Task 1 - Theory

1. Fringe Benefits Tax instalments are payable by employers who had an FBT liability over what amount in the previous year?

2. Who can claim Fuel Tax Credits?

3. Jerry has a landscaping business and uses unleaded petrol in his ute and various gardening equipment. For the quarter ended 31st March he used a total of 273 litres, 182 litres in the ute and the rest in the equipment. How much fuel tax credit can Jerry claim for the March quarter?

4. Petro’s Pastoral Company Ltd runs a dairy farm. It operated a tractor and 4WD vehicle which are used only on the property, both of which use diesel fuel. For the March quarter 816 litres of diesel was used, 267 litres in the tractor and the rest in the 4WD. How much fuel tax credit can Petro’s Pastoral Company claim for the March quarter?

5. When is Wine Equalisation Tax paid in Australia and by whom?

6. Valley Vineyards is a wine producer who is registered for GST. They sell bottled wine to The Local Bottle Shop Ltd, a retailer who sells direct to the public. Valley Vineyards is preparing an invoice for $1650.00 worth of wine. 

a) Who will collect WET and pay it too the ATO?

b) Calculate how much WET and GST should be charged on this sale.

7. When is Luxury Car Tax (LCT) payable?

8. Monty’s Motor Sales is a car dealer who sells new cars. Monty sells a vehicle with a new price of $79,500 including GST.

a) Calculate the LCT to be charged

b) Calculate the GST to be charged

c) Calculate the total selling price of the vehicle

d) If the buyer is registered for GST and uses the vehicle 100% for business purposes what input tax credit will they be able to claim? Explain your answer.

9. For an entity with a turnover of less than $20 million:

a) On what dates are Business Activity Statements (BAS) due to be lodged and paid?

b) What penalties could apply if a BAS or IAS is lodged after the due date?