Tax for Financial Advising

The subject explains how financial adviser applies an understanding of the key aspects of taxation to assists clients to secure a financial future for themselves, their dependents, and their families.

In this subject, individuals are introduced to the Australian taxation system, and the ways rules and regulations might affect a client’s strategies and investments. It explores how different types of income can attract different taxation treatment and provides specific attention to capital gains and superannuation.

This subject complies with the Corporations (Relevant Providers — Education and Training Standards) Determination 2021, division 3, section 3-70 Specified course: taxation law.

Learning Outcomes:

On successful completion of TFA Tax for Financial Advising, individuals should be able to:

• Describe the fundamentals of the taxation system within Australia, including the basics of the income tax system for individuals, non-residents, minors, partnerships, companies and trusts, and the Medicare Scheme
• Explain the rules relating to goods and services tax, fringe benefits tax and capital gains tax, including capital gains concessions available to small businesses
• Define a tax deduction and tax offset, describing the different deductions and offsets available and eligibility criteria
• Explain the taxation rules applying to superannuation benefits, employment termination payments and life insurance policies
• Identify the role of the financial adviser in taxation planning and describe common strategies employed
• Identify how the Privacy Act applies to professionals operating in the taxation planning area
• Demonstrate an understanding of the superannuation industry in Australia in relation to retirement planning and the tax implications
• Explain the various options and tax implications available for using superannuation benefits
• List the advantages and disadvantages of self-managed superannuation funds
• Explain the importance of a trust deed and determine the most appropriate trustee structures for a fund
   

Topics:

• Topic 1:   Introduction to taxation
• Topic 2:   Features for the Australian taxation system
• Topic 3:   Essential taxation and superannuation principles
• Topic 4:   Capital gains tax
• Topic 5:   Deductions, offsets and cash flow