8,250": "Charged 15% on the full $55,000 excess instead of the lesser-of $25,000 contributions", "$7,500": "Applied a 30% rate instead of the 15% Divisi... | {"formula": "min((taxable_income + concessional) - threshold, concessional) * div293_rate", "params": {"taxable_income": 280000, "concessional": 25000, "threshold": 250000, "div293_rate": 0.15}, "expected": 3750.0} |
Q077 | FBT | Minor benefits exemption – infrequent benefit under $300 | Fringe benefits tax | 2024-25 | medium | ["FBTAA 1986 s 58P", "FBTAA 1986 s 136(1)"] | https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/exemptions-concessions-and-other-ways-to-reduce-fbt/minor-benefits-exemption | Brightwater Pty Ltd gives one of its employees, Dana, a hamper with a notional taxable value of $275 as a one-off gift after she returns from parental leave. The employer is registered for GST and would be entitled to a GST credit on the hamper. No similar benefits are provided to Dana during the FBT year and it would ... | $275.00 | $243.87 | $0.00 | $268.87 | C | $0.00 | 0 | AUD | Notional taxable value of the hamper = $275, which is less than $300 → The benefit is provided once (infrequent and irregular) and it would be unreasonable to treat it as a fringe benefit → The minor benefits exemption (s 58P) applies, so the benefit is exempt and the taxable value is $0 | {"$275.00": "Used the notional value $275 as the taxable value, missing that the minor benefits exemption makes it $0", "$243.87": "Treated the exempt minor benefit as taxable and grossed it up at the Type 2 rate then applied 47% FBT", "$0.00": "Correct answer", "$268.87": "Treated the exempt benefit as a taxable Type ... | {"formula": "0 * notional_value", "params": {"notional_value": 275, "gross_up_t1": 2.0802, "gross_up_t2": 1.8868, "fbt_rate": 0.47}, "expected": 0.0} |
Q078 | Superannuation | Carry-forward of unused concessional contributions cap | Superannuation (concessional contributions cap) | 2021-22 | medium | ["ITAA 1997 s 291-20", "ITAA 1997 s 291-25"] | https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap | Diego has contributed less than his concessional contributions cap for several years and has accumulated $52,000 of unused concessional cap carried forward into 2021-22 (from 2018-19 to 2020-21). At 30 June 2021 his total super balance is below $500,000, so he is eligible to use his carried-forward amounts. The standar... | $41,500 | $27,500 | $79,500 | $82,000 | C | $79,500 | 79,500 | AUD | Carried-forward unused concessional cap entering 2021-22 = $52,000 → Add the standard 2021-22 concessional contributions cap of $27,500 (cap kept fixed from the base example) → Maximum concessional contributions Diego can make = 52,000 + 27,500 = $79,500 | {"$41,500": "Subtracted the $38,000 Diego actually contributed, which the cap headroom does not deduct", "$27,500": "Ignored the carried-forward unused cap and used only the annual cap", "$79,500": "Correct answer", "$82,000": "Added the 2024-25 cap of $30,000 instead of the 2021-22 cap of $27,500"} | {"formula": "accumulated_unused + annual_cap_2122", "params": {"accumulated_unused": 52000, "annual_cap_2122": 27500, "annual_cap_2425": 30000, "contributed_2122": 38000}, "expected": 79500.0} |
Q079 | Rental property | Apportioning expenses where the property is rented for only part of the year (days) | Income tax (rental) | 2024-25 | easy | ["ITAA 1997 s 8-1"] | https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses | Spencer owns a property in Tasmania. He rents it out from 1 October 2024 to 7 May 2025, a total of 219 days, and lives in it alone for the rest of the year. The council rates are $1,650 per year. He apportions the council rates on a time basis (days rented).
What council rates deduction can Spencer claim against his r... | $1,650.00 | $987.30 | $990.00 | $660.00 | C | $990.00 | 990 | AUD | Apportion the annual rates by the portion of the year rented: 1,650 x (219 / 365) → = 1,650 x 0.6000 = 990 | {"$1,650.00": "Claimed the full year of council rates without apportioning for the private-use period", "$987.30": "Divided by 366 instead of 365", "$990.00": "Correct answer", "$660.00": "Apportioned using the private-use days (215) instead of the days rented (150)"} | {"formula": "council_rates * days_rented / days_in_year", "params": {"council_rates": 1650, "days_rented": 219, "days_in_year": 365}, "expected": 990.0} |
Q080 | Individual income tax | Low income tax offset (LITO) taper | Income tax offset | 2021-22 | medium | ["ITAA 1936 s 159N", "ITAA 1997 s 61-570"] | https://www.ato.gov.au/forms-and-instructions/low-and-middle-income-earner-tax-offsets | Naomi's taxable income is $42,000 for 2021-22. The ATO works out her low income tax offset (LITO) as the maximum offset of $700 minus 5 cents for every dollar of taxable income above $37,500.
What is Naomi's low income tax offset (LITO) amount for 2021-22?
A. $632.50
B. $700.00
C. $475.00
D. -$1,400.00 | $632.50 | $700.00 | $475.00 | -$1,400.00 | C | $475.00 | 475 | AUD | Kept taxable income within the 2021-22 LITO 5c taper band ($37,501-$45,000) → LITO = $700 minus 5 cents for every $1 above $37,500 → Income above the taper start = 42,000 - 37,500 = 4,500 → Reduction = 4,500 x 0.05 = 225 → LITO = 700 - 225 = 475 | {"$632.50": "Used the 1.5c taper rate (which only applies above $45,000) instead of 5c", "$700.00": "Gave the full $700 LITO without applying the taper above $37,500", "$475.00": "Correct answer", "-$1,400.00": "Applied the 5c taper to the whole taxable income instead of only the amount over $37,500"} | {"formula": "max_offset - (taxable_income - taper_start) * taper_rate", "params": {"taxable_income": 42000, "max_offset": 700, "taper_start": 37500, "taper_rate": 0.05}, "expected": 475.0} |
Q081 | CGT | Capital loss is never discounted – loss applied at full value | Income tax (CGT) | 2024-25 | medium | ["ITAA 1997 s 102-10", "ITAA 1997 s 110-55", "ITAA 1997 s 115-100"] | https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/how-to-calculate-your-cgt | In the 2024-25 income year Tom has two CGT events. He makes a $12,000 capital gain on shares he held for 3 years (eligible for the 50% discount). He also sells a rental property he held for 6 years for less than its reduced cost base, making a capital LOSS of $9,000. The 50% CGT discount applies only to capital gains, ... | $3,750 | $3,000 | $1,500 | -$3,000 | C | $1,500 | 1,500 | AUD | Capital loss is applied at its FULL value (losses are never discounted): loss = 9,000 → Subtract the loss from the gain before any discount: 12,000 - 9,000 = 3,000 → Apply the 50% CGT discount to the remaining eligible gain: 3,000 x 0.5 = 1,500 | {"$3,750": "Trap: wrongly discounted the capital loss by 50% before offsetting it", "$3,000": "Offset the loss but forgot to apply the 50% discount to the remaining gain", "$1,500": "Correct answer", "-$3,000": "Applied the discount to the gain before subtracting the loss (wrong order)"} | {"formula": "(share_gain - property_loss) * discount_rate", "params": {"share_gain": 12000, "property_loss": 9000, "discount_rate": 0.5}, "expected": 1500.0} |
Q082 | Division 7A & Company Tax | Over-franking tax on an over-franked distribution | Income tax (imputation) | 2017-18 | medium | ["ITAA 1997 s 203-50"] | https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/in-detail/how-to-calculate-over-franking-tax-and-under-franking-debit | Re Pty Ltd has a 30% corporate tax rate for imputation purposes (gross-up rate 2.33333) and a benchmark franking percentage of 50%. On 31 January 2018 it makes a frankable distribution of $12,500 franked to 70%, which exceeds its 50% benchmark, so it over-franks. The over-franking tax = frankable distribution x frankin... | $948.26 | $1,071.43 | $2,500.00 | $3,750.01 | B | $1,071.43 | 1,071.43 | AUD | Frankable distribution = 12,500; franked to 70%; benchmark = 50% → Franking percentage differential = 70% - 50% = 20% → Gross-up rate (30% rate) = 2.33333 → Over-franking tax = 12,500 x 20% / 2.33333 = 1,071.43 | {"$948.26": "Used the 27.5% gross-up rate (2.6364) instead of the 30% rate (2.33333)", "$1,071.43": "Correct answer", "$2,500.00": "Multiplied the distribution by the 20% differential but forgot to divide by the gross-up rate", "$3,750.01": "Used the full 70% franking percentage instead of the 20% excess over the 50% b... | {"formula": "distribution * franking_differential / gross_up_rate", "params": {"distribution": 12500, "franking_differential": 0.2, "gross_up_rate": 2.33333}, "expected": 1071.43} |
Q083 | Division 7A & Company Tax | Maximum franking credit on a distribution – 30% tax rate | Income tax (imputation) | 2019-20 | medium | ["ITAA 1997 s 202-60", "ITAA 1997 s 995-1"] | https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/paying-dividends-and-other-distributions/allocating-franking-credits | Ironbark Industries has a prior-year aggregated turnover over $50 million, so it is not a base rate entity and its corporate tax rate for imputation purposes for the 2019-20 income year is 30%. It wants to distribute $250,000 of profit to its shareholders. The maximum franking credit is the frankable distribution multi... | $94,826.28 | $75,000.00 | $583,325.00 | $107,144.39 | D | $107,144.39 | 107,144.39 | AUD | Corporate tax rate for imputation purposes = 30% (not a base rate entity) → Applicable gross-up rate = (100% - 30%) / 30% = 2.3333 → Maximum franking credit = 250,000 x (1 / 2.3333) = 107,144.39 | {"$94,826.28": "Used the 27.5% base-rate-entity gross-up rate (2.6364) instead of the 30% rate (2.3333)", "$75,000.00": "Multiplied the distribution by the 30% tax rate directly instead of dividing by the gross-up rate", "$583,325.00": "Multiplied by the gross-up rate instead of by its reciprocal (1 / gross-up rate)", ... | {"formula": "distribution * (1 / gross_up_rate)", "params": {"distribution": 250000, "gross_up_rate": 2.3333}, "expected": 107144.39} |
Q084 | Division 7A | Loan fully repaid before lodgment day – no deemed dividend | Income tax (Division 7A) | 2024-25 | hard | ["ITAA 1936 s 109D", "ITAA 1936 s 109N"] | https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/private-company-benefits-division-7a-dividends/in-detail/division-7a-loans | On 1 September 2024, Marlowe Pty Ltd, a private company, lends $40,000 to its shareholder Priya. Priya repays the entire $40,000 in full on 1 April 2025, which is before the company's lodgment day for the 2024-25 income year (the earlier of the due date for lodgment or the actual lodgment date). There is no written loa... | $43,508 | $0 | $40,000 | $3,508 | B | $0 | 0 | AUD | A private company loan is treated as a deemed dividend only if it is not fully repaid before the company's lodgment day for the year the loan is made → Priya repaid the full $40,000 on 1 April 2025, before the company's lodgment day → Because the loan was fully repaid before lodgment day, there is no deemed dividend: $... | {"$43,508": "Treated the loan plus a year of benchmark interest as the deemed dividend", "$0": "Correct answer", "$40,000": "Treated the whole $40,000 loan as a deemed dividend, ignoring that it was repaid before lodgment day", "$3,508": "Calculated notional interest at the benchmark rate as if an interest benefit aros... | {"formula": "0 * loan_amount", "params": {"loan_amount": 40000, "benchmark_rate": 0.0877}, "expected": 0.0} |
Q085 | Employment | Genuine redundancy – amount over the tax-free limit subject to the ETP cap | Income tax (employment termination) | 2023-24 | medium | ["ITAA 1997 s 83-170", "ITAA 1997 s 82-10", "ITAA 1997 s 83-175"] | https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/when-a-worker-leaves-your-business/taxation-of-termination-payments/redundancy-and-early-retirement | Darren receives a genuine redundancy payment in 2023-24. The genuine redundancy part of his payment is $205,000. His tax-free part is $95,901, based on his 14 years of service (2023-24 base amount $11,985 plus service amount $5,994 per completed year). The amount above the tax-free limit is part of his employment termi... | $95,901 | $109,099 | $121,084 | $187,021 | B | $109,099 | 109,099 | AUD | Tax-free limit = base + (service × years) = 11,985 + (5,994 × 14) = 95,901 → Amount in excess of the tax-free limit = genuine redundancy part − tax-free limit → = 205,000 − 95,901 = 109,099 (this ETP amount is taxed concessionally as it is under the ETP cap) | {"$95,901": "Reported the tax-free part itself instead of the amount in excess of it", "$109,099": "Correct answer", "$121,084": "Omitted the base amount from the tax-free limit before subtracting", "$187,021": "Subtracted only one year's service amount instead of 14 years when working out the tax-free limit"} | {"formula": "genuine_part - (base + service*years)", "params": {"genuine_part": 205000, "base": 11985, "service": 5994, "years": 14}, "expected": 109099.0} |
Q086 | Rental property | Renting out part of a property (room plus shared general areas) | Income tax (rental) | 2024-25 | medium | ["ITAA 1997 s 8-1", "IT 2167"] | https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses | Beverley rents out one room in her residence (floor area 25% of the residence) plus equal shared access to the general areas (kitchen, bathroom, laundry, floor area 55% of the residence) for the full 12 months at $300 per week. The annual mortgage interest, building insurance, rates and taxes for the whole property are... | $2,800 | $7,200 | $11,600 | $9,200 | B | $7,200 | 7,200 | AUD | Rent = 52 weeks x $300 = 15,600 → Room expenses = 16,000 x 25% = 4,000 → General-area expenses = 16,000 x 55% x 50% = 4,400 → Net rental income = 15,600 - 4,000 - 4,400 = 7,200 | {"$2,800": "Claimed 100% of the general-area expenses instead of John's 50% shared portion", "$7,200": "Correct answer", "$11,600": "Claimed only the room's 20% and ignored the shared general-area expenses entirely", "$9,200": "Applied the 50% shared factor to the room expenses as well as the general areas"} | {"formula": "weeks_rented * rent_per_week - (total_expenses * room_fraction + total_expenses * general_fraction * shared_use)", "params": {"weeks_rented": 52, "rent_per_week": 300, "total_expenses": 16000, "room_fraction": 0.25, "general_fraction": 0.55, "shared_use": 0.5}, "expected": 7200.0} |
Q087 | Study and training loans | Compulsory repayment – 2025-26 marginal 15c band vs old whole-of-income rate | Study and training support loan – compulsory repayment | 2025-26 | easy | ["Higher Education Support Act 2003 s 154-1", "Higher Education Support Act 2003 s 154-20"] | https://www.ato.gov.au/individuals-and-families/study-and-training-support-loans/study-and-training-loans-what-s-new | Harriet has a HELP debt and a repayment income of $96,000 in the 2025-26 income year. From 2025-26 the system is marginal: she pays 15% of her repayment income above $67,000. (Before the law change the repayment would have been 3.5% of her total $96,000 repayment income, i.e. $3,360.)
Under the 2025-26 marginal system... | $4,350 | $3,360 | $14,400 | $1,015 | A | $4,350 | 4,350 | AUD | Harriet's repayment income $96,000 is above $67,000 but below $125,000, so it stays within the same 15c marginal band as the base example → Income above the minimum threshold = 96,000 - 67,000 = 29,000 → Compulsory repayment = 29,000 x 15% = 4,350 → (Under the old whole-of-income system it would have been 3.5% x 96,000... | {"$4,350": "Correct answer", "$3,360": "Used the old pre-2025-26 system (3.5% of total repayment income = $3,360)", "$14,400": "Applied 15% to the whole repayment income instead of only the excess over $67,000", "$1,015": "Used the marginal base correctly but applied the old 3.5% rate to the excess"} | {"formula": "(repayment_income - threshold) * rate", "params": {"repayment_income": 96000, "threshold": 67000, "rate": 0.15, "old_rate": 0.035}, "expected": 4350.0} |
Q088 | Division 7A & Company Tax | Franking account closing balance (credits less debits) | Income tax (imputation) | 2013-14 | medium | ["ITAA 1997 s 205-15", "ITAA 1997 s 205-30"] | https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/imputation/paying-dividends-and-other-distributions/franking-account | Pinehurst Logistics Pty Ltd's franking account starts at $0. During the 2013-14 year it records franking credits for PAYG instalment payments of $120 (21 Jul 2013), $180 (21 Oct 2013), $240 (21 Jan 2014) and $160 (21 Apr 2014), and a $45 credit for a fully franked dividend received on 27 Jun 2014. It records franking d... | $595 | $895 | $50 | $95 | D | $95 | 95 | AUD | Total franking credits = 120 + 180 + 240 + 160 (PAYG instalments) + 45 (franked dividend received) = 745 → Total franking debits = 250 (tax refund) + 400 (franked distribution to members) = 650 → Closing balance = 745 - 650 = 95 (account in surplus, so no franking deficit tax) | {"$595": "Treated the $250 tax refund as a franking credit instead of a debit", "$895": "Treated the $400 distribution to members as a franking credit instead of a debit", "$50": "Omitted the $45 franking credit on the fully franked dividend received", "$95": "Correct answer"} | {"formula": "paygi1 + paygi2 + paygi3 + paygi4 + div_credit - refund_debit - dist_debit", "params": {"paygi1": 120, "paygi2": 180, "paygi3": 240, "paygi4": 160, "div_credit": 45, "refund_debit": 250, "dist_debit": 400}, "expected": 95.0} |
Q089 | CGT | 'Other' method – asset held less than 12 months (property) | Income tax (CGT) | 2023-24 | medium | ["ITAA 1997 s 104-10", "ITAA 1997 s 110-25", "ITAA 1997 s 115-25"] | https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-guide-2024/about-capital-gains-tax/how-to-work-out-your-capital-gain-or-capital-loss | Soraya bought a property for $333,000 under a contract dated 19 June 2023 (deposit $33,000, balance $300,000 on settlement 7 August 2023), paying $9,000 stamp duty and $3,000 solicitor's fees on purchase. She sold the property on 20 October 2023 for $420,000, incurring $2,000 solicitor's fees and $4,500 agent's commiss... | $37,500 | $75,000 | $34,250 | $68,500 | D | $68,500 | 68,500 | AUD | Cost base = 300,000 + 33,000 + 9,000 + 3,000 + 2,000 + 4,500 = 351,500 → Capital gain ('other' method) = 420,000 - 351,500 = 68,500 → Held less than 12 months, so neither the discount nor the indexation method is available | {"$37,500": "Omitted sale costs and also wrongly applied the discount", "$75,000": "Omitted the $5,500 of sale costs (solicitor + agent) from the cost base", "$34,250": "Wrongly applied the 50% CGT discount even though the asset was held less than 12 months", "$68,500": "Correct answer"} | {"formula": "proceeds - cost_base", "params": {"proceeds": 420000, "cost_base": 351500, "cost_base_excl_sale_costs": 345000, "discount_rate": 0.5}, "expected": 68500.0} |
Q090 | Rental property | Holiday home apportionment by period genuinely available for rent (net rental income) | Income tax (rental) | 2024-25 | medium | ["ITAA 1997 s 8-1", "IT 2167"] | https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses | Anjali and Theodore jointly own a holiday home. They rent it out for 5 weeks (15 December to 19 January) and reserve it for their own use the rest of the year. Their total expenses for the home were $46,950, of which $1,450 is the agent's commission and advertising for tenants (fully deductible). The remaining $45,500 ... | -$23,075.00 | -$27,450.00 | $14,985.58 | $13,675.00 | D | $13,675.00 | 13,675 | AUD | Apportion the general expenses to the 5 weeks rented: (5 / 52) x 45,500 = 4,375 → Add the fully deductible agent commission and advertising: 4,375 + 1,450 = 5,825 total deductions → Net rental income = rent 19,500 - deductions 5,825 = 13,675 | {"-$23,075.00": "Apportioned using the 48 private-use weeks instead of the 4 weeks rented", "-$27,450.00": "Deducted the full year of expenses instead of apportioning to the 4 weeks rented", "$14,985.58": "Apportioned the agent commission/advertising too, instead of claiming it in full", "$13,675.00": "Correct answer"} | {"formula": "rent_received - ((weeks_rented / weeks_in_year) * apportionable_expenses + agent_costs)", "params": {"rent_received": 19500, "apportionable_expenses": 45500, "weeks_rented": 5, "weeks_in_year": 52, "agent_costs": 1450}, "expected": 13675.0} |
Q091 | Individual income tax | Medicare levy surcharge - Tier 1 single | Medicare levy surcharge | 2025-26 | medium | ["A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999", "Medicare Levy Act 1986 s 8B"] | https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates | In 2025-26 Leon is 38, single with no dependants and has no appropriate private patient hospital cover. His taxable income is $85,000 and he declares total reportable fringe benefits of $23,000, so his income for MLS purposes is $108,000. For 2025-26 a single person with income for MLS purposes between $101,001 and $11... | $2,160 | $1,080 | $1,350 | $850 | B | $1,080 | 1,080 | AUD | Income for MLS purposes = 85,000 taxable income + 23,000 reportable fringe benefits = 108,000 → Kept income for MLS purposes within the 2025-26 single Tier 1 range ($101,001-$118,000), so the MLS rate is 1% → MLS = 108,000 x 0.01 = 1,080 | {"$2,160": "Confused the surcharge with the 2% Medicare levy rate", "$1,080": "Correct answer", "$1,350": "Used the Tier 2 rate of 1.25% instead of the correct Tier 1 rate of 1%", "$850": "Calculated the surcharge on taxable income only, ignoring the reportable fringe benefits"} | {"formula": "(taxable_income + reportable_fringe_benefits) * tier1_rate", "params": {"taxable_income": 85000, "reportable_fringe_benefits": 23000, "tier1_rate": 0.01, "tier2_rate": 0.0125, "medicare_levy_rate": 0.02}, "expected": 1080.0} |
Q092 | Rental property | Decline in value of a depreciating asset (diminishing value, part-year) | Income tax (rental) | 2024-25 | medium | ["ITAA 1997 s 40-25", "ITAA 1997 s 40-70", "ITAA 1997 s 40-72"] | https://www.ato.gov.au/forms-and-instructions/rental-properties-2025/rental-expenses | Priscilla and her sister Coralie bought a newly built rental property on 24 August 2024 as tenants in common (50% each). A professional report identifies a new oven as a depreciating asset, and Priscilla's interest in the oven has a cost (base value) of $1,800 with an effective life of 8 years. They held the asset for ... | $191.71 | $225.00 | $450.00 | $383.42 | D | $383.42 | 383.42 | AUD | Diminishing value rate = 200% / effective life = 200% / 8 = 25.00% → Apportion for days held: 311 / 365 → Decline in value = 1,800 x (311 / 365) x (2.00 / 8) = 383.42 | {"$191.71": "Used the prime cost rate (100%/life) instead of the diminishing value rate (200%/life)", "$225.00": "Halved the full-year diminishing value (confused the part-year with the low-value-pool half-rate) instead of apportioning by days", "$450.00": "Claimed a full year of decline in value without apportioning f... | {"formula": "base_value * (days_held / days_in_year) * (diminishing_rate_pct / effective_life)", "params": {"base_value": 1800, "days_held": 311, "days_in_year": 365, "diminishing_rate_pct": 2.0, "effective_life": 8}, "expected": 383.42} |
Q093 | GST | Maximum GST credit on a car above the car limit – 1/11 of the car limit | GST | 2025-26 | medium | ["GST Act s 69-10", "ITAA 1997 s 40-230"] | https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/motor-vehicle-and-transport/gst-and-motor-vehicles/purchasing-a-motor-vehicle | Nadia purchases a new non fuel-efficient car for $84,500 (including $7,200 GST and luxury car tax) on 12 July 2025 and plans to use it 100% in carrying on her business. The car limit for the 2025-26 financial year is $69,674. Because the car's price exceeds the car limit, the GST credit is capped at one eleventh of the... | $7,200.00 | $6,334.00 | $6,967.40 | $7,681.82 | B | $6,334.00 | 6,334 | AUD | The car's price ($84,500) exceeds the 2025-26 car limit of $69,674 → The maximum GST credit is capped at one eleventh of the car limit → Maximum GST credit = 69,674 / 11 = 6,334 | {"$7,200.00": "Claimed the full $7,200 GST shown on the invoice, ignoring the car limit cap", "$6,334.00": "Correct answer", "$6,967.40": "Took 10% of the car limit instead of 1/11", "$7,681.82": "Claimed 1/11 of the full car price instead of capping at 1/11 of the car limit"} | {"formula": "car_limit / 11", "params": {"car_price": 84500, "car_limit": 69674, "gst_in_price": 7200}, "expected": 6334.0} |
Q094 | Individual income tax | Medicare levy surcharge – private hospital cover removes the surcharge | Medicare levy surcharge | 2024-25 | medium | ["A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 s 15", "Private Health Insurance Act 2007 s 22-30"] | https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates | Priya is single with no dependants and her income for Medicare levy surcharge (MLS) purposes for 2024-25 is $130,000, which sits in the 2024-25 single Tier 2 band ($113,001 - $151,000, rate 1.25%). However, Priya held an appropriate level of private patient HOSPITAL cover for the entire income year. The MLS only applie... | $1,625 | $0 | $1,300 | $2,600 | B | $0 | 0 | AUD | MLS is only payable for days WITHOUT appropriate private patient hospital cover. → Priya held appropriate hospital cover for the full 2024-25 year. → Therefore the surcharge is $0, even though her $130,000 income would otherwise be in the Tier 2 (1.25%) band. | {"$1,625": "Charged the Tier 2 surcharge (1.25%) on the income, ignoring that full-year hospital cover exempts the surcharge", "$0": "Correct answer", "$1,300": "Charged a Tier 1 (1%) surcharge despite the hospital cover and the Tier 2 income level", "$2,600": "Confused the surcharge with the 2% Medicare levy and charg... | {"formula": "income_for_mls * 0", "params": {"income_for_mls": 130000, "tier2_rate": 0.0125, "tier1_rate": 0.01, "medicare_levy_rate": 0.02}, "expected": 0.0} |
Q095 | Depreciation | Low-value pool – decline in value (18.75% in year added + 37.5% on prior balance) | Income tax (capital allowances, Div 40 low-value pool) | 2019-20 | medium | ["ITAA 1997 s 40-440", "ITAA 1997 s 40-425"] | https://www.ato.gov.au/forms-and-instructions/depreciating-assets-guide-2020/low-value-pools | During 2019-20, Priya bought a scanner for $910 (a low-cost asset). She estimated 80% taxable use, so she allocated 80% of the cost, that is $728, to her low-value pool. At the end of 2018-19 her low-value pool had a closing balance of $8,000. In 2019-20 she allocated no other low-cost or low-value assets to the pool. ... | $3,273.00 | $1,636.50 | $1,773.00 | $3,136.50 | D | $3,136.50 | 3,136.5 | AUD | 18.75% of the taxable-use cost of the scanner added this year: 18.75% x 728 = 136.50 → plus 37.5% of the prior-year closing pool balance: 37.5% x 8,000 = 3,000 → Total decline in value = 136.50 + 3,000 = 3,136.50, rounded to 3,137 | {"$3,273.00": "Used the full 37.5% rate on the newly added asset instead of the half rate (18.75%)", "$1,636.50": "Applied the half rate (18.75%) to the whole pool including the prior balance", "$1,773.00": "Swapped the rates - applied 37.5% to the new asset and 18.75% to the prior pool balance", "$3,136.50": "Correct ... | {"formula": "new_cost_taxable * add_rate + prior_closing * pool_rate", "params": {"new_cost_taxable": 728, "prior_closing": 8000, "add_rate": 0.1875, "pool_rate": 0.375}, "expected": 3136.5} |
End of preview. Expand in Data Studio
TaxBench-AU
A benchmark for testing whether AI agents can calculate Australian tax.
TaxBench-AU contains 156 Australian tax calculation questions, presented as multiple-choice (4-option) worked tax problems. The benchmark is designed to test whether an AI agent can read the facts, apply the right Australian tax rule for the relevant income year, do the calculation, and choose the correct answer.
The Kaggle mirror is published as Agent Tax Exam for Australian Tax.
Paper: PAPER.pdf
Hugging Face dataset: https://huggingface.co/datasets/Pn101/taxbench-au
Kaggle mirror: https://www.kaggle.com/datasets/poonam101test/australian-tax-mcq-benchmark
What is in the benchmark
The dataset contains 156 tax cases, grounded in current legislation and Australian Taxation Office (ATO) guidance.
The questions cover:
- capital gains tax
- rental property
- depreciation
- fringe benefits tax
- individual income tax and offsets
- superannuation
- Division 7A and franking
- GST
- study and training loans
- income tests
- employment and termination payments
The questions range from simple one-step calculations to multi-step scenarios where the model has to keep track of several facts at once.
Each question includes four answer options, A to D. Correct answer positions are balanced across the dataset:
| Answer position | Count |
|---|---|
| A | 39 |
| B | 39 |
| C | 39 |
| D | 39 |
This prevents a model from benefiting from answer-position bias.
The benchmark is split into two groups:
| Group | Items | Description |
|---|---|---|
| Traditional cases | 116 | Based on real ATO worked examples, with new public names and numbers. |
| Edge cases | 40 | Boundary, trap, nil outcome, loss, and multi-step reasoning cases. |
All 156 public questions are synthetic. The original ATO worked examples are held out.
Files
| File | Contents |
|---|---|
data/question.csv |
The questions only: id, topic, year_of_income, the question with A-D options, and choice_A-choice_D. No answers or source links, so the agent cannot peek. |
data/answer.csv |
The answer key: correct option, correct value, worked explanation, verifier, legal references, and source URL. |
data/exam.csv |
Everything in one file: questions, options, answers, explanations, verifiers, and metadata. |
verifier.py |
A small calculator and grading script. |
paper/PAPER.pdf |
Short paper describing the benchmark and evaluation setup. |
All three CSV files join on the id column.
Quick start
from datasets import load_dataset
# Full benchmark with questions, answers, explanations, and metadata.
exam = load_dataset("Pn101/taxbench-au", "exam", split="test")
print(exam[0])
# Questions only for closed-book evaluation.
questions = load_dataset("Pn101/taxbench-au", "question", split="test")
print(questions[0]["question"])
# Answer key for grading.
answers = load_dataset("Pn101/taxbench-au", "answer", split="test")
print(answers[0]["answer_label"])
How to get your agent to take the test
- Feed your agent each row of
data/question.csv. Thequestioncolumn is self-contained: it includes the scenario and A-D options. - Ask the agent to return a letter (
A,B,C, orD) or a numeric answer. - Save the responses as a CSV with two columns:
id,answer. - Grade the submission:
python verifier.py grade my_answers.csv
The verifier prints overall accuracy plus a breakdown by topic.
Give your agent the calculator as a tool
Programmatic checking is the most reliable way to keep tax math accurate, so you can let the agent use the verifier as a calculator while it solves:
python verifier.py calc "(880000 - 615000) * 0.5"
python verifier.py verify --id Q001
The same python_verifier field is stored on every case in data/answer.csv and data/exam.csv, so every answer can be recomputed from a formula and named inputs.
For closed-book evaluation, block web access and tax-database retrieval. Otherwise, you are testing retrieval, not internalised tax knowledge. Retrieval can be a valid thing to test, but it should be measured separately.
What to measure
Overall accuracy is useful, but a good evaluation should also measure:
- Per-topic accuracy: group results by tax area. A model may perform well on CGT but poorly on GST, FBT, or Division 7A.
- Edge-case accuracy: score the 40 edge cases separately. This shows whether the model handles traps and boundaries, not just standard examples.
- Robustness: paraphrase questions or make small wording changes. Accuracy should stay stable if the model understands the underlying rule.
- Error patterns: use the labelled wrong options to identify common failure modes: missed thresholds, unavailable discounts, wrong income years, or skipped steps.
These measures make the benchmark more useful than a single score. They show where an agent is reliable and where it needs more work.
What this benchmark does not claim
This benchmark is a test tool, not tax or financial advice.
It is not endorsed by the ATO. All figures should be verified before anyone relies on them in real work.
The benchmark is tied to income years. Australian tax rates, thresholds, and rules can change. An answer that is correct for one income year may be wrong for another.
The questions are derived rather than verbatim. The dataset changes names and numbers, and the answer key cites the governing rule rather than relying on the original wording of the ATO example.
Licence
- Benchmark items, documentation, and metadata: CC BY 4.0.
- Verifier script and supporting code: MIT.
- ATO source materials referenced by URL are © Australian Taxation Office for the Commonwealth of Australia and remain subject to the ATO's published copyright terms. See NOTICE.
This project is not affiliated with, endorsed by, or sponsored by the Australian Taxation Office, the Commonwealth of Australia, or the Tax Practitioners Board.
Citation
@misc{nair2026taxbenchau,
title = {TaxBench-AU: A benchmark for testing whether AI agents can calculate Australian tax},
author = {Nair, Poonam},
year = {2026},
note = {Dataset and paper}
}
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