BULAW5916-Taxation Law and Practice

Topic

The Commonwealth Government regularly reviews issues of federation, and taxation reform. There have been discussions concerning the need for States (incudes states and territories) to obtain or generate more revenue in order to meet their growing expenses.

Required

Complete the tasks in Part A , Part B  and Part C

Part A

Select one of the State imposed taxes and describe how it currently operates. 

Note: This can be a tax imposed by any State government in Australia.

Evaluate the State tax you have selected in terms of its function as a tax; and whether it exhibits the features (characteristics) of a good tax system. 

Hints:

1.Identify and discuss the meaning of ‘functions of taxation’.

2.Identify and discuss features or characteristics of a good tax system.

3.Limit your discussion to your selected State imposed taxation.

Part B

Propose a way of reforming your selected State tax to enable it to better meet the functions of taxation, while exhibiting the same or more features of a good tax system. 

Hints:

1.Limit your discussion to State imposed taxation.

2.You cannot suggest that States may pass on responsibility for funding certain areas (eg Hospitals) to the Commonwealth. 

Part C

Jon owns a two storey building. There is a shop on the ground floor and Jon lives on the first floor.  Jon sells the building and seeks your advice as to how the sale would be treated for GST purposes. Advise Jon.