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Our comprehensive glossary simplifies the complex world of taxation. Get clear definitions and explanations of key terms to make informed financial decisions.
From understanding ABNs and GST to exploring capital gains and deductions, this glossary is your go-to resource for Australian tax terminology.
A unique 11-digit identifier issued by the Australian Taxation Office (ATO) to businesses for tax and identification purposes.
A nine-digit number issued by ASIC to registered companies in Australia for identification.
The government body responsible for administering tax laws and collecting taxes in Australia.
The total ordinary income earned by a business during a financial year, used for tax thresholds and concessions.
The total income a taxpayer earns during a financial year, including salary, wages, dividends, and business income, before deductions.
A supply where GST is not charged, but related purchases cannot claim GST credits, such as residential rent.
A tax offset reducing the tax payable by low-income earners, providing financial relief.
A method of depreciating multiple low-cost assets together for simplified tax reporting.
A tax on cars above a certain value threshold, designed to apply to luxury vehicles.
The percentage of tax applied to the last dollar of taxable income.
A levy on taxable income that funds the public healthcare system, typically 2% of taxable income.
A strategy where the costs of owning an investment property exceed the income it generates, resulting in a tax deduction.
Income that is not subject to tax, such as some government pensions or exempt foreign income.
Costs that cannot be claimed as tax deductions, such as personal living expenses or fines.
Tax rules that apply to individuals who are not residents of Australia for tax purposes, often with higher rates.
An individual or entity receiving payments subject to withholding tax, such as wages.
A system where businesses and individuals pay tax installments throughout the year to manage their tax liabilities.
A system where employers withhold tax from employee wages and remit it to the ATO.
A state-based tax on wages paid by employers when their total wages exceed a specified threshold.
Income primarily earned through personal skills or efforts, subject to specific tax rules.
A person or entity involved in agriculture, fishing, or forestry, eligible for specific tax concessions.
A tax rebate for individuals with private health insurance, reducing tax liability or premiums.
An adjustment for business expenses partly used for private purposes, such as home office utilities.
The requirement to maintain accurate financial records for tax purposes, generally for at least five years.
An offset where the unused portion is refunded to the taxpayer, such as the R&D Tax Incentive.
Costs associated with owning a rental property, such as repairs or interest, deductible for tax purposes.
The grossed-up value of fringe benefits exceeding $2,000, reported on an employee’s PAYG summary.
The progressive tax rates applying to Australian residents, differing from non-resident rates.
Different tax rules based on residency status, impacting income tax rates and obligations.
A deferral of tax obligations when disposing of an asset, typically as part of a restructure or small business relief.
A private superannuation fund managed by its members, who are also trustees.
A system offering small businesses simplified tax reporting and concessions.
A business with an aggregated turnover below a certain threshold, eligible for tax concessions.
An individual operating a business without a separate legal entity, personally liable for tax obligations.
The maximum amount individuals can contribute to superannuation each year without incurring additional tax.
The mandatory contributions employers must make to their employees' superannuation funds, calculated as a percentage of ordinary earnings.
Legal methods to reduce tax liability, distinct from tax evasion, which is illegal.
A unique number issued by the ATO to individuals and entities for identification and tax purposes.
A document issued for a sale, including details required for claiming GST credits.
A reduction in the amount of tax payable, such as the Low-Income Tax Offset or Private Health Insurance Rebate.
The status determining whether an individual or entity is considered a resident for Australian tax purposes.
The income on which tax is calculated, determined by subtracting deductions from assessable income.
A sale of goods or services subject to GST, excluding GST-free and input-taxed supplies.
A levy applied to high-income earners to aid in reducing the government’s budget deficit.
Rules limiting the tax-deductibility of interest for businesses with high levels of foreign debt.
The income level at which a tax rate, levy, or offset applies or changes.
An arrangement where a trustee holds property or income for the benefit of others, known as beneficiaries.
Use of a personal vehicle for work purposes, claimable as a deduction under specific methods.
Expenses incurred in earning income, such as uniforms, travel, or tools, which may be deductible.
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