HI6028 Taxation Theory, Practice and Law Individual Assignment T2 2026: Complete Guide, Answer Hints & Expert Help

HI6028 Taxation Theory, Practice and Law – Individual Assignment T2 2026 (Complete Guide)

The HI6028 Individual Assignment for T2 2026 at Holmes Institute is worth 40% of your final grade, capped at 1,000 words, and must be submitted on Blackboard in Microsoft Word with a completed Assignment Cover Page. It contains three questions worth 40 marks in total: Question 1 (20 marks) on income tax treatment and a full individual tax calculation for a sole trader, Question 2 (10 marks) on fringe benefits tax for a company, and Question 3 (10 marks) on tax residency and foreign income. This guide breaks down every part of the brief, shows you how to structure each answer, gives you calculation methods, answer hints, and the resources you need.

HI6028 T2 2026 At a Glance

The Three Questions Explained

Question 1 (20 marks): Sarah Nguyen – Harbourline Pet Supplies

Your client Sarah Nguyen is an Australian resident sole trader running Harbourline Pet Supplies, a pet supplies store in Perth that commenced trading on 1 August 2025. She has an ABN, a registered business name and is GST registered — but the brief tells you to ignore all GST consequences, so do not waste words on GST. She also has investment income in her own name and works part-time as an employee.

Part A (10 marks) – Tax treatment of receipts and payments

You must classify each receipt as assessable income, exempt income, non-assessable non-exempt (NANE) income, or not assessable, and each payment as fully deductible, partially deductible (showing apportionment), or not deductible. You must briefly justify anything exempt, non-deductible or partly deductible, with reference to statutory provisions and common law. You are not asked to calculate total taxable income in Part A, but you must clearly show the net business profit or loss for Harbourline Pet Supplies.

The receipts to classify: $287,600 sales; $5,400 interest on a term deposit held jointly with her spouse (she is beneficially entitled to 50%); $46,800 gross rent from a Fremantle investment unit; $2,150 ATO refund for the 2024–25 assessment with no interest element; $18,900 cash prize from a television game show; $22,000 PhD scholarship from Curtin University that the university confirms is fully exempt; $8,400 fully franked dividend from Ridgeline Ltd with a $3,600 franking credit; and a $10,500 net capital gain on listed shares.

The payments to classify: $98,000 shop rent; $6,400 outgoings and strata fees; $172,000 staff wages; $58,000 for an electric delivery van used 60% business and 40% private (the brief instructs you to assume the Commissioner allows a deduction equal to 25% of cost, apportioned for business use only); $22,800 employee superannuation paid on time to complying funds; $2,800 accounting and tax agent fees (treat as a business expense for simplicity); $2,100 of daily home-to-shop travel in her own car; and $2,900 of non-capital repairs on the investment unit.

Part B (10 marks) – Calculating the 2025–26 tax liability

Additional facts: gross part-time salary of $98,450 as a marketing coordinator (PAYG withholding is handled separately and must not be deducted as an expense); no private hospital cover at any time in the year; Australian resident for the full year; an outstanding HELP debt of $22,000; $2,600 of self-education expenses for a recognised marketing management course that enhances her current employment skills; employer super of 11.5% of salary under the superannuation guarantee (not salary sacrifice, not assessable to her); and no dependants or other offsets.

The brief dictates the exact order of presentation, so use these as your sub-headings:

1. Taxable income calculation — total assessable income (business profit/loss, salary, interest share, rent, dividend grossed up, net capital gain) less all allowable deductions including self-education.
2. Income tax on taxable income — apply resident marginal rates, shown in bracket form.
3. Medicare levy — at the appropriate rate, considering low-income thresholds.
4. Medicare levy surcharge — determine liability given her income and lack of private hospital cover, and apply the correct rate.
5. HELP compulsory repayment — using the relevant thresholds and percentages, based on repayment income.
6. Total tax liability — income tax + Medicare levy + surcharge + HELP repayment.
7. Net tax payable / refund — deduct PAYG withheld of $24,800 and the franking credit, then state clearly whether Sarah has tax payable or a refund, and the final dollar amount.

Question 2 (10 marks): Alpine Gear Pty Ltd – Fringe Benefits Tax

Alpine Gear Pty Ltd is a ski equipment retailer operating around Wangaratta, Victoria. You must calculate the taxable value and the grossed-up FBT taxable amount of each benefit, plus the total FBT taxable amount for the FBT year ended 31 March 2026.

(a) Car fringe benefit (5 marks). On 1 August 2025 Alpine Gear provided employee Jordan with a car purchased that day for $38,500 including GST plus $2,500 including GST dealer delivery charges. From 1 August 2025 to 31 March 2026 Jordan travelled 9,000 km and incurred $650 of minor repairs reimbursed by Alpine Gear. The car was not used for 8 days while Jordan was interstate, with the car parked at the airport and the key still with Jordan, and a further 12 days when scheduled for annual repairs.

(b) Loan fringe benefit (2.5 marks). On 1 October 2025 Jordan received a $20,000 loan at 2% p.a., balance unchanged for the rest of the FBT year. The statutory benchmark rate for the FBT year ended 31 March 2026 is 8.62% p.a. Jordan used 40% to buy income-producing shares and 60% for private purposes.

(c) International airline ticket (2.5 marks). In February 2026 Alpine Gear bought Jordan a return international economy airfare to Bali costing $2,200. Jordan spent 5 days at a ski-equipment supplier trade show and 5 days on personal holiday. Alpine Gear did not require attendance but covered the full cost as part of her employment package, and Jordan contributed nothing.

Question 3 (10 marks): Elena Takamura – Residency and Foreign Income

Elena Takamura was born in Osaka to a Japanese father and Australian mother and moved to Australia as a young adult. She signed her employment contract with a Melbourne-headquartered engineering firm, which still pays her Australian salary. For the income year she was seconded for eight months on rotation between an offshore gas platform in the Timor Sea and an onshore project site in Kazakhstan, staying in employer-arranged short-term apartments, work camps and hotels rather than one fixed residence.

Her husband and 15-year-old daughter live in a Fremantle home owned outright and occupied for eight years; the daughter attends school there. Her salary is paid into a joint Bankwest account used for household expenses, school fees and home outgoings. She returns to Fremantle for roughly four months of rotation breaks and the Christmas/New Year period. She also holds Japanese-listed shares paying dividends, a Japanese term deposit paying interest, and a tenanted Osaka apartment, all of which have borne Japanese withholding and income tax.

You must determine her residency and the most relevant tests, discuss whether her overseas accommodation is a permanent place of abode outside Australia under the domicile test with reference to case law, explain how her salary is taxed including any statutory exemption for foreign employment income, explain the treatment of her Japanese dividend, interest and rental income, and state the relevance of foreign tax credits, foreign income tax offsets or treaty relief — citing ITAA 1936, ITAA 1997 and ATO guidance.

Answer Hints: How to Approach Each Item

These hints show you the reasoning framework markers expect. They are study guidance, not model answers — you must verify every figure against current ATO rates and write the analysis in your own words with proper citations.

Question 1 Part A – Receipt-by-receipt thinking

• Sales ($287,600): ordinary income from carrying on a business under s 6-5 ITAA 1997. Fully assessable.
• Joint interest ($5,400): interest is ordinary income, but include only the share Sarah is beneficially entitled to. The brief says 50%, so only half enters her return.
• Gross rent ($46,800): ordinary income from property, assessable in full, with the related unit expenses deductible separately.
• ATO refund ($2,150): a refund of tax previously paid is not income — there is no gain, and the brief confirms no interest element. Explain why a refund is a return of capital rather than a receipt of income.
• Game show prize ($18,900): the classic windfall question. A prize from a game of chance, unconnected to any income-earning activity or business, is generally not ordinary income. Contrast prizes connected to a taxpayer’s income-producing activity, which can be assessable. Cite authority.
• Scholarship ($22,000): the brief states the university confirmed it is fully exempt — classify it as exempt income, and note briefly the exemption for full-time students' scholarships and why exempt income still matters (it can affect loss rules).
• Franked dividend ($8,400 + $3,600 credit): the trap most students miss. You must gross up: include $8,400 plus the $3,600 franking credit as assessable, then claim the $3,600 as a tax offset in Part B. Do not simply include $8,400.
• Net capital gain ($10,500): a net capital gain is statutory income under s 102-5 and is added to assessable income. The brief says current-year losses are already applied and there are no prior-year losses, so take $10,500 as given.

Question 1 Part A – Payment-by-payment thinking

• Shop rent ($98,000), outgoings ($6,400), wages ($172,000), employee super ($22,800): all standard business outgoings incurred in gaining assessable income under s 8-1, fully deductible. Note that super is deductible because it was paid on time to complying funds.
• Delivery van ($58,000): follow the brief’s instruction exactly — a deduction of 25% of cost, apportioned for business use only. That is 25% of $58,000, then 60% of the result. Show the arithmetic. The 40% private portion is denied as private in nature.
• Tax agent fees ($2,800): deductible for managing tax affairs; the brief tells you to treat it as a business expense for simplicity, so follow that instruction rather than arguing.
• Home-to-shop travel ($2,100): the classic non-deductible item. Ordinary home-to-work travel is private in nature — cite the well-established principle that travel puts you in a position to earn rather than being incurred in earning. Not deductible.
• Investment unit repairs ($2,900): deductible against rental income under the repairs provision because the brief states none of the work is capital. It is not a business expense of the shop, so keep it out of your net business profit figure.

Net business profit: include only the Harbourline items — sales less shop rent, outgoings, wages, the apportioned van deduction, employee super and tax agent fees. Keep rent, interest, dividends, the capital gain and the unit repairs out of the business figure; they belong in Part B’s overall taxable income.

Question 2 – FBT approach

• Car benefit: decide between the statutory formula method and the operating cost method, and state why. The base value includes GST and dealer delivery charges. Count the days available for private use, not days driven — and note the deliberate trap: the 8 days at the airport with the key in Jordan’s possession generally remain available, while the 12 days for scheduled repairs are typically excluded. Argue your position and show days.
• Loan benefit: taxable value is the difference between the benchmark rate (8.62%) and the rate charged (2%) on $20,000, for the part-year from 1 October 2025 to 31 March 2026. Then apply the otherwise deductible rule to the 40% used for income-producing shares, which reduces the taxable value; the 60% private portion remains taxable.
• Airfare: an expense payment or residual benefit. Consider apportionment between the 5 work days and 5 private days, and note the significance of the employer not requiring attendance and Jordan contributing nothing. Explain whether the otherwise deductible rule can reduce the value.
• Gross-up: identify whether each benefit is type 1 (GST credit entitlement, higher gross-up) or type 2 (lower gross-up), then apply the correct factor. Mixing these up is the most common error in this question.

Question 3 – Residency approach

• Work through the residency tests in order and say which are most relevant: the ordinary concepts (resides) test and the domicile and permanent place of abode test are the two that matter here; mention the 183-day and superannuation tests briefly and explain why they are less decisive.
• For permanent place of abode, the key facts are that she has no single fixed overseas residence — rotating apartments, camps and hotels — while retaining a family home, family, school-aged child and joint bank account in Fremantle. Contrast the leading authorities on abandoning an Australian domicile and establishing a permanent abode abroad.
• If she is a resident, she is taxed on worldwide income, so her salary is assessable in Australia. Examine whether the statutory exemption for foreign employment income could apply and explain why it is narrow.
• Japanese dividends, interest and rent are foreign-sourced income assessable to an Australian resident. Discuss the foreign income tax offset for Japanese tax already paid, and the role of the Australia–Japan tax treaty in allocating taxing rights and limiting withholding.

Five Ways to Calculate the Tax (and When to Use Each)

1. The bracket-by-bracket method (for Part B income tax). Lay out each resident marginal bracket, apply the rate to the slice of income falling inside it, then total. Present it as a table — markers can follow it instantly and award method marks even if one figure slips.
2. The gross-up-then-offset method (for franked dividends). Add cash dividend plus franking credit to assessable income, calculate tax on the full taxable income, then subtract the franking credit as a refundable offset at the end. Never net it off early.
3. The statutory formula method (for the car fringe benefit). Base value × statutory rate × (days available ÷ days in FBT year), less employee contributions. Use it when operating cost records are incomplete — which is usually the case in exam scenarios.
4. The operating cost method (the alternative for cars). Total operating costs × private use percentage, less contributions. Calculate both where time permits and state which gives the lower taxable value, since employers may choose.
5. The apportionment method (for every mixed-use item). Business or income-producing percentage × total cost. This is the engine behind the van (60%), the loan (40% otherwise deductible) and the airfare (5 of 10 days). Always show the fraction and the resulting dollar figure on separate lines.

Ten Tips for Writing the HI6028 Assignment

1. Respect the 1,000-word limit. With 40 marks across three questions, you have roughly 25 words per mark. Use tables for classifications and calculations — they communicate more per word than prose and keep you under the cap.
2. Follow the brief’s prescribed order in Part B. The seven steps are listed for a reason; deviating makes the marker hunt for your figures.
3. Show the formula, the substitution and the answer. Method marks survive an arithmetic slip; a bare number does not.
4. Cite sections, not vibes. Reference specific provisions of ITAA 1936 and ITAA 1997, relevant case law and ATO rulings for each conclusion, especially for the game show prize, the home-to-work travel and the residency analysis.
5. Do not discuss GST in Question 1. The brief explicitly says to ignore it. Words spent there are marks lost elsewhere.
6. Use current-year rates. Use the 2025–26 resident rates, Medicare levy and surcharge thresholds, and HELP repayment thresholds — not figures from an older trimester’s notes.
7. State conclusions explicitly. End Part B with a clear sentence naming payable or refundable and the dollar amount. End Question 3 with a clear residency conclusion.
8. Justify only what the brief asks you to justify. Part A asks for brief justification of exempt, non-deductible and partially deductible items — do not write paragraphs on the obvious ones.
9. Use the Holmes Adapted Harvard format properly. In-text citations need author, year, page and paragraph, and each reference needs a working hyperlink. Incorrect referencing costs 20%.
10. Submit early, in Word, from your own connection. A VPN costs 50% and an overseas IP is reported as misconduct — see the penalty table below.

Five Useful Resources to Complete This Assignment

1. ATO individual income tax rates (ato.gov.au). The authoritative source for 2025–26 resident marginal rates, the Medicare levy and low-income thresholds, and the Medicare levy surcharge tiers. Use this for every figure in Part B rather than a textbook table that may be a year out of date.
2. ATO study and training loan repayment thresholds. HELP repayment rates and thresholds change annually and are based on repayment income, not taxable income — a distinction that decides marks in Part B step 5.
3. ATO Fringe Benefits Tax guide for employers. Covers the statutory formula and operating cost methods, the type 1 and type 2 gross-up rates, the otherwise deductible rule, and what counts as a day available for private use — all four concepts tested in Question 2.
4. AustLII (austlii.edu.au). Free full text of ITAA 1936, ITAA 1997 and the case law on residency, permanent place of abode, windfall receipts and home-to-work travel. Because Holmes requires sources with full-text access and a hyperlink, AustLII is ideal for citations.
5. ATO residency guidance and the Australia–Japan tax treaty. The ATO’s residency tests material plus Treasury’s treaty text give you the authority for Question 3’s residency conclusion, foreign income tax offset discussion and treaty relief.

Your Holmes library databases and the unit’s prescribed taxation text remain the best secondary sources for principles — but always anchor a conclusion to the legislation or a case, not to a textbook summary alone.

Common Mistakes That Cost Marks in HI6028

• Including the franked dividend without the gross-up, then forgetting the offset at the end.
• Including 100% of the joint term deposit interest rather than Sarah’s 50% entitlement.
• Treating the ATO refund or the exempt scholarship as assessable income.
• Putting the investment unit repairs inside the business profit calculation.
• Claiming the full $58,000 van cost instead of the instructed 25%-of-cost, business-apportioned deduction.
• Forgetting the Medicare levy surcharge despite the brief stressing no private hospital cover.
• Counting kilometres travelled instead of days available for private use in the car FBT calculation.
• Applying one gross-up rate to all fringe benefits rather than distinguishing type 1 from type 2.
• Concluding Elena is a non-resident without addressing the Fremantle family home, the school-aged child and the joint account.
• Running well over 1,000 words, or omitting the cover page — both are avoidable penalties.

Penalty Checklist: Protect Your 40%

Fake citations are treated as academic misconduct, so never invent a reference — check that every hyperlink opens before you submit. For a walkthrough of the upload process itself, see our Holmes Institute Blackboard submission guide.

Related Holmes Institute and Taxation Guides

HI6028 sits inside the Holmes MPA and MBA suite, and the taxation concepts it tests recur across several units. These guides go deeper on the individual topics:

• Holmes Institute Assignment Help — the hub page covering every Holmes unit, marking rubrics and referencing rules.
• Fringe Benefits Tax (FBT) Assignment Help — essential background for Question 2, including gross-up rates and the otherwise deductible rule.
• Capital Gains Tax (CGT) Assignment Help — useful for understanding how the net capital gain in Question 1 is built.
• Tax Law Assignment Help: CGT and Fringe Benefits — worked explanations across both topics.
• Taxation Law Assignment Help Australia — broader coverage of income tax, GST and CGT principles.
• HI6006 Competitive Strategy Group Assignment T2 2026 — the companion T2 2026 guide for the strategy unit.
• HI6025 Accounting Theory and Current Issues and HI6026 Auditing, Assurance and Compliance — sister units in the same accounting stream.
• HI6034 Enterprise Information Systems — for students taking the IS electives alongside.

Need Help With Your HI6028 Assignment?

Taxation units punish small errors: one missed gross-up, one wrong gross-up factor, one unsupported residency conclusion and a distinction becomes a pass. With only 1,000 words to cover three questions, precision matters more than volume.

At Punjab Assignment Help, our Australian taxation specialists work with Holmes Institute students every trimester. For HI6028 we provide item-by-item classification tables, fully worked calculations with visible formulas, FBT computations using the correct method and gross-up factors, residency analysis grounded in case law, and referencing formatted to the Holmes Adapted Harvard rules — original, plagiarism-checked work delivered before your deadline so you can review and learn from it.

Get a free quote for your HI6028 T2 2026 assignment today — or message us on WhatsApp for an instant response.

HI6028 Frequently Asked Questions

How much is the HI6028 individual assignment worth?

It is worth 40% of your final HI6028 grade in T2 2026, with a maximum length of 1,000 words and a total of 40 marks across three questions.

What are the three HI6028 T2 2026 questions about?

Question 1 (20 marks) covers the income tax treatment of receipts and payments for sole trader Sarah Nguyen plus a full 2025–26 tax calculation. Question 2 (10 marks) covers fringe benefits tax for Alpine Gear Pty Ltd — a car, a low-interest loan and an international airfare. Question 3 (10 marks) covers tax residency and foreign income for Elena Takamura.

Do I need to consider GST in Question 1?

No. The brief states that although Sarah is registered for GST, you must ignore all GST consequences, and all amounts are exclusive of GST unless stated otherwise.

Is the game show prize assessable income?

Generally a prize from a game of chance that is unconnected to any business or income-earning activity is treated as a windfall and not ordinary income. You must justify your classification with reference to case law rather than simply asserting it.

How do I treat the franked dividend?

Gross it up: include the $8,400 cash dividend plus the $3,600 franking credit in assessable income, then claim the $3,600 as a tax offset when calculating net tax payable or refundable.

What is the word limit and format for HI6028?

Maximum 1,000 words, submitted as a Microsoft Word document on Blackboard with a completed Assignment Cover Page, referenced using the Holmes Institute Adapted Harvard method.

Can you help with the HI6028 assignment?

Yes — our taxation experts provide complete HI6028 guidance across all three questions, with worked calculations and Holmes-compliant referencing. Contact Punjab Assignment Help for a free quote.