1.	Give two economic trends currently released by the Australian Bureau of Statistics that relates to the construction industry. Economic trend indicates the current direction by which indicators of the economy generally tend to incline. ?

i.

ii.

2.	Provide two building and construction industry trends. Industry trend pertains to the current business patterns that occur in a specific industry.?

i.

ii.

10.	Access and review the Australian Consumer Law and answer the following questions.?

i.	Under the ACL, what classification do builders fall under?
ii.	Give three guarantees relevant to builders in relation to the supply of services they provide to consumers. ?
iii.	Give three guarantees that builders under the ACL must provide in relation to goods they provide to consumers. ?
iv.	Identify one example of unfair contract terms found in Part 2-3 of the Australian Consumer Law. ?

11.	Access and review the Competition and Consumer Act 2010 and answer the following questions. ?

i. Identify the object of the Competition and Consumer Act 2010.?

ii. As per the Competition and Consumer Act 2010, all businesses, including businesses engaged in the construction industry, are prohibited from entering into agreements that relates to cartel provisions. Identify one example of a cartel provision as provided in Section 45AA of the Competition and Consumer Act 2010. ?

iii. Based on the provisions of the Competition and Consumer Act 2010, what could be the initial consequence of an alleged contravention of a civil penalty provision of industry codes (e.g. National Construction Code)?

12.	Answer the following questions relating to the income tax obligations of a building and construction business to Australian Taxation Office (ATO). ?

i. Define income tax. ?

ii. A building and construction business will have to assess whether it has Personal

Services Income to report in its income tax return. Define Personal Services Income.?

iii. What is the tax report required to be lodged with Australian Taxation Office (ATO) specifically by businesses who employ building and construction services of a contractor?

iv. A business is considered as primarily operating in building and construction industry for tax purposes if it has satisfied at least one of the conditions set out in Sub regulation 64(5) of Taxation Administration Amendment Regulation 2012 (No.1). Identify one of these conditions.?

v. There are certain activities that are considered for tax purposes as building and constructions services when performed on or in relation to any part of a building, structure, works, surface or sub-surface. Identify one example of these activities. ?

13.	Answer the following questions about the capital gains tax obligations of a building and construction business to Australian Taxation Office (ATO).?

i. Define Capital Gains Tax (CGT). ?

ii. Give one example of an asset that is generally not considered as a CGT asset. ?

iii. What is a CGT event?

iv. Give one type of CGT event classified under Category C. ?

v. Identify what legislation contains the provisions on Capital Gains Tax. ?

14.	Answer the following questions about the payroll tax obligations of a building and construction business based on your state/territory's payroll tax laws. ?

i. Define payroll tax. ?

ii. Where can you find the contractor provisions in the payroll tax law relevant in your state or territory?

iii. Under your state/territory's payroll tax law, what is the threshold that you must exceed for you to be required to register for payroll tax?

15.	Answer the following questions about the Fringe Benefits Tax (FBT) obligations of a building and construction business to the Australian Taxation Office (ATO).?

i. Define fringe benefits. ?

ii. Identify one type of fringe benefit. ?

iii. Who shoulders the burden of Fringe Benefits Tax?

iv. Identify one legislation that governs the assessment and collection of Fringe Benefits Tax. ?

v. Who are required to register for Fringe Benefits Tax?

vi. What tax return do you have to lodge with the ATO when you have an FBT liability to report?

vii. Why do you have to differentiate between a contractor and an employee for fringe benefits tax purposes?

16.	Answer the following questions about pay as you go (PAYG) instalments. ?

i. Describe the PAYG instalments system. ?

ii. Identify the legislation that governs the administration of PAYG instalments system.?

iii. Identify one reason why a company would be required to pay by instalments. ?

17.	Answer the following questions about Goods and Services Tax (GST). ?

i. What is GST?
ii. Who bears the burden of GST?
iii. Identify the legislation that governs Goods and Services Tax. ?
iv. When will a business be required to register for GST?
v. What report do you need to lodge with Australian Taxation Office (ATO) in relation to your GST obligations?
vi. Why do you have to differentiate a contractor from an employee for GST purposes?
18.	Identify two tax differences between a sole trader and a company ?

i.

ii.

19.	Answer the following questions about registering for taxes. ?

i. Give one reason why a business would need to register for a tax file number (TFN). ?

ii. There are different tax registrations, other than TFN registration, that a building and construction business would have to consider. Provide one example of these other tax registrations. ?

iii. Identify one way of how you can register for GST.?

iv. What do you need to register for before you can register for GST?

v. Identify the number of penalty units imposed for failing to meet your obligation to register for GST. ?

vi. What should you register for before making a payment subject to withholding tax?

vii. What tax registration should you complete before registering for Fuel Tax Credit?

viii. Why would a business want to register for Fuel Tax Credit?

20.	Listed below are two methods for paying taxes in Australia. For each method: Identify the requirements you need to have in order to complete the related payment transactions Identify one advantage of choosing each iii. Identify one disadvantage of choosing each?

Requirement	Payment Methods
Debit Card	In Person at Australia Post
i. Payment Requirements
ii. Advantage
iii. Disadvantage

21.	Answer the following questions about maintaining business and taxation records. ?

i. List three reasons why it is important to keep business records for taxation purposes. ?

ii. As per taxation laws, how long do you need to keep business and taxation records?

iii. As per the Corporations Act 2001, how long do companies have to keep their financial records?

iv. According to the Fair Work Act, how long should an entity keep its employee records?

v. Identify one of the five rules of record keeping enumerated by ATO. ?

vi. What would be the penalty for failing to meet your record-keeping obligations to ATO?

vii. Give one example of a record that must be kept by a business engaging with a contractor or a supplier. ?

22.	Identify the two most common types of invoices and determine what types of businesses can issue the respective invoices. ?

Type of Invoice	The type of business who can issue the invoice
i.
ii.

23.	List the seven details that you have to include in a tax invoice. ?

i.

ii.

iii.

iv.

v.

vi.

vii.

24.	Identify five different ways of how a business can send invoices to its clients. ?

i.

ii.

iii.

iv.

v.

25.	Answer the following questions about invoicing. ?

i. What should the project manager do when issuing the invoice to the client?

ii. What happens if there is a delay in the process of invoicing?

iii. How do you record the invoicing of progress payments in the accounting system?

26.	Explain how collection of payments is recorded in the accounting system of a business. ?

27.	Answer the following questions about budgeting ?

i.	Why is it important to prepare a budget?
ii.	What is a Project Budget?
iii.	Most businesses have established code of accounts in their accounting system. What is the relevance of these codes of account in budgeting?

28.	Explain the use of the listed types of financial reports in managing business finances. ?

Financial Report	Use in Managing Business Finances
Profit or Loss Statement
Statement of Cash Flows

29. Identify two essential tasks that a business must accomplish by the end of the financial year. ?

i.

ii.

30.	Identify one advantage and one disadvantage of employing the following payment methods in a building and construction business. ?

Payment Method	Advantage	Disadvantage
Credit Card
Debit Card
Direct Debit
Cheques
Cash

31.	Answer the following questions about financial health. ?

i.	What does financial health of business mean?
ii.	Identify one example of a ratio that most businesses will have to analyse when performing a financial health check. ?

32.	Listed below are two examples of sale calculations. For each sale calculation: i. Provide its definition ii. Provide the related formula iii. Determine how the result of the calculation is analysed ?

Requirement	Break-even Point (BEP) in Dollars	Gross Profit Margin
Definition
Formula
Analysis

\f(gs. J \\Iim I |\\\\llll ll 33. Listed below are six different financial ratios. For each financial ratio: i. Identify what type of financial ratio it is ii. Explain what is being measured by the ratio iii. Explain how the ratio is computed iv. Explain how the ratio should be evaluated Ratio Type of ratio What is being measured by this How this ratio is computed How this ratio should be ratio (formula) evaluated Gross Profit Ratio Return on Equity (ROE)