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100+ Free CA Program Core 4: Tax (Australia) Practice Questions

Prepare for the CA Program Core 4: Tax (Australia) — CACC1503AU exam with instant access — no signup required.

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2026 Statistics

Key Facts: CA Program Core 4: Tax (Australia) Exam

CACC1503AU

Subject Code

CA ANZ CA Program

9 weeks

Study Period

CA ANZ CA Program

50%

Individual CGT Discount

ITAA 1997 Div 115

10%

GST Rate

GST Act 1999

47%

FBT Rate 2025-26

ATO

12%

Super Guarantee from 1 Jul 2025

ATO

CA Program Core 4: Tax (Australia) is an online GradDipCA subject (CACC1503AU) delivered over a 9-week study period with a high-stakes invigilated final examination combining objective and extended-response questions. It applies current Australian tax law: 2025-26 resident marginal rates from 16% to 45%, the 50% individual CGT discount, 10% GST with a $75,000 registration threshold, a 47% FBT rate, the 12% super guarantee from 1 July 2025, dividend imputation and franking, Division 7A, Part IVA, and the Tax Agent Services regime. Together with Advanced Tax (AU), it meets TPB Board-approved course requirements. CA ANZ does not publish a fixed question count, pass mark, or pass rate.

Sample CA Program Core 4: Tax (Australia) Practice Questions

Try these sample questions to test your CA Program Core 4: 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 Income Tax Assessment Act 1936, which test is NOT one of the four statutory tests used to determine whether an individual is a resident of Australia for tax purposes?
A.The resides test (ordinary concepts)
B.The domicile and permanent place of abode test
C.The 183-day test
D.The citizenship test
Explanation: Section 6(1) ITAA 1936 sets out four residency tests for individuals: resides (ordinary concepts), domicile/permanent place of abode, the 183-day test, and the Commonwealth superannuation fund test. Citizenship is irrelevant to Australian tax residency.
2A resident of Australia for tax purposes is generally assessed on:
A.Ordinary and statutory income from all sources, worldwide
B.Only income remitted to Australia
C.Only employment income earned in Australia
D.Only Australian-sourced income
Explanation: Under sections 6-5(2) and 6-10(4) ITAA 1997, an Australian resident's assessable income includes ordinary and statutory income derived from all sources, both in and out of Australia. Foreign residents are assessed only on Australian-sourced income.
3A foreign resident derives interest income paid by an Australian bank. How is this typically taxed in Australia?
A.Subject to a 30% withholding tax with no exemptions
B.Assessed at marginal rates with the tax-free threshold
C.Subject to a final withholding tax of 10%
D.Exempt because the taxpayer is a foreign resident
Explanation: Interest paid to foreign residents is generally subject to a final interest withholding tax of 10% of the gross interest under Division 11A ITAA 1936. The withholding is a final tax, so the income is not included again in an assessment.
4Salary and wages received by an employee are best classified for tax purposes as:
A.A capital receipt
B.Exempt income
C.Statutory income under a specific provision
D.Ordinary income under section 6-5
Explanation: Salary and wages are income according to ordinary concepts and are assessable as ordinary income under section 6-5 ITAA 1997 because they are a periodic reward for personal services. They are not brought to account by a specific statutory provision.
5Which of the following is an example of statutory income rather than ordinary income?
A.A net capital gain assessable under the CGT provisions
B.Interest from a term deposit
C.Business trading profits
D.Rent from an investment property
Explanation: A net capital gain is included in assessable income by section 102-5 ITAA 1997, making it statutory income because a specific provision (not ordinary concepts) brings it to account. Rent, interest and trading profits are all ordinary income under section 6-5.
6Under the 2025-26 resident individual tax rates, what is the marginal tax rate (excluding Medicare levy) applying to taxable income between $45,001 and $135,000?
A.45%
B.16%
C.30%
D.37%
Explanation: For 2025-26, resident marginal rates are 0% up to $18,200, 16% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. The $45,001-$135,000 band is taxed at 30%.
7The Medicare levy for most resident individuals in 2025-26 is charged at what rate of taxable income (before any Medicare levy surcharge)?
A.1%
B.1.5%
C.2%
D.2.5%
Explanation: The standard Medicare levy is 2% of taxable income for most resident individuals, subject to low-income thresholds that reduce or remove the levy. The Medicare levy surcharge is a separate additional charge for higher-income taxpayers without adequate private hospital cover.
8An individual makes a capital gain on shares held for more than 12 months. What CGT discount percentage can the individual generally apply to the discount capital gain?
A.60%
B.75%
C.33.33%
D.50%
Explanation: Under Division 115 ITAA 1997, individuals and trusts can apply a 50% CGT discount to a capital gain on an asset held for at least 12 months. Complying superannuation funds receive a 33.33% discount, and companies receive no discount.
9An individual buys shares for $20,000 and sells them 18 months later for $32,000, with no other CGT events. What is the net capital gain included in assessable income after applying the CGT discount?
A.$6,000
B.$4,000
C.$16,000
D.$12,000
Explanation: The gross capital gain is $32,000 - $20,000 = $12,000. Because the shares were held for more than 12 months, the individual applies the 50% CGT discount, giving a net capital gain of $6,000 to include in assessable income.
10Which CGT event is the most common, occurring on the disposal of a CGT asset?
A.CGT event A1
B.CGT event C1
C.CGT event D1
D.CGT event E1
Explanation: CGT event A1 in section 104-10 ITAA 1997 happens when there is a disposal of a CGT asset, such as a sale, and is the most common CGT event. The timing is generally when the contract is entered into, or when change of ownership occurs if there is no contract.

About the CA Program Core 4: Tax (Australia) Exam

CA Program Core 4: Tax (Australia), subject code CACC1503AU, develops the knowledge and skills to provide Australian tax services and advice. It covers residency and source, assessable income, deductions, trading stock, capital allowances, CGT, FBT, GST, the taxation of individuals, companies, partnerships and trusts, dividend imputation, superannuation, tax administration, anti-avoidance, and the ethical and professional obligations of tax practitioners.

Assessment

Question count not published by the exam provider

Time Limit

Invigilated final examination set each term within the 9-week study period

Passing Score

Set by CA ANZ for each examination; no fixed public raw percentage is published

Exam Fee

CA Program subject fee published by CA ANZ each term; see the timetables, fees and enrolment page (Chartered Accountants Australia and New Zealand (CA ANZ))

CA Program Core 4: Tax (Australia) Exam Content Outline

~40% (with deductions)

Residency, Source and Assessable Income

Residency and source tests, ordinary and statutory income, exempt income, assessable income for individuals and entities, and foreign income with withholding and foreign income tax offsets.

~40% (with income)

Deductions, Trading Stock and Capital Allowances

General and specific deductions, the section 8-1 limbs, denied deductions, trading stock valuation and adjustments, and Division 40 depreciation under prime cost and diminishing value.

~15%

Capital Gains Tax

CGT events, cost base elements, the 50% individual discount, main residence and other exemptions, capital losses, and small business CGT concessions under Division 152.

~20%

Entity Taxation and Dividend Imputation

Taxation of individuals, companies, partnerships and trusts, base rate entity rates, franking credits and gross-up, Division 7A deemed dividends, and trust present-entitlement rules.

~15%

GST and Fringe Benefits Tax

GST taxable, GST-free and input-taxed supplies, input tax credits and tax invoices, the BAS, FBT taxable value, gross-up, exempt benefits, and reportable fringe benefits.

~10%

Administration, Anti-Avoidance and Ethics

Superannuation taxation, tax administration, amendment periods and penalties, Part IVA, the Tax Agent Services regime and TPB, and ethical obligations under APES 110.

How to Pass the CA Program Core 4: Tax (Australia) Exam

What You Need to Know

  • Passing score: Set by CA ANZ for each examination; no fixed public raw percentage is published
  • Assessment: Question count not published by the exam provider
  • Time limit: Invigilated final examination set each term within the 9-week study period
  • Exam fee: CA Program subject fee published by CA ANZ each term; see the timetables, fees and enrolment 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 Program Core 4: Tax (Australia) Study Tips from Top Performers

1Anchor your study to current 2025-26 rates and thresholds, such as the 16-45% resident rates, 50% CGT discount, 10% GST, 47% FBT rate, and 12% super guarantee.
2Practise full scenario questions because the real examination uses extended-response items that apply tax law to facts, not only multiple choice.
3Master the order of CGT calculations: deduct capital losses before applying the 50% discount.
4Distinguish ordinary income (section 6-5) from statutory income and revenue from capital, as this underpins many questions.
5Build entity-taxation fluency across companies, partnerships and trusts, including franking gross-up and Division 7A.
6Do not neglect ethics and the Tax Agent Services Code; integrity, confidentiality, and the TPB Code are reliably examinable.

Frequently Asked Questions

What is CA Program Core 4: Tax (Australia)?

It is the Australian Tax subject of the CA ANZ CA Program, subject code CACC1503AU, delivered online over a 9-week study period. It develops the knowledge and skills to provide Australian tax services and advice and forms part of the Graduate Diploma of Chartered Accounting.

Is the CA ANZ Tax exam multiple choice?

The final examination is invigilated and combines objective questions, including multiple-choice, with extended-response questions that apply Australian tax law to scenarios. CA ANZ does not publish a fixed question count, so this prep bank uses 100 MCQs to build the underlying knowledge.

Does the Tax subject count toward registering as a tax agent?

Yes. CA ANZ states that completing both Core Tax (AU) (CACC1503AU) and Advanced Tax (AU) (CACC1508AU) together meets the Tax Practitioners Board's Board-approved Australian taxation law course and the relevant TASA unit requirements.

What Australian tax rates does the subject use in 2025-26?

It applies current law, including resident marginal rates of 0%, 16%, 30%, 37% and 45%, a 2% Medicare levy, the 50% individual CGT discount, 10% GST, a 47% FBT rate, and the 12% super guarantee that applied from 1 July 2025.

How long is the study period for the Tax subject?

Each CA Program term runs the Tax subject over a 9-week study period of continuous learning and earlier assessment, followed by a high-stakes invigilated final examination. Most candidates study around 10-12 hours per week alongside work.

Should I take the Australian or New Zealand Tax subject?

CA ANZ offers separate Australian (CACC1503AU) and New Zealand (CACC1503NZ) Tax subjects, and you can enrol in either regardless of where you live. Candidates generally choose the subject for the jurisdiction where they work.

What is the passing score for the CA ANZ Tax exam?

CA ANZ sets the standard for each examination and does not publish a fixed public raw passing percentage. Results are reported individually to candidates, so you should aim for consistent mastery across all topics rather than a single target mark.

What ethics and anti-avoidance content is examined?

The subject covers Part IVA general anti-avoidance, the Tax Agent Services regime and the Tax Practitioners Board Code of Professional Conduct, and ethical obligations under APES 110, including integrity, confidentiality, competence, and managing conflicts of interest.