PracticeVideosBlogFlashcardsEspañol
All Practice Exams

100+ Free CA ANZ Advanced Tax (Australia) Practice Questions

Prepare for the CA Program Elective: Advanced Tax (Australia) exam with instant access — no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
Not published by CA ANZ for this elective subject Pass Rate
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More Chartered Accountants ANZ (CA ANZ)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

CA Program — Core 1: Ethics and Sustainability (CA ANZ)

Practice Questions

CA Program — Core 2: Risk, Technology and Artificial Intelligence (CA ANZ)

Practice Questions

CA Program — Core 3: Financial Accounting and Reporting (FAR) (CA ANZ)

Practice Questions

CA Program — Core 4: Tax (Australia) (CA ANZ)

Practice Questions

CA Program — Core 4: Tax (New Zealand) (CA ANZ)

Practice Questions

CA Program — Core 5: Strategy and Business Performance (CA ANZ)

Practice Questions
2026 Statistics

Key Facts: CA ANZ Advanced Tax (Australia) Exam

CACC1508AU

Subject Code

CA ANZ Course Descriptions

7 weeks

Subject Duration

CA ANZ CA Program

$6M

Small Business MNAV Test

ATO Division 152

8.37%

Div 7A Rate 2025-26

Australian Taxation Office

$30,000

Concessional Cap 2025-26

Australian Taxation Office

47%

FBT Rate 2026

Australian Taxation Office

Advanced Tax (Australia), subject code CACC1508AU, is an online elective in the CA Program GradDipCA that requires Core 1 Ethics and Core 4 Tax (AU) as prerequisites. It runs over seven weeks and is assessed through scenario and application-based assessment with objective and extended-response components rather than a fixed multiple-choice test. The syllabus weights toward advanced entity, group and consolidation taxation, complex CGT and restructures, international tax, trusts, Division 7A and superannuation, and tax administration and ethics. Together with Core Tax (AU), it forms part of a Board approved Australian taxation law course recognised by the Tax Practitioners Board. This free prep models that body of knowledge as 100 multiple-choice questions grounded in current 2025-26 Australian tax law.

Sample CA ANZ Advanced Tax (Australia) Practice Questions

Try these sample questions to test your CA ANZ Advanced Tax (Australia) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the single entity rule that applies to an Australian income tax consolidated group, how is an intra-group transaction between two wholly owned subsidiary members treated for income tax purposes?
A.It is recognised at market value, generating an assessable gain to the seller
B.It is disregarded because the subsidiaries are treated as parts of the head company
C.It is taxed only if the asset is later sold outside the group within 12 months
D.It generates a deductible loss to the buyer but no assessable income to the seller
Explanation: The single entity rule in section 701-1 treats subsidiary members as parts of the head company while they remain in the group, so intra-group dealings are not recognised for income tax purposes. Only the head company lodges and is assessed. This eliminates intra-group gains, losses and dividends.
2What is the maximum net asset value threshold a taxpayer must not exceed (together with connected entities and affiliates) to satisfy the maximum net asset value test for the small business CGT concessions?
A.$2 million
B.$6 million
C.$10 million
D.$50 million
Explanation: Under section 152-15, the maximum net asset value test requires that the total net value of CGT assets of the taxpayer, connected entities and affiliates does not exceed $6 million just before the CGT event. The $6 million figure is not indexed.
3A private company makes a loan to a shareholder during the year and does not put it on a complying loan agreement before the lodgment day. What is the primary Division 7A consequence?
A.The loan is automatically forgiven and the company claims a deduction
B.The shareholder is taken to receive an unfranked deemed dividend up to the company's distributable surplus
C.The company must pay fringe benefits tax on the loan amount
D.The loan is rolled over tax-free into the next income year
Explanation: Division 7A treats a non-complying loan from a private company to a shareholder or associate as an unfranked deemed dividend, assessable to the recipient and limited to the company's distributable surplus. A complying loan under section 109N (minimum interest and maximum term) avoids this outcome.
4What is the Division 7A benchmark interest rate that applies for the 2025-26 income year for setting the minimum interest on a complying loan?
A.4.52%
B.8.37%
C.8.77%
D.10.00%
Explanation: The ATO set the Division 7A benchmark interest rate for the 2025-26 income year at 8.37%, based on the RBA indicator lending rate for bank variable housing loans. A complying loan must charge at least this rate to avoid a deemed dividend.
5Under Part IVA of the Income Tax Assessment Act 1936, what must the Commissioner conclude before cancelling a tax benefit obtained from a scheme?
A.That the scheme was illegal under the Corporations Act
B.That a person entered the scheme for the dominant purpose of obtaining a tax benefit
C.That the taxpayer failed to disclose the scheme in their return
D.That the scheme produced an accounting loss
Explanation: Part IVA applies where, having regard to the eight factors in section 177D, it is concluded that a person entered into or carried out a scheme for the dominant purpose of enabling a taxpayer to obtain a tax benefit. Dominant purpose, judged objectively, is the central test.
6A taxpayer satisfies the basic conditions and has owned an active asset for nine years. Which small business CGT concession can reduce the assessable capital gain by 50% in addition to the general 50% CGT discount?
A.The 15-year exemption
B.The small business 50% active asset reduction
C.The retirement exemption
D.The small business rollover
Explanation: The small business 50% active asset reduction in Subdivision 152-C halves the capital gain remaining after the general 50% CGT discount. The two 50% reductions can stack, so a gain can be reduced to 25% before applying further concessions like the retirement exemption.
7What is the lifetime limit on the small business retirement exemption under Subdivision 152-D?
A.$100,000
B.$300,000
C.$500,000
D.$1,000,000
Explanation: The retirement exemption allows an individual to disregard capital gains up to a lifetime limit of $500,000. If the recipient is under 55, the exempt amount must be contributed to a complying superannuation fund or RSA to access the concession.
8Australia's controlled foreign company rules attribute income to Australian controllers when a CFC in an unlisted country fails the active income test. What broadly causes a CFC to fail that test?
A.It distributes all profits as dividends
B.Its tainted (passive) income is 5% or more of gross turnover
C.It employs more than 20 staff
D.It is incorporated in a treaty country
Explanation: A CFC fails the active income test where its tainted income (passive income such as interest, dividends, rent, royalties and tainted sales/services income) is 5% or more of gross turnover. Failing the test causes attributable tainted income to be assessed to Australian controllers currently.
9An Australian company pays an unfranked dividend to a non-resident shareholder in a country with no tax treaty. What is the general dividend withholding tax rate that applies?
A.0%
B.10%
C.15%
D.30%
Explanation: The default dividend withholding tax rate on the unfranked portion of a dividend paid to a non-resident is 30%, though tax treaties commonly reduce this to 15% or less. Franked dividends are exempt from dividend withholding tax to the extent franked.
10Which method must be used as the starting point for testing whether the conditions of an international related-party dealing comply with Australia's transfer pricing rules in Subdivision 815-B?
A.The actual contractual price regardless of market
B.The arm's length conditions that independent parties would have agreed
C.The lowest price available in any jurisdiction
D.The price set by the foreign tax authority
Explanation: Subdivision 815-B requires that the conditions of cross-border related-party dealings reflect the arm's length conditions that would operate between independent entities. Where actual conditions differ and confer a tax advantage, a transfer pricing benefit is negated and the arm's length conditions substituted.

About the CA ANZ Advanced Tax (Australia) Exam

CA Program Advanced Tax (Australia) is a GradDipCA elective subject that develops advanced Australian taxation knowledge, including the consolidation regime, complex CGT and small business concessions, international tax, taxation of trusts and Division 7A, superannuation, FBT and GST complexities, anti-avoidance, and professional and ethical responsibilities under the Tax Agent Services regime.

Assessment

Question count not published by the exam provider

Time Limit

7-week subject with timed assessment windows set by CA ANZ each term

Passing Score

Set by CA ANZ for the subject assessment; no fixed public raw percentage is published

Exam Fee

Set by CA ANZ per term as part of GradDipCA enrolment; see the CA Program timetable and fees page (Chartered Accountants Australia and New Zealand (CA ANZ))

CA ANZ Advanced Tax (Australia) Exam Content Outline

~30%

Advanced Entity and Group Taxation, Consolidations

Tax consolidation single entity rule, allocable cost amounts, loss transfer and available fraction, imputation and franking, company tax rates, and group structuring.

~20%

CGT and Restructures

Complex CGT events, small business CGT concessions, rollovers, restructures, blackhole expenditure, and FBT and GST complexities in transactions.

~20%

International Tax

Residency, transfer pricing, controlled foreign companies, withholding taxes, thin capitalisation, treaties, and multinational anti-avoidance measures.

~20%

Trusts, Division 7A and Superannuation

Trust net income, streaming, present entitlement, Division 7A loans and UPEs, superannuation caps, SMSF taxation, and contribution rules.

~10%

Administration and Ethics

Part IVA general anti-avoidance, penalties, objections and rulings, Tax Agent Services Act, TPB Code of Professional Conduct, and communicating complex advice.

How to Pass the CA ANZ Advanced Tax (Australia) Exam

What You Need to Know

  • Passing score: Set by CA ANZ for the subject assessment; no fixed public raw percentage is published
  • Assessment: Question count not published by the exam provider
  • Time limit: 7-week subject with timed assessment windows set by CA ANZ each term
  • Exam fee: Set by CA ANZ per term as part of GradDipCA enrolment; see the CA Program timetable and fees page

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CA ANZ Advanced Tax (Australia) Study Tips from Top Performers

1Work scenario questions end to end, because the subject is assessed through application rather than recall of isolated rules.
2Memorise current thresholds such as the $6 million MNAV test, $500,000 retirement exemption, and the 8.37% Division 7A rate for 2025-26.
3Practise distinguishing the four small business CGT concessions and the order in which they apply.
4Build a decision tree for the consolidation single entity rule, entry and exit allocable cost amounts, and loss available fractions.
5Map international tax rules (residency, transfer pricing, CFC, withholding, thin capitalisation) to the relevant divisions before the assessment.
6Always connect technical answers to the TPB Code obligations and Part IVA risk when advising on structures.

Frequently Asked Questions

What is the CA ANZ Advanced Tax (Australia) subject?

It is an elective subject in the CA Program GradDipCA, subject code CACC1508AU, that develops advanced Australian taxation knowledge such as consolidations, complex CGT, international tax, trusts, Division 7A, superannuation, and tax ethics.

What are the prerequisites for Advanced Tax (Australia)?

Candidates must complete Core 1 Ethics and Business and Core 4 Tax (AU) before enrolling in the Advanced Tax (Australia) elective. The elective builds on the foundational Australian tax knowledge from Core Tax.

How is the Advanced Tax (Australia) subject assessed?

CA ANZ assesses the subject through scenario and application-based assessment with objective and extended-response components delivered online over the seven-week subject, rather than a single fixed multiple-choice exam.

Does this subject count toward tax agent registration?

Yes. The Tax Practitioners Board recognises completion of Core Tax (AU) together with Advanced Tax (Australia) as a Board approved Australian taxation law course meeting the relevant TASA unit requirements.

How long is the Advanced Tax (Australia) subject?

It runs as a seven-week online subject within the GradDipCA. Most candidates allocate roughly 120-150 hours of study alongside their professional work during the term.

What topics carry the most weight in Advanced Tax (Australia)?

The body of knowledge weights toward advanced entity, group and consolidation taxation, with substantial coverage of complex CGT and restructures, international tax, and trusts, Division 7A and superannuation, plus tax administration and ethics.

What is the Division 7A benchmark interest rate for 2025-26?

The ATO set the Division 7A benchmark interest rate for the 2025-26 income year at 8.37%. A complying private company loan must charge at least this rate to avoid a deemed unfranked dividend.

What is the maximum net asset value test threshold for small business CGT concessions?

A taxpayer, with connected entities and affiliates, must not exceed $6 million in net CGT assets just before the CGT event to satisfy the maximum net asset value test under Division 152.