BULAW 3731 INCOME TAXATION – Law & Practice
Assignment
Semester 2 - 2013
INSTRUCTIONS
1. See the Instructions and Assessment Criteria in the Course Description and make sure you follow them!
2. Please answer all parts of the question
3. Attached to this document is a Checklist to be filled in by you and attached to your essay/assignment. Read this now before you start your research. If you have followed this checklist, there is a good chance you will do well.
4. All work presented for assessment in this course must comply with the
format outlined in the University's Presentation of Academic Work
publication, available from the bookshop or on-line at
www.ballarat.edu.au/generalguide.
5. All essays must be accompanied by a signed official cover sheet ('Plagiarism Declaration Form'), available at www.ballarat.edu.au/ard/business/student_info_webct.shtml and lodged as appropriate for your campus.
6. You MUST reference in the body of the essay every time you use information from other people. This requires you to keep a track of where you are taking information from and then writing the reference up. You should use the Harvard/APA style; and use the University’s new Presentation of Academic Work. The Library’s website also has a citation style guide site. If you plagiarise (intentionally OR unintentionally) you will be given zero: see Regulation 6.1.1 for more details.
7. DUE DATE: You will be advised by your Lecturer but Week 9 should be taken as a guide. Please check with the Course Description for details of where and when to submit your assignment. If you need an extension you must ask for one BEFORE the due date (unless this is impossible).
8. The assignment should not exceed approximately 2000 words.
9. The assignment is worth 25%.
Assignment
Part A [Approx 50%]
Explain why the payment to the taxpayer in FCT v Dixon (1952) 86 CLR 540 was assessable income but the payment in Scott v FCT (1966) 117 CLR 514 was not.
In your answer you should include (but not necessarily be limited to) the following:
i) A brief statement in your own words of the facts of the cases.
ii) Identify the issues raised and the relevant legislation in the context of ITAA97.
iii) Identify any cases and other sources of information relevant to the issues and legislation.
iv) Apply the law to the facts stating clearly why one taxpayer was assessable and the other was not.
Part B [Approx 50%]
Nigel is a professional percussionist and performs with a number of bands and orchestras. In order to practice, he set aside a special room in his house that is soundproof and contains a variety of electronic sound equipment. The room is used only for practice or performance related purposes. He pays council rates, interest on the house mortgage, repairs and maintenance, electricity and telephone expenses in connection with the house. He believes he should be able to claim tax deductions for all these costs together with depreciation on the room and equipment.
Explain the tax position to Nigel. In you answer you should:
i) Identify the tax issues that are raised and the relevant sections of the legislation.
ii) Identify any cases and other sources of law or information that apply.
iii) Apply the law to the facts.
iv) Express a conclusion in regard to the issues identified and indicate any other information required.
University of Ballarat – The Business School
CHECKLIST TO BE ATTACHED TO ASSIGNMENT IN BULAW 3731
Name: ……………………………………………………………..
Student No. ………………………………..
Please check that you have done the following. Tick the boxes to show you have!
? Submitted an assignment that is your own work. (You may discuss the essay topics with others but you cannot copy another’s work, give your work to someone else to copy, or work closely with another student on how to structure or write the essay.)
? The assignment is no more than 2000 words long (excluding abstract, references, bibliography).
? Read and tried to address the criteria in the Course Description.
? Read and addressed the issues raised in the University’s Presentation of Academic Work
? Read Regulation 6.1.1, Plagiarism and asked questions if you are unsure about what it means.
? Referenced direct quotes (use quotation marks or indent) AND summarising from another person’s work in the body of the essay. (This includes internet sources).
? Indicated what referencing style you have chosen Harvard/APA and USED IT.
? Answered all parts to the question.
? Used headings (even though this is not a report, headings are encouraged to assist structure and flow).
? Proof read the assignment for spelling, punctuation and grammar errors.
? Where required, used relevant sections of legislation, legal rules/principles
? Where required, used cases to support your points or arguments. These cases can be obtained from textbooks, or the CCH online libraries, articles found via AGIS PLUS TEXT database etc.
? Put case citations in the body of the work as well as listing the case in the List of References.
? Discussed the issues as required and put arguments and gave your view.
? Used a range of resources.
? Included a title page with your name, student number, course code and name and lecturer’s name.
? Have a margin so comments can be added; put page numbers and your name and student number on each page.
Thursday, January 17, 2019
ASSIGNMENT This assignment is to be completed in groups of three and carries thirty per-cent of the marks in this unit. Assessment
ASSIGNMENT
This assignment is to be completed in groups of three and carries thirty per-cent of the marks in this unit.
Assessment Criteria:
Student work will generally be assessed in terms of the following criteria:
1. Effectiveness of communication - ie readability, legibility, grammar, spelling, neatness, completeness and presentation will be a minimum threshold requirement for all written work submitted for assessment. Work that is illegible or incomprehensible and does not meet the minimum requirement will be awarded a fail grade.
2. Accuracy - This will be the primary criterion for assessing the computational and procedural tasks.
3. Demonstrated understanding - This will be evidenced by the student's ability to be dialectical in the discussion of contentious issues. Few, if any, accounting concepts are scientific facts and stereotype answers will demonstrate poor understanding on the part of the student.
4. Evidence of research - This will be evidenced by the references made to the statutes, accounting standards, books, journal articles and inclusion of a bibliography.
Note:
1. All written work must conform with the University of Ballarat General Guide for the Presentation of Academic Work.
2. For all written work students must ensure that they submit their own original work. Any act of plagiarism will be severely penalised.
PART A. (10 marks)
You have been asked to analyse Grand Plomp Ltd, a maker of rocket widgets used by NASA. The owners are wondering whether the return received is sufficient to justify the risks taken in each division. You are to consider both divisional risk and return in your analysis and the following information has been collected from the past fifteen years to use in your n your analysis.
Percent Risk Measure % Average
Division of Rocket Standard Beta Annual Rate
Widgets Deviation of Return (%)
A 10 12 1.1 10
B 20 36 1.2 20
C 30 14 0.8 8
D 40 15 0.9 15
• Average annual market return: 12 per cent
• Average annual risk-free rate: 8 per cent
Using standard deviation and beta measures of risk, you are to rank projects in terms of their risk-adjusted return. Those divisions providing the lowest risk per unit of return would be preferred. An analysis can be conducted using a 'total' definition of risk, or standard deviation, and an ’undiversifiable’ definition or risk, or beta.
Given the beta, it is possible to measure the required rate of return. Furthermore, given the proportion of each division within Global Gears, it is possible to calculate the firm beta, return and risk-adjusted return. With this information, it is possible to determine whether Global Gears, as a whole, provides a sufficient return to justify the risks taken by its investors.
You are required to:
• Locate the relevant information
• Select the proper tool or equation
• Organise and manipulate the data
• Explain the solution
PART B (12.5 marks)
Misty Ltd wishes to determine its weighted marginal cost of capital. In preparing for this task, it has compiled the following data:
Source of Capital Target Range of Financing After-Tax
Proportion $ $ Cost
Long-Term Debt 0.4 0 to 300,000 0.065
300,001 to 600,000 0.075
600,001 and above 0.090
Preference Shares 0.1 0 to 100,000 0.095
100,001 and above 0.100
Ordinary Shares 0.5 0 to 500,000 0.11
500,001 to 1,000,000 0.125
1,000,001 and above 0.14
a) Determine the breaking points and ranges of total financing associated with each source of capital;
b) Using the data developed determine the levels of total financing at which the firm's weighted average cost of capital (WACC) will change;
c) Calculate the weighted average cost of capital and the weighted marginal cost (WMCC) for each range of total financing
d) Using the results along with the information on the available investment opportunities shown below, compile the firm's investment opportunities schedule (IOS), plot this schedule and plot the weighted marginal cost of capital schedule
Investment Opportunities Schedule
Investment IRR Initial
Opportunity Investment
A 0.14 200,000
B 0.12 300,000
C 0.11 500,000
D 0.1 300,000
E 0.09 600,000
F 0.08 100,000
e) Which, if any of the available investments would you recommend that the firm accept? Explain your answer.
PART C. (7.5 marks)
Traditional project evaluation/capital budgeting analysis assumes a firm’s only choice is accept or reject a program. In a real business situation, firms face many choices with respect to how to operate a project, both before it starts and after it is underway. Any time a firm has the ability to make choices, there is value added to the project in question – Traditional NPV analysis ignores this value. The study of real options attempts to put a dollar value on the ability to make choices.
a) What are real options and how are they valued.
b) Discuss the following
Locate the following article
IRREVERSIBILITY, UNCERTAINTY, AND INVESTMENT
(Robert S Pindyck – Massachusetts Institute of Technology March – 1990 – old but gold)
Most major investment expenditures have two important characteristics which together can dramatically affect the decision to invest. First, the expenditures are largely irreversible; the firm cannot disinvest, so the expenditures must be viewed as sunk costs. Second, the investments can be delayed, giving the firm an opportunity to wait for new information about prices, costs, and other market conditions before it commits resources.
c) Calculate the following
Pindyck supplies a simple two-period example to illustrate how irreversibility can affect an investment decision and how option pricing methods can be used to value a firm’s investment opportunity, and determine whether or not the firm should invest.
Using the following example replicate Pyndick’s two-period example.
Consider a firm's decision to irreversibly invest in a widget factory. The factory can be built instantly, at a cost of $7m, and will produce 1000 widgets per year forever, with zero operating cost. Currently the price of widgets is $700, but next year the price will change. With probability .6 it will rise to $800, and with probability (l-q) it will fall to $600. The price will then remain at this new level forever. Assume that this risk is fully diversifiable, so that the firm can discount future cash flows using the risk-free rate, which we will take to be 10 percent.
This assignment is to be completed in groups of three and carries thirty per-cent of the marks in this unit.
Assessment Criteria:
Student work will generally be assessed in terms of the following criteria:
1. Effectiveness of communication - ie readability, legibility, grammar, spelling, neatness, completeness and presentation will be a minimum threshold requirement for all written work submitted for assessment. Work that is illegible or incomprehensible and does not meet the minimum requirement will be awarded a fail grade.
2. Accuracy - This will be the primary criterion for assessing the computational and procedural tasks.
3. Demonstrated understanding - This will be evidenced by the student's ability to be dialectical in the discussion of contentious issues. Few, if any, accounting concepts are scientific facts and stereotype answers will demonstrate poor understanding on the part of the student.
4. Evidence of research - This will be evidenced by the references made to the statutes, accounting standards, books, journal articles and inclusion of a bibliography.
Note:
1. All written work must conform with the University of Ballarat General Guide for the Presentation of Academic Work.
2. For all written work students must ensure that they submit their own original work. Any act of plagiarism will be severely penalised.
PART A. (10 marks)
You have been asked to analyse Grand Plomp Ltd, a maker of rocket widgets used by NASA. The owners are wondering whether the return received is sufficient to justify the risks taken in each division. You are to consider both divisional risk and return in your analysis and the following information has been collected from the past fifteen years to use in your n your analysis.
Percent Risk Measure % Average
Division of Rocket Standard Beta Annual Rate
Widgets Deviation of Return (%)
A 10 12 1.1 10
B 20 36 1.2 20
C 30 14 0.8 8
D 40 15 0.9 15
• Average annual market return: 12 per cent
• Average annual risk-free rate: 8 per cent
Using standard deviation and beta measures of risk, you are to rank projects in terms of their risk-adjusted return. Those divisions providing the lowest risk per unit of return would be preferred. An analysis can be conducted using a 'total' definition of risk, or standard deviation, and an ’undiversifiable’ definition or risk, or beta.
Given the beta, it is possible to measure the required rate of return. Furthermore, given the proportion of each division within Global Gears, it is possible to calculate the firm beta, return and risk-adjusted return. With this information, it is possible to determine whether Global Gears, as a whole, provides a sufficient return to justify the risks taken by its investors.
You are required to:
• Locate the relevant information
• Select the proper tool or equation
• Organise and manipulate the data
• Explain the solution
PART B (12.5 marks)
Misty Ltd wishes to determine its weighted marginal cost of capital. In preparing for this task, it has compiled the following data:
Source of Capital Target Range of Financing After-Tax
Proportion $ $ Cost
Long-Term Debt 0.4 0 to 300,000 0.065
300,001 to 600,000 0.075
600,001 and above 0.090
Preference Shares 0.1 0 to 100,000 0.095
100,001 and above 0.100
Ordinary Shares 0.5 0 to 500,000 0.11
500,001 to 1,000,000 0.125
1,000,001 and above 0.14
a) Determine the breaking points and ranges of total financing associated with each source of capital;
b) Using the data developed determine the levels of total financing at which the firm's weighted average cost of capital (WACC) will change;
c) Calculate the weighted average cost of capital and the weighted marginal cost (WMCC) for each range of total financing
d) Using the results along with the information on the available investment opportunities shown below, compile the firm's investment opportunities schedule (IOS), plot this schedule and plot the weighted marginal cost of capital schedule
Investment Opportunities Schedule
Investment IRR Initial
Opportunity Investment
A 0.14 200,000
B 0.12 300,000
C 0.11 500,000
D 0.1 300,000
E 0.09 600,000
F 0.08 100,000
e) Which, if any of the available investments would you recommend that the firm accept? Explain your answer.
PART C. (7.5 marks)
Traditional project evaluation/capital budgeting analysis assumes a firm’s only choice is accept or reject a program. In a real business situation, firms face many choices with respect to how to operate a project, both before it starts and after it is underway. Any time a firm has the ability to make choices, there is value added to the project in question – Traditional NPV analysis ignores this value. The study of real options attempts to put a dollar value on the ability to make choices.
a) What are real options and how are they valued.
b) Discuss the following
Locate the following article
IRREVERSIBILITY, UNCERTAINTY, AND INVESTMENT
(Robert S Pindyck – Massachusetts Institute of Technology March – 1990 – old but gold)
Most major investment expenditures have two important characteristics which together can dramatically affect the decision to invest. First, the expenditures are largely irreversible; the firm cannot disinvest, so the expenditures must be viewed as sunk costs. Second, the investments can be delayed, giving the firm an opportunity to wait for new information about prices, costs, and other market conditions before it commits resources.
c) Calculate the following
Pindyck supplies a simple two-period example to illustrate how irreversibility can affect an investment decision and how option pricing methods can be used to value a firm’s investment opportunity, and determine whether or not the firm should invest.
Using the following example replicate Pyndick’s two-period example.
Consider a firm's decision to irreversibly invest in a widget factory. The factory can be built instantly, at a cost of $7m, and will produce 1000 widgets per year forever, with zero operating cost. Currently the price of widgets is $700, but next year the price will change. With probability .6 it will rise to $800, and with probability (l-q) it will fall to $600. The price will then remain at this new level forever. Assume that this risk is fully diversifiable, so that the firm can discount future cash flows using the risk-free rate, which we will take to be 10 percent.
Monday, November 26, 2018
HI6028 Taxation Theory, Practice & Law T2 2018 Individual Assignment (2500 words)
HI6028 Taxation Theory, Practice
& Law
T2 2018 Individual Assignment
(2500 words)
Due date: Week 10
Maximum marks: 20 (20%)
Instructions:
This assignment is to be submitted by the due date in soft-copy only (Safe assign – Blackboard).
The assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook.
It is the responsibility of the student submitting the work to ensure that the work is in fact his/her own work. Ensure that when incorporating the works of others into your submission that it is appropriately acknowledged.
Question 1 (10 marks)
You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a business. Your client provides the following information of sales of various assets during the current tax year:
(a) Block of vacant land. On 3 June of the current tax year your client signed a contract to sell a block of vacant land for $320,000. She acquired this land in January 2001 for $100,000 and incurred $20,000 in local council, water and sewerage rates and land taxes during her period of ownership of the land. The contract of sale stipulates that a deposit of $20,000 is payable to her when the contract of sale is signed and the balance is payable on 3 January of the next tax year, when the change of ownership will be registered.
(b) Antique bed. On 12 November of the current tax year your client had an antique four-poster Louis XIV bed stolen from her house. She recently had the bed valued for insurance purposes and the market value at 31 October of the current tax year was $25,000. She purchased the bed for $3,500 on 21 July 1986. Although the furniture was in very good condition, the bed needed alterations to allow for the installation of an innerspring mattress. These alterations significantly increased the value of the bed, and cost $1,500. She paid for the alterations on 29 October 1986. On 13 November of the current tax year she lodged a claim with her insurance company seeking to recover her loss. On 16 January of the current tax year her insurance company advised her that the antique bed had not been a specified item on her insurance policy. Therefore, the maximum amount she would be paid under her household contents policy was $11,000. This amount was paid to her on 21 January of the current tax year.
(c) Painting. Your client acquired a painting by a well-known Australian artist on 2 May 1985 for $2,000. The painting had significantly risen in value due to the death of the artist. She sold the painting for $125,000 at an art auction on 3 April of the current tax year.
(d) Shares. Your client has a substantial share portfolio which she has acquired over many years. She sold the following shares in the relevant year of income:
(i) 1,000 Common Bank Ltd shares acquired in 2001 for $15 per share and sold on 4 July of the current tax year for $47 per share. She incurred $550 in brokerage fees on the sale and $750 in stamp duty costs on purchase.
(ii) 2,500 shares in PHB Iron Ore Ltd. These shares were also acquired in 2001 for $12 per share and sold on 14 February of the current tax year for $25 per share. She incurred $1,000 in brokerage fees on the sale and $1,500 in stamp duty costs on purchase
(iii) 1,200 shares in Young Kids Learning Ltd. These shares were acquired in 2005 for $5 per share and sold on 14 February of the current tax year for $0.50 per share. She incurred $100 in brokerage fees on the sale and $500 in stamp duty costs on purchase.
(iv) 10,000 shares in Share Build Ltd. These shares were acquired on 5 July of the current tax year for $1 per share and sold on 22 January of the current tax year for $2.50 per share. She incurred $900 in brokerage fees on the sale and $1,100 in stamp duty costs on purchase.
(e) Violin. Your client also has an interest in collecting musical instruments. She plays the violin very well and has several violins in her collection, all of which she plays on
a regular basis. On 1 May of the current tax year she sold one of these violins for $12,000 to neighbor who is in the Queensland Symphony Orchestra. The violin cost her $5,500 when she acquired it on 1 June 1999.
Your client also has a total of $8,500 in capital losses carried forward from the previous tax year, $1,500 of which are attributable to a loss on the sale of a piece of sculpture which she sold in April of the previous year.
Required:
Based on this information, determine your client’s net capital gain or net capital loss for the year ended 30 June of the current tax year.
Question 2 (10 marks)
Rapid-Heat Pty Ltd (Rapid-Heat) is an Electric Heaters manufacturer which sells Electric Heaters directly to the public. On 1 May 2017, Rapid-Heat provided one of its employees; Jasmine, with a car as Jasmine does a lot of travelling for work purposes. However, Jasmine's usage of the car is not restricted to work only. Rapid-Heat purchased the car on that date for $33,000 (including GST).
For the period 1 May 2017 to 31 March 2018, Jasmine travelled 10,000 km in the car and incurred expenses of $550 (including GST) on minor repairs that have been reimbursed by Rapid-Heat. The car was not used for 10 days when Jasmine was interstate and the car was parked at the airport and for another five days when the car was scheduled for annual repairs.
On 1 September 2017, Rapid-Heat provided Jasmine with a loan of $500,000 at an interest rate of 4.25%. Jasmine used $450,000 of the loan to purchase a holiday home and lent the remaining $50,000 to her husband (interest free) to purchase shares in Telstra. Interest on a loan to purchase private assets is not deductible while interest on a loan to purchase income-producing assets is deductible.
During the year, Jasmine purchased an Electric Heaters manufactured by Rapid-Heat for $1,300. The Electric Heaters only cost Rapid-Heat $700 to manufacture and is sold to the general public for $2,600.
Required:
(a) Advise Rapid-Heat of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2018. You may assume that Rapid-Heat would be entitled to input tax credits in relation to any GSTinclusive acquisitions.
(b) How would your answer to (a) differ if Jasmine used the $50,000 to purchase the shares herself, instead of lending it to her husband?
& Law
T2 2018 Individual Assignment
(2500 words)
Due date: Week 10
Maximum marks: 20 (20%)
Instructions:
This assignment is to be submitted by the due date in soft-copy only (Safe assign – Blackboard).
The assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook.
It is the responsibility of the student submitting the work to ensure that the work is in fact his/her own work. Ensure that when incorporating the works of others into your submission that it is appropriately acknowledged.
Question 1 (10 marks)
You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a business. Your client provides the following information of sales of various assets during the current tax year:
(a) Block of vacant land. On 3 June of the current tax year your client signed a contract to sell a block of vacant land for $320,000. She acquired this land in January 2001 for $100,000 and incurred $20,000 in local council, water and sewerage rates and land taxes during her period of ownership of the land. The contract of sale stipulates that a deposit of $20,000 is payable to her when the contract of sale is signed and the balance is payable on 3 January of the next tax year, when the change of ownership will be registered.
(b) Antique bed. On 12 November of the current tax year your client had an antique four-poster Louis XIV bed stolen from her house. She recently had the bed valued for insurance purposes and the market value at 31 October of the current tax year was $25,000. She purchased the bed for $3,500 on 21 July 1986. Although the furniture was in very good condition, the bed needed alterations to allow for the installation of an innerspring mattress. These alterations significantly increased the value of the bed, and cost $1,500. She paid for the alterations on 29 October 1986. On 13 November of the current tax year she lodged a claim with her insurance company seeking to recover her loss. On 16 January of the current tax year her insurance company advised her that the antique bed had not been a specified item on her insurance policy. Therefore, the maximum amount she would be paid under her household contents policy was $11,000. This amount was paid to her on 21 January of the current tax year.
(c) Painting. Your client acquired a painting by a well-known Australian artist on 2 May 1985 for $2,000. The painting had significantly risen in value due to the death of the artist. She sold the painting for $125,000 at an art auction on 3 April of the current tax year.
(d) Shares. Your client has a substantial share portfolio which she has acquired over many years. She sold the following shares in the relevant year of income:
(i) 1,000 Common Bank Ltd shares acquired in 2001 for $15 per share and sold on 4 July of the current tax year for $47 per share. She incurred $550 in brokerage fees on the sale and $750 in stamp duty costs on purchase.
(ii) 2,500 shares in PHB Iron Ore Ltd. These shares were also acquired in 2001 for $12 per share and sold on 14 February of the current tax year for $25 per share. She incurred $1,000 in brokerage fees on the sale and $1,500 in stamp duty costs on purchase
(iii) 1,200 shares in Young Kids Learning Ltd. These shares were acquired in 2005 for $5 per share and sold on 14 February of the current tax year for $0.50 per share. She incurred $100 in brokerage fees on the sale and $500 in stamp duty costs on purchase.
(iv) 10,000 shares in Share Build Ltd. These shares were acquired on 5 July of the current tax year for $1 per share and sold on 22 January of the current tax year for $2.50 per share. She incurred $900 in brokerage fees on the sale and $1,100 in stamp duty costs on purchase.
(e) Violin. Your client also has an interest in collecting musical instruments. She plays the violin very well and has several violins in her collection, all of which she plays on
a regular basis. On 1 May of the current tax year she sold one of these violins for $12,000 to neighbor who is in the Queensland Symphony Orchestra. The violin cost her $5,500 when she acquired it on 1 June 1999.
Your client also has a total of $8,500 in capital losses carried forward from the previous tax year, $1,500 of which are attributable to a loss on the sale of a piece of sculpture which she sold in April of the previous year.
Required:
Based on this information, determine your client’s net capital gain or net capital loss for the year ended 30 June of the current tax year.
Question 2 (10 marks)
Rapid-Heat Pty Ltd (Rapid-Heat) is an Electric Heaters manufacturer which sells Electric Heaters directly to the public. On 1 May 2017, Rapid-Heat provided one of its employees; Jasmine, with a car as Jasmine does a lot of travelling for work purposes. However, Jasmine's usage of the car is not restricted to work only. Rapid-Heat purchased the car on that date for $33,000 (including GST).
For the period 1 May 2017 to 31 March 2018, Jasmine travelled 10,000 km in the car and incurred expenses of $550 (including GST) on minor repairs that have been reimbursed by Rapid-Heat. The car was not used for 10 days when Jasmine was interstate and the car was parked at the airport and for another five days when the car was scheduled for annual repairs.
On 1 September 2017, Rapid-Heat provided Jasmine with a loan of $500,000 at an interest rate of 4.25%. Jasmine used $450,000 of the loan to purchase a holiday home and lent the remaining $50,000 to her husband (interest free) to purchase shares in Telstra. Interest on a loan to purchase private assets is not deductible while interest on a loan to purchase income-producing assets is deductible.
During the year, Jasmine purchased an Electric Heaters manufactured by Rapid-Heat for $1,300. The Electric Heaters only cost Rapid-Heat $700 to manufacture and is sold to the general public for $2,600.
Required:
(a) Advise Rapid-Heat of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2018. You may assume that Rapid-Heat would be entitled to input tax credits in relation to any GSTinclusive acquisitions.
(b) How would your answer to (a) differ if Jasmine used the $50,000 to purchase the shares herself, instead of lending it to her husband?
BSBADV602 Develop an advertising campaign Assessment 1
BSBADV602 Develop an advertising campaign
1st Edition 2018
Table of Contents
About your Assessment 1
Your assessment declaration 1
Assessment Tasks 2
Assessment Task 1: Define campaign objectives 2
Submission details 2
Overview 2
Evidence requirements 4
Appendices 5
Assessment Task 1 Appendix 1: Bang the Drum Creative case study 5
Assessment Task 1 Appendix 2: Australian Hardware creative brief 6
Feedback sheet assessment task 1 8
Assessment Task 2: Prepare the advertising budget 10
Submission details 10
Overview 10
Evidence requirements 12
Feedback sheet assessment task 2 13
Assessment Task 3: Develop an advertising schedule 15
Submission details 15
Overview 15
Evidence requirements 16
Feedback sheet assessment task 3 17
Assessment Record Summary 19
About your Assessment
This assessment covers BSBADV602 Develop an advertising campaign. The assessment for this unit of competency includes:
? Define campaign objectives
? Prepare the advertising budget
? Develop an advertising schedule.
Your assessor will discuss the assessment with you, including details about:
? the unit of competency and assessment requirements
? recognition of prior learning
? whether you have any special needs that could require adjustments to the assessment process or tasks
? appeals process
? confidentiality and security of information
? signing of this declaration.
The assessments are due, or will take place, at times and locations agreed between you and your assessor. If you are emailing or sending printed or electronic documents for to your assessor make sure that you keep a copy for yourself.
Assessment site/ submission details Suite 2C 1C Grand Avenue Camellia NSW 2142
Assessment date/s
Time/s
Your assessment declaration
The assessment process has been fully explained to me and I understand how it will be conducted. I also agree that all work submitted for assessment is my own.
Learner’s name
Learner’s signature
Date
Contact details (phone or email)
Assessment Tasks
Assessment Task 1: Define campaign objectives
Submission details
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Learner’s name Phone no.
Learner’s ID number
Assessor’s name Phone no.
Assessment site
Assessment date/s Time/s
Further details
Learner’s declaration I declare that the work submitted for this assessment is my own work.
Learner’s signature
Date
The assessment task is due on the date specified by your assessor. Your assessor must approve any variations to this arrangement in writing.
Overview
This task forms part of your assessment for BSBADV602 Prepare an advertising campaign.
This assessment will focus on the skills and knowledge needed to define the campaign objectives for a client by clarifying the advertiser’s purpose and objectives from their advertising brief, determining that the campaign objectives are feasible, legal and ethical.
Your task
Using Appendix 1: Bang the Drum Creative case study, or an organisation agreed upon with your assessor, you will develop an advertising campaign for your client. You may conduct any research necessary to complete this task, but any references (for example, to statistical data) must be accompanied by a link to the reference for verification by your assessor.
Note: This assessment task is the first of three assessment tasks, in which you will define campaign objectives, prepare an advertising budget and develop the schedule for the proposed advertising activities as part of a total, integrated project.
Complete the steps outlined below.
Steps
1. Read Appendix 1: Bang the Drum Creative case study and Appendix 2: Australian Hardware creative brief. For further reading, you may also read AH Business Plan and AH Marketing Plan provided by your assessor.
Note: You may select your own case study for use in the assessment tasks, subject to agreement with the assessor.
2. Develop an advertising campaign brief, which will be built upon with each assessment task. Your brief will include the following sections:
a. a cover page, with your details
b. a table of contents, to be updated after each assessment task
c. an introduction, which will provide an overview of the brief you are creating and the client’s requirements
d. a background, which will provide:
i. a brief recap of what the client has asked for in the original creative brief
ii. an introduction to your organisation
iii. an overview as to why your organisation is the best for the client’s requirements
e. a section titled ‘Objectives’, which will:
i. review the advertising brief provided and outline the advertiser’s purpose and objectives for the advertising campaign
ii. highlight any areas of the brief which may be unclear or ambiguous and explain how you would seek clarification with the client on these areas, as well as the impact any changes may have on the outcomes
iii. state each of the campaign objectives as a quantifiable measurement, outlining what the advertising should accomplish for each objective
iv. outline any internal or external factors that may prevent the campaign objectives from being achieved and how this can be managed to ensure the objectives are achievable
v. highlight any concerns regarding the feasibility or achievability of any of the objectives
vi. outline any factors which may affect consumer or target audience responses, describing how you have determined whether there are any consumer or audience factors.
vii. outline any legal or ethical requirements for the campaign objectives, governing bodies which oversee the advertising industry and any relationship they may have to your campaign
viii. detail any potential risks to your campaign from a legal or ethical perspective.
f. a section of references as needed.
3. Once you have completed the above tasks, conduct a meeting with ‘the client’ – this may be your assessor or another person, to present your brief so far.
Note: If you meet with someone other than your assessor, either the assessor will need to be present or there will need to be a recording of the meeting.
Present the details you have included in your report, with the purpose of clarifying the campaign objectives and explaining any ethical or legal requirements for the campaign based on the objectives.
Evidence requirements
You must:
? submit a document that addresses all the questions listed
? conduct a short presentation to either the assessor or another approved person to outline your findings so far
? submit all documentation in the format and within the timeframe agreed with your assessor.
Your assessor will be looking for evidence that you:
? described and explained the contents of the advertising brief
? clarified the advertiser’s purpose and objectives
? stated the objectives in measurable terms
? explained what the advertising is to accomplish
? determined the feasibility of the objectives based on factors such as budget, product and market conditions
? outlined any internal or external factors that may affect consumer or target audience responses to the campaign
? ensured that the objectives meet legal and ethical requirements.
Appendices
Assessment Task 1 Appendix 1: Bang the Drum Creative case study
About your organisation
You work for Bang the Drum Creative, which is an advertising company with offices in all capital cities in Australia, and regional offices in Auckland, New Zealand, Kuala Lumpur, Malaysia and Singapore. You are a fast-growing company, with over 300 employees. Your in-house creative team includes graphic designers, web designers, video editors and voiceover artists.
About your role
You are a customer relationship manager, working as part of the customer management team. You work with clients after the creative brief has been developed to manage the development of the advertising campaign and coordinate with the client to ensure that all the requirements of the brief are covered in the campaign and that the budget and schedule are adhered to. Most importantly, you ensure that the customer is satisfied both with the process and the final results.
About your client
Your client is Australian Hardware Ltd, which has been established since 1921 and has a good reputation for quality in the home improvement and hardware markets. They have 138 stores nationally and employ over 10,000 staff in various roles.
You can read an overview of their business in the documents AH Business Plan and
AH Marketing Plan included in your learning materials.
The original business and marketing plans were developed in 2013. However, due to a range of market and business factors, they were not able to act on these plans and are now in a position to pick up their plans again and move the business forward.
All the statistics mentioned in the business and marketing plans have stayed fairly constant, which means the numbers are reasonably similar. While Australian Hardware has experienced some growth, particularly with one large competitor recently closing its doors, their growth was not as high as hoped.
Australian Hardware is now looking to introduce a revolutionary new service, offering to the home improvement and hardware industry, called Tradies to You. The plan is to hire out tradespeople to Australian Hardware customers to do the jobs which the customers may not be able to do, or to fix DIY jobs which went wrong. Having completed some further market and industry research, Australian Hardware believe they are ‘on a winner’ with this service and are very excited to get this off the ground as soon as possible.
Assessment Task 1 Appendix 2: Australian Hardware creative brief
Client Australian Hardware
Product Tradies to You
Key observations Competition in the Hardware and DIY market is strong and there exist opportunities to tap into the growth of the DIY and home renovation market.
The growth of home renovation reality TV shows has inspired people to update or ‘transform’ their homes after seeing the remarkable results contestants are having on these TV shows.
Australian Hardware would like to tap into this market by offering their new Tradies to You service, which will supply tradespeople to visit home renovators and help them transform their homes or fix any problems that have been created by renovations which didn’t go to plan.
Consumer insight ? Australian Hardware is a well-known and trusted name
? their products are recognised as good quality and reliable
? DIY home renovators are looking for help at a good price to transform their homes
? DIY home renovators are looking for qualified people who can fix any ‘reno-fails’ while maintaining their pride
? no other hardware stores have captured this market to date.
Communication objectives ? recapture previous customers who have gone to competitors
? consolidate current customers to ensure loyalty
? encourage a new generation to use our services
? engage with the DIY home renovator who needs help to finish a project
? engage with DIY home renovators who have had a ‘reno-fail’ and need help to fix the disaster.
Promise Australian Hardware don’t just give you the right tool for the right job at the right price, we now give you the right tradie to get the job done.
Support You are using an Australian-owned company that supports locals.
You get a respected and well-known brand.
You’ll get a high quality service.
Our tradies are all qualified for the job.
Audience Home owners who have been engaged watching reality TV home renovation shows, such as House Rules, The Block, Auction Squad, Selling Houses Australia, etc.
They are in the 35–50 year old age bracket, have children and live in the suburbs in a comfortable and well-kept home. They fit into the median income bracket, whether single or double income.
While they are happy with their place in life, they want more from their home. They are either looking to upgrade their existing living space, or are looking to upgrade their home to sell and move to a better property.
Current brand equity (rational) I’ve been an Australian Hardware customer before, and will go back there if the price is right, but I’m happy with whoever gives me the products or services I need for the right price.
Desired brand equity (rational) I wouldn’t want to go anywhere else. Australian Hardware’s staff are industry experts. If they don’t offer it, it can’t be worth offering.
Current brand equity (emotional) Aren’t all hardware stores the same?
Desired brand equity (emotional) Australian Hardware is a name I trust. I wouldn’t go anywhere else. This new service sounds just like what I need. I’m doing work on my home at the moment and would definitely trust Australian Hardware with my most valuable asset.
Mandatory requirements Show:
? the service in action
? an Australian Hardware store
? one of our tradies working on a project
? a before and after renovation
? the target audience happy with the result
? testimonials from ‘real’ customers
? our logo and branding.
Timelines ? pre-planning – 3 months
? research – 3 months
? creative – 3 months
? production - 3 months
? actual campaign – 12 months.
Budget $6 million.
Preferred advertising channels ? TV
? radio
? online
? social media.
Feedback sheet assessment task 1
Learner’s name
Learner’s ID number
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Assessment site
Assessment date/s Time/s
Assessment task Assessment Task 1: Define campaign objectives
Method of assessment Written report and presentation
Task: Create and present a written document defining campaign objectives.
The learner: Satisfactory (?)
Yes No
1 described and explained the contents of the advertising brief
2 clarified the advertiser’s purpose and objectives
3 stated the objectives in measurable terms
4 explained what the advertising is to accomplish
5 determined the feasibility of the objectives based on factors such as budget, product and market conditions
6 outlined any internal or external factors that may affect consumer or target audience responses to the campaign
7 ensured that the objectives meet legal and ethical requirements.
8 completed the assessment in the format and within the timeframe agreed with the assessor.
Comments/feedback to the learner
Outcome: Satisfactory Not yet satisfactory
Assessor’s name:
Assessor’s signature:
Assessment Task 2: Prepare the advertising budget
Submission details
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Learner’s name Phone no.
Learner’s ID number
Assessor’s name Phone no.
Assessment site
Assessment date/s Time/s
Further details
Learner’s declaration I declare that the work submitted for this assessment is my own work.
Learner’s signature
Date
The assessment task is due on the date specified by your assessor. Your assessor must approve any variations to this arrangement in writing.
Overview
This task forms part of your assessment for BSBADV602 Develop an advertising campaign
Having completed the identification and clarification of the objectives for this campaign, you now need to prepare an advertising budget for the campaign based on the campaign objectives.
Your task
Based on the case study or organisation used in Assessment Task 1: Define campaign objectives, you will develop an advertising campaign for your client. You may conduct any research necessary to complete this task, but if you provide any references (for example to statistical data), please provide a link to the reference for verification by your assessor.
Note: This assessment task is the second of three assessment tasks, in which you will define campaign objectives, prepare an advertising budget and develop the schedule for the proposed advertising activities as part of a total, integrated project.
Complete the steps outlined below.
Steps
1. Add the following sections to the campaign brief you began for Assessment Task 1:
a. a section titled ‘Target Audience’, which will outline the target audience for this campaign, based on the original brief provided to you in Assessment Task 1.
b. a section titled ‘Promise’, which will outline the promise that was identified in the original brief and explain how it will be used in the campaign.
c. a section titled ‘Message’, which will outline the overall message to be conveyed to the target audience throughout the campaign.
d. a section titled ‘Resources’, which will identify and explain the following resources required, along with indicative costing for each.
i. Research resources – identify which research resources are required to understand market perceptions, brand awareness and reputation, consumer attitudes, etc. Include any focus groups, interviews or questionnaires as required.
ii. Creative resources – identify which creative resources are required, including artists or other creative service providers.
iii. Production resources – identify the production resources which will be required for this campaign, including photographers, editors, copyrighters, advertising (digital, print and TV), etc.
e. a section titled ‘Budget’, which will:
i. provide an explanation of the expenditure on each component of the campaign against the budget provided by the client
ii. outline each of the resources required and allocate a percentage of the total budget for each resource
iii. include a graphical representation of the overall budget for the campaign, versus the budget allocated in the original brief
iv. provide reasoning as to why the total amount of money for the campaign is required.
Note: You may not be able to access costings for all resources, where the supplier doesn’t make pricing freely available. In this instance the learner can select a preferred supplier and allocate an indicative cost to that resource.
f. any additions to the references section.
2. Once all the resource costings have been completed, prepare a short presentation to ‘the client’. As with the first assessment, this must be presented to your assessor, or to another person with your assessor present, or a recording taken of the presentation.
This presentation will:
a. outline the requirements of the campaign, the resources required and the costs in relation to the budget allowed
b. explain why the resources required were selected and how they will benefit the campaign
c. explain how the budget will fulfil the requirements of the brief and what the benefits are.
Evidence requirements
You must:
? submit a document that addresses all the questions listed
? conduct a short presentation to outline your findings so far
? submit all documentation in the format and within the timeframe agreed with your assessor.
Your assessor will be looking for evidence that you:
? assessed and specified the research resource requirements for the campaign
? assessed and specified the resources required for the media options, creative and production services for the campaign
? provided justification for the resources allocated to each component of the campaign to ensure they were not only sufficient, but were able to achieve the campaign objectives
? ensured that the budget met the requirements of the advertising brief.
Feedback sheet assessment task 2
Learner’s name
Learner’s ID number
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Assessment site
Assessment date/s Time/s
Assessment task Assessment Task 2: Prepare the advertising budget
Method of assessment Written report and presentation
Task: Development and presentation of the campaign budget.
The learner: Satisfactory (?)
Yes No
1 assessed and specified the research resource requirements for the campaign
2 assessed and specified the resources required for the media options, creative and production services for the campaign
3 provided justification for the resources allocated to each component of the campaign to ensure they were not only sufficient, but were able to achieve the campaign objectives
4 ensured that the budget met the requirements of the advertising brief
5 completed the assessment in the format and within the timeframe agreed with the assessor.
Comments/feedback to the learner
Outcome: Satisfactory Not yet satisfactory
Assessor’s name:
Assessor’s signature:
Assessment Task 3: Develop an advertising schedule
Submission details
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Learner’s name Phone no.
Learner’s ID number
Assessor’s name Phone no.
Assessment site
Assessment date/s Time/s
Further details
Learner’s declaration I declare that the work submitted for this assessment is my own work.
Learner’s signature
Date
The assessment task is due on the date specified by your assessor. Your assessor must approve any variations to this arrangement in writing.
Overview
This task forms part of your assessment for BSBADV602 Prepare an advertising campaign.
Having completed the advertising budget for this campaign, you now need to prepare an advertising schedule for the campaign based on the campaign objectives and budget.
Your task
Based on the case study provided (or an organisation which you agree on with your assessor), you will develop an advertising campaign for your client. You may conduct any research necessary to complete this task, but if you provide any references (for example to statistical data), please provide a link to the reference for verification by your assessor.
Note: This assessment task is the third of three assessment tasks, in which you will define campaign objectives, prepare an advertising budget and develop the schedule for the proposed advertising activities as part of a total, integrated project.
Complete the steps outlined below.
Steps
1. Add the following sections to the campaign brief you have been working on for your previous assessment tasks:
a. a section titled ‘Schedule’, which will:
i. provide an overview of how the schedule will work
ii. confirm the length of the campaign, from initial research (which you outlined in Assessment Task 1)
iii. provide details on the service providers you will be using for this campaign, including how you determined their suitability for this campaign (based on value for money, legal requirements, etc.) and at which stages of the campaign they will be needed for
iv. produce an advertising schedule using Excel or appropriate software, including: details on research components, creative, media and production requirements; milestones for monitoring progress against budget and scheduling requirements; and a key in the schedule to explain what each of the elements are
v. overview the advertising objectives and targets, including how and at what point in the scheduling these will be measured for effectiveness, and what steps will be taken if objectives are not met at any of the milestones.
b. a conclusion, with final notes
c. any additions to the references section.
2. Produce a presentation to be delivered to ‘the client’ (your assessor, or other approved person) outlining the entire advertising campaign you have developed over the three assessment tasks.
3. Gather feedback from the client and make any changes to the final presentation or advertising brief as needed.
4. Hand in the updated presentation with your advertising brief as part of your assessment.
Evidence requirements
You must:
? conduct a presentation with the final campaign details
? submit the campaign brief after updates based on the client’s feedback
? submit all documentation in the format and within the timeframe agreed with
your assessor.
Your assessor will be looking for evidence that you:
? confirmed the campaign length and timing based on the details from the advertising brief
? identified service providers with the appropriate expertise and negotiated their costs and availability
? selected the appropriate service providers, based on merit and value for money
? ensured that the selection of service providers met legal and ethical requirements
? allowed appropriate time in the schedule to meet creative, media and production requirements and timeframes to ensure the advertising objectives were met.
? set milestones in the schedule to monitor the progress and expenditure against budget and to evaluate campaign effectiveness.
Feedback sheet assessment task 3
Learner’s name
Learner’s ID number
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Assessment site
Assessment date/s Time/s
Assessment task Assessment Task 3: Develop the advertising schedule
Method of assessment Written report and oral presentation
Task: Complete the advertising schedule, make an oral presentation and use feedback to finalise the campaign brief.
The learner: Satisfactory (?)
Yes No
1 confirmed the campaign length and timing based on the details from the advertising brief
2 identified service providers with the appropriate expertise and negotiated their costs and availability
3 selected the appropriate service providers, based on merit and value for money
4 ensured that the selection of service providers met legal and ethical requirements
5 allowed appropriate time in the schedule to meet creative, media and production requirements and timeframes to ensure the advertising objectives were met.
6 set milestones in the schedule to monitor the progress and expenditure against budget and to evaluate campaign effectiveness.
7 completed the assessment in the format and within the timeframe agreed with the assessor.
Comments/feedback to the learner
Outcome: Satisfactory Not yet satisfactory
Assessor’s name:
Assessor’s signature:
Assessment Record Summary
Learner’s name
Learner’s ID number
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Assessment tasks Assessment results (?)
Assessment Task 1: Define campaign objectives Satisfactory Not yet satisfactory
Assessment Task 2: Prepare the advertising budget Satisfactory Not yet satisfactory
Assessment Task 3: Develop an advertising schedule Satisfactory Not yet satisfactory
Overall assessment result (?) Competent Not yet competent
Feedback to the learner:
Feedback from the learner
Assessor’s name
Assessor’s signature
Date
Learner’s statement (learner must sign):
I have received feedback about the assessments and agree that the record above is a true reflection of the tasks performed.
Learner’s signature
1st Edition 2018
Table of Contents
About your Assessment 1
Your assessment declaration 1
Assessment Tasks 2
Assessment Task 1: Define campaign objectives 2
Submission details 2
Overview 2
Evidence requirements 4
Appendices 5
Assessment Task 1 Appendix 1: Bang the Drum Creative case study 5
Assessment Task 1 Appendix 2: Australian Hardware creative brief 6
Feedback sheet assessment task 1 8
Assessment Task 2: Prepare the advertising budget 10
Submission details 10
Overview 10
Evidence requirements 12
Feedback sheet assessment task 2 13
Assessment Task 3: Develop an advertising schedule 15
Submission details 15
Overview 15
Evidence requirements 16
Feedback sheet assessment task 3 17
Assessment Record Summary 19
About your Assessment
This assessment covers BSBADV602 Develop an advertising campaign. The assessment for this unit of competency includes:
? Define campaign objectives
? Prepare the advertising budget
? Develop an advertising schedule.
Your assessor will discuss the assessment with you, including details about:
? the unit of competency and assessment requirements
? recognition of prior learning
? whether you have any special needs that could require adjustments to the assessment process or tasks
? appeals process
? confidentiality and security of information
? signing of this declaration.
The assessments are due, or will take place, at times and locations agreed between you and your assessor. If you are emailing or sending printed or electronic documents for to your assessor make sure that you keep a copy for yourself.
Assessment site/ submission details Suite 2C 1C Grand Avenue Camellia NSW 2142
Assessment date/s
Time/s
Your assessment declaration
The assessment process has been fully explained to me and I understand how it will be conducted. I also agree that all work submitted for assessment is my own.
Learner’s name
Learner’s signature
Date
Contact details (phone or email)
Assessment Tasks
Assessment Task 1: Define campaign objectives
Submission details
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Learner’s name Phone no.
Learner’s ID number
Assessor’s name Phone no.
Assessment site
Assessment date/s Time/s
Further details
Learner’s declaration I declare that the work submitted for this assessment is my own work.
Learner’s signature
Date
The assessment task is due on the date specified by your assessor. Your assessor must approve any variations to this arrangement in writing.
Overview
This task forms part of your assessment for BSBADV602 Prepare an advertising campaign.
This assessment will focus on the skills and knowledge needed to define the campaign objectives for a client by clarifying the advertiser’s purpose and objectives from their advertising brief, determining that the campaign objectives are feasible, legal and ethical.
Your task
Using Appendix 1: Bang the Drum Creative case study, or an organisation agreed upon with your assessor, you will develop an advertising campaign for your client. You may conduct any research necessary to complete this task, but any references (for example, to statistical data) must be accompanied by a link to the reference for verification by your assessor.
Note: This assessment task is the first of three assessment tasks, in which you will define campaign objectives, prepare an advertising budget and develop the schedule for the proposed advertising activities as part of a total, integrated project.
Complete the steps outlined below.
Steps
1. Read Appendix 1: Bang the Drum Creative case study and Appendix 2: Australian Hardware creative brief. For further reading, you may also read AH Business Plan and AH Marketing Plan provided by your assessor.
Note: You may select your own case study for use in the assessment tasks, subject to agreement with the assessor.
2. Develop an advertising campaign brief, which will be built upon with each assessment task. Your brief will include the following sections:
a. a cover page, with your details
b. a table of contents, to be updated after each assessment task
c. an introduction, which will provide an overview of the brief you are creating and the client’s requirements
d. a background, which will provide:
i. a brief recap of what the client has asked for in the original creative brief
ii. an introduction to your organisation
iii. an overview as to why your organisation is the best for the client’s requirements
e. a section titled ‘Objectives’, which will:
i. review the advertising brief provided and outline the advertiser’s purpose and objectives for the advertising campaign
ii. highlight any areas of the brief which may be unclear or ambiguous and explain how you would seek clarification with the client on these areas, as well as the impact any changes may have on the outcomes
iii. state each of the campaign objectives as a quantifiable measurement, outlining what the advertising should accomplish for each objective
iv. outline any internal or external factors that may prevent the campaign objectives from being achieved and how this can be managed to ensure the objectives are achievable
v. highlight any concerns regarding the feasibility or achievability of any of the objectives
vi. outline any factors which may affect consumer or target audience responses, describing how you have determined whether there are any consumer or audience factors.
vii. outline any legal or ethical requirements for the campaign objectives, governing bodies which oversee the advertising industry and any relationship they may have to your campaign
viii. detail any potential risks to your campaign from a legal or ethical perspective.
f. a section of references as needed.
3. Once you have completed the above tasks, conduct a meeting with ‘the client’ – this may be your assessor or another person, to present your brief so far.
Note: If you meet with someone other than your assessor, either the assessor will need to be present or there will need to be a recording of the meeting.
Present the details you have included in your report, with the purpose of clarifying the campaign objectives and explaining any ethical or legal requirements for the campaign based on the objectives.
Evidence requirements
You must:
? submit a document that addresses all the questions listed
? conduct a short presentation to either the assessor or another approved person to outline your findings so far
? submit all documentation in the format and within the timeframe agreed with your assessor.
Your assessor will be looking for evidence that you:
? described and explained the contents of the advertising brief
? clarified the advertiser’s purpose and objectives
? stated the objectives in measurable terms
? explained what the advertising is to accomplish
? determined the feasibility of the objectives based on factors such as budget, product and market conditions
? outlined any internal or external factors that may affect consumer or target audience responses to the campaign
? ensured that the objectives meet legal and ethical requirements.
Appendices
Assessment Task 1 Appendix 1: Bang the Drum Creative case study
About your organisation
You work for Bang the Drum Creative, which is an advertising company with offices in all capital cities in Australia, and regional offices in Auckland, New Zealand, Kuala Lumpur, Malaysia and Singapore. You are a fast-growing company, with over 300 employees. Your in-house creative team includes graphic designers, web designers, video editors and voiceover artists.
About your role
You are a customer relationship manager, working as part of the customer management team. You work with clients after the creative brief has been developed to manage the development of the advertising campaign and coordinate with the client to ensure that all the requirements of the brief are covered in the campaign and that the budget and schedule are adhered to. Most importantly, you ensure that the customer is satisfied both with the process and the final results.
About your client
Your client is Australian Hardware Ltd, which has been established since 1921 and has a good reputation for quality in the home improvement and hardware markets. They have 138 stores nationally and employ over 10,000 staff in various roles.
You can read an overview of their business in the documents AH Business Plan and
AH Marketing Plan included in your learning materials.
The original business and marketing plans were developed in 2013. However, due to a range of market and business factors, they were not able to act on these plans and are now in a position to pick up their plans again and move the business forward.
All the statistics mentioned in the business and marketing plans have stayed fairly constant, which means the numbers are reasonably similar. While Australian Hardware has experienced some growth, particularly with one large competitor recently closing its doors, their growth was not as high as hoped.
Australian Hardware is now looking to introduce a revolutionary new service, offering to the home improvement and hardware industry, called Tradies to You. The plan is to hire out tradespeople to Australian Hardware customers to do the jobs which the customers may not be able to do, or to fix DIY jobs which went wrong. Having completed some further market and industry research, Australian Hardware believe they are ‘on a winner’ with this service and are very excited to get this off the ground as soon as possible.
Assessment Task 1 Appendix 2: Australian Hardware creative brief
Client Australian Hardware
Product Tradies to You
Key observations Competition in the Hardware and DIY market is strong and there exist opportunities to tap into the growth of the DIY and home renovation market.
The growth of home renovation reality TV shows has inspired people to update or ‘transform’ their homes after seeing the remarkable results contestants are having on these TV shows.
Australian Hardware would like to tap into this market by offering their new Tradies to You service, which will supply tradespeople to visit home renovators and help them transform their homes or fix any problems that have been created by renovations which didn’t go to plan.
Consumer insight ? Australian Hardware is a well-known and trusted name
? their products are recognised as good quality and reliable
? DIY home renovators are looking for help at a good price to transform their homes
? DIY home renovators are looking for qualified people who can fix any ‘reno-fails’ while maintaining their pride
? no other hardware stores have captured this market to date.
Communication objectives ? recapture previous customers who have gone to competitors
? consolidate current customers to ensure loyalty
? encourage a new generation to use our services
? engage with the DIY home renovator who needs help to finish a project
? engage with DIY home renovators who have had a ‘reno-fail’ and need help to fix the disaster.
Promise Australian Hardware don’t just give you the right tool for the right job at the right price, we now give you the right tradie to get the job done.
Support You are using an Australian-owned company that supports locals.
You get a respected and well-known brand.
You’ll get a high quality service.
Our tradies are all qualified for the job.
Audience Home owners who have been engaged watching reality TV home renovation shows, such as House Rules, The Block, Auction Squad, Selling Houses Australia, etc.
They are in the 35–50 year old age bracket, have children and live in the suburbs in a comfortable and well-kept home. They fit into the median income bracket, whether single or double income.
While they are happy with their place in life, they want more from their home. They are either looking to upgrade their existing living space, or are looking to upgrade their home to sell and move to a better property.
Current brand equity (rational) I’ve been an Australian Hardware customer before, and will go back there if the price is right, but I’m happy with whoever gives me the products or services I need for the right price.
Desired brand equity (rational) I wouldn’t want to go anywhere else. Australian Hardware’s staff are industry experts. If they don’t offer it, it can’t be worth offering.
Current brand equity (emotional) Aren’t all hardware stores the same?
Desired brand equity (emotional) Australian Hardware is a name I trust. I wouldn’t go anywhere else. This new service sounds just like what I need. I’m doing work on my home at the moment and would definitely trust Australian Hardware with my most valuable asset.
Mandatory requirements Show:
? the service in action
? an Australian Hardware store
? one of our tradies working on a project
? a before and after renovation
? the target audience happy with the result
? testimonials from ‘real’ customers
? our logo and branding.
Timelines ? pre-planning – 3 months
? research – 3 months
? creative – 3 months
? production - 3 months
? actual campaign – 12 months.
Budget $6 million.
Preferred advertising channels ? TV
? radio
? online
? social media.
Feedback sheet assessment task 1
Learner’s name
Learner’s ID number
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Assessment site
Assessment date/s Time/s
Assessment task Assessment Task 1: Define campaign objectives
Method of assessment Written report and presentation
Task: Create and present a written document defining campaign objectives.
The learner: Satisfactory (?)
Yes No
1 described and explained the contents of the advertising brief
2 clarified the advertiser’s purpose and objectives
3 stated the objectives in measurable terms
4 explained what the advertising is to accomplish
5 determined the feasibility of the objectives based on factors such as budget, product and market conditions
6 outlined any internal or external factors that may affect consumer or target audience responses to the campaign
7 ensured that the objectives meet legal and ethical requirements.
8 completed the assessment in the format and within the timeframe agreed with the assessor.
Comments/feedback to the learner
Outcome: Satisfactory Not yet satisfactory
Assessor’s name:
Assessor’s signature:
Assessment Task 2: Prepare the advertising budget
Submission details
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Learner’s name Phone no.
Learner’s ID number
Assessor’s name Phone no.
Assessment site
Assessment date/s Time/s
Further details
Learner’s declaration I declare that the work submitted for this assessment is my own work.
Learner’s signature
Date
The assessment task is due on the date specified by your assessor. Your assessor must approve any variations to this arrangement in writing.
Overview
This task forms part of your assessment for BSBADV602 Develop an advertising campaign
Having completed the identification and clarification of the objectives for this campaign, you now need to prepare an advertising budget for the campaign based on the campaign objectives.
Your task
Based on the case study or organisation used in Assessment Task 1: Define campaign objectives, you will develop an advertising campaign for your client. You may conduct any research necessary to complete this task, but if you provide any references (for example to statistical data), please provide a link to the reference for verification by your assessor.
Note: This assessment task is the second of three assessment tasks, in which you will define campaign objectives, prepare an advertising budget and develop the schedule for the proposed advertising activities as part of a total, integrated project.
Complete the steps outlined below.
Steps
1. Add the following sections to the campaign brief you began for Assessment Task 1:
a. a section titled ‘Target Audience’, which will outline the target audience for this campaign, based on the original brief provided to you in Assessment Task 1.
b. a section titled ‘Promise’, which will outline the promise that was identified in the original brief and explain how it will be used in the campaign.
c. a section titled ‘Message’, which will outline the overall message to be conveyed to the target audience throughout the campaign.
d. a section titled ‘Resources’, which will identify and explain the following resources required, along with indicative costing for each.
i. Research resources – identify which research resources are required to understand market perceptions, brand awareness and reputation, consumer attitudes, etc. Include any focus groups, interviews or questionnaires as required.
ii. Creative resources – identify which creative resources are required, including artists or other creative service providers.
iii. Production resources – identify the production resources which will be required for this campaign, including photographers, editors, copyrighters, advertising (digital, print and TV), etc.
e. a section titled ‘Budget’, which will:
i. provide an explanation of the expenditure on each component of the campaign against the budget provided by the client
ii. outline each of the resources required and allocate a percentage of the total budget for each resource
iii. include a graphical representation of the overall budget for the campaign, versus the budget allocated in the original brief
iv. provide reasoning as to why the total amount of money for the campaign is required.
Note: You may not be able to access costings for all resources, where the supplier doesn’t make pricing freely available. In this instance the learner can select a preferred supplier and allocate an indicative cost to that resource.
f. any additions to the references section.
2. Once all the resource costings have been completed, prepare a short presentation to ‘the client’. As with the first assessment, this must be presented to your assessor, or to another person with your assessor present, or a recording taken of the presentation.
This presentation will:
a. outline the requirements of the campaign, the resources required and the costs in relation to the budget allowed
b. explain why the resources required were selected and how they will benefit the campaign
c. explain how the budget will fulfil the requirements of the brief and what the benefits are.
Evidence requirements
You must:
? submit a document that addresses all the questions listed
? conduct a short presentation to outline your findings so far
? submit all documentation in the format and within the timeframe agreed with your assessor.
Your assessor will be looking for evidence that you:
? assessed and specified the research resource requirements for the campaign
? assessed and specified the resources required for the media options, creative and production services for the campaign
? provided justification for the resources allocated to each component of the campaign to ensure they were not only sufficient, but were able to achieve the campaign objectives
? ensured that the budget met the requirements of the advertising brief.
Feedback sheet assessment task 2
Learner’s name
Learner’s ID number
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Assessment site
Assessment date/s Time/s
Assessment task Assessment Task 2: Prepare the advertising budget
Method of assessment Written report and presentation
Task: Development and presentation of the campaign budget.
The learner: Satisfactory (?)
Yes No
1 assessed and specified the research resource requirements for the campaign
2 assessed and specified the resources required for the media options, creative and production services for the campaign
3 provided justification for the resources allocated to each component of the campaign to ensure they were not only sufficient, but were able to achieve the campaign objectives
4 ensured that the budget met the requirements of the advertising brief
5 completed the assessment in the format and within the timeframe agreed with the assessor.
Comments/feedback to the learner
Outcome: Satisfactory Not yet satisfactory
Assessor’s name:
Assessor’s signature:
Assessment Task 3: Develop an advertising schedule
Submission details
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Learner’s name Phone no.
Learner’s ID number
Assessor’s name Phone no.
Assessment site
Assessment date/s Time/s
Further details
Learner’s declaration I declare that the work submitted for this assessment is my own work.
Learner’s signature
Date
The assessment task is due on the date specified by your assessor. Your assessor must approve any variations to this arrangement in writing.
Overview
This task forms part of your assessment for BSBADV602 Prepare an advertising campaign.
Having completed the advertising budget for this campaign, you now need to prepare an advertising schedule for the campaign based on the campaign objectives and budget.
Your task
Based on the case study provided (or an organisation which you agree on with your assessor), you will develop an advertising campaign for your client. You may conduct any research necessary to complete this task, but if you provide any references (for example to statistical data), please provide a link to the reference for verification by your assessor.
Note: This assessment task is the third of three assessment tasks, in which you will define campaign objectives, prepare an advertising budget and develop the schedule for the proposed advertising activities as part of a total, integrated project.
Complete the steps outlined below.
Steps
1. Add the following sections to the campaign brief you have been working on for your previous assessment tasks:
a. a section titled ‘Schedule’, which will:
i. provide an overview of how the schedule will work
ii. confirm the length of the campaign, from initial research (which you outlined in Assessment Task 1)
iii. provide details on the service providers you will be using for this campaign, including how you determined their suitability for this campaign (based on value for money, legal requirements, etc.) and at which stages of the campaign they will be needed for
iv. produce an advertising schedule using Excel or appropriate software, including: details on research components, creative, media and production requirements; milestones for monitoring progress against budget and scheduling requirements; and a key in the schedule to explain what each of the elements are
v. overview the advertising objectives and targets, including how and at what point in the scheduling these will be measured for effectiveness, and what steps will be taken if objectives are not met at any of the milestones.
b. a conclusion, with final notes
c. any additions to the references section.
2. Produce a presentation to be delivered to ‘the client’ (your assessor, or other approved person) outlining the entire advertising campaign you have developed over the three assessment tasks.
3. Gather feedback from the client and make any changes to the final presentation or advertising brief as needed.
4. Hand in the updated presentation with your advertising brief as part of your assessment.
Evidence requirements
You must:
? conduct a presentation with the final campaign details
? submit the campaign brief after updates based on the client’s feedback
? submit all documentation in the format and within the timeframe agreed with
your assessor.
Your assessor will be looking for evidence that you:
? confirmed the campaign length and timing based on the details from the advertising brief
? identified service providers with the appropriate expertise and negotiated their costs and availability
? selected the appropriate service providers, based on merit and value for money
? ensured that the selection of service providers met legal and ethical requirements
? allowed appropriate time in the schedule to meet creative, media and production requirements and timeframes to ensure the advertising objectives were met.
? set milestones in the schedule to monitor the progress and expenditure against budget and to evaluate campaign effectiveness.
Feedback sheet assessment task 3
Learner’s name
Learner’s ID number
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Assessment site
Assessment date/s Time/s
Assessment task Assessment Task 3: Develop the advertising schedule
Method of assessment Written report and oral presentation
Task: Complete the advertising schedule, make an oral presentation and use feedback to finalise the campaign brief.
The learner: Satisfactory (?)
Yes No
1 confirmed the campaign length and timing based on the details from the advertising brief
2 identified service providers with the appropriate expertise and negotiated their costs and availability
3 selected the appropriate service providers, based on merit and value for money
4 ensured that the selection of service providers met legal and ethical requirements
5 allowed appropriate time in the schedule to meet creative, media and production requirements and timeframes to ensure the advertising objectives were met.
6 set milestones in the schedule to monitor the progress and expenditure against budget and to evaluate campaign effectiveness.
7 completed the assessment in the format and within the timeframe agreed with the assessor.
Comments/feedback to the learner
Outcome: Satisfactory Not yet satisfactory
Assessor’s name:
Assessor’s signature:
Assessment Record Summary
Learner’s name
Learner’s ID number
Qualification code and title
Unit code and title BSBADV602 Develop an advertising campaign
Assessment tasks Assessment results (?)
Assessment Task 1: Define campaign objectives Satisfactory Not yet satisfactory
Assessment Task 2: Prepare the advertising budget Satisfactory Not yet satisfactory
Assessment Task 3: Develop an advertising schedule Satisfactory Not yet satisfactory
Overall assessment result (?) Competent Not yet competent
Feedback to the learner:
Feedback from the learner
Assessor’s name
Assessor’s signature
Date
Learner’s statement (learner must sign):
I have received feedback about the assessments and agree that the record above is a true reflection of the tasks performed.
Learner’s signature
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