Tax Articles

You may be subject to the General Interest Charge (GIC) if you have unpaid tax liabilities, including late or unpaid taxes, charges, levies, or penalties. The GIC is calculated daily on a compounding basis, which increases the amount you owe over time. Instances when...

IAS (Instalment Activity Statement) is a reporting document used in Australia by businesses and individuals who pay income tax and other taxes in instalments.What taxes do you report in the IAS? Depending on your specific obligations and business structure, the IAS...

Income averaging is a concessionary tax treatment available in Australia for certain professionals whose income fluctuates significantly from year to year. This regime is designed to address the issue of inconsistent income levels, particularly in occupations where...

The Research and Development Tax Incentive (R&DTI) is a program offered in Australian tax laws that provides a tax offset to companies engaged in eligible R&D activities. Its primary goal is to encourage investments in research and development, fostering...

Work out if you need to lodge a TPAR Some businesses and government entities need to lodge a Taxable payments annual report (TPAR). You lodge a TPAR for payments made to contractors for services. Some government entities need to report grants paid to people or...

What are PAYG instalments? When your earnings from business and investments reach a specific threshold, you are required to pay your income tax in smaller installments known as PAYG (Pay as You Go) instalments. The purpose of PAYG instalments is to prevent you from...

Penalty unit amount The penalty unit system is a method used to determine the monetary value of penalties imposed for various infringements. It establishes a standardized unit that corresponds to a specific dollar amount. The penalty unit system ensures consistency...

In Australia, gifts are not classed as income, therefore there is no liability to pay income tax on a gift. Australian tax laws define a gift based on specific criteria: Transfer of money or property: A gift involves the voluntary transfer of money or property from...

To determine if you need to lodge a tax return, it is essential to consider various factors related to your income, residency status, deductions, and specific financial situations. Conditions that necessitate tax return lodgment include the following: Tax Withheld: If...

PAYG Withholding is a system where you, as a business owner, must withhold a certain amount from payments made to your workers, including employees, company directors, office holders, and contractors.  You then remit these withheld amounts to the tax authorities to...

2023-24 Individual Tax Return Lodgement due Dates  15 May 2025 Individuals and partnerships that engage the services of a tax agent have until 15 May 2025 to lodge their 2023-24 tax returns.  Taxpayers who lodge their tax returns by 5 June 2025 and make any...

What is the tax free threshold in Australia? The tax free threshold is the first $18,200 of income earned in an income year, which is exempt from tax. If you are an Australian resident for tax purposes, you are eligible to claim the tax free threshold. If you are not...

Why amend your tax return? There are multiple reasons why you may need to amend your tax return: You’ve made a mistake You need to include additional information You’ve forgotten to include information You’ve experienced a change in circumstance after lodging You need...

This article is general information only and does not provide advice to address your personal circumstances. To make an informed decision you should contact an appropriately qualified professional.

What is a tax file number (TFN)? A Tax File Number (TFN) is a nine-digit number assigned to individuals to identify them in the Australian tax and superannuation systems. It is a permanent and unique number that remains the same throughout a person's life, even if...

What is an ETP? An ETP is a lump sum payment made: to an employee when their employment is terminated (Life benefit ETP); or to an employee’s estate because their employment has been terminated due to death (Death benefit ETP) ETPs include lump sum payments paid upon...

What is tax depreciation? Tax depreciation is the decline in value of a depreciating asset over time, for tax purposes. Assets, such as buildings, equipment, and vehicles, deteriorate or become obsolete over their useful lives. This decline in value can be claimed as...

Tax is an integral part of our society, and while it may seem complex and mundane at times, it harbours a treasure trove of fascinating facts. From historical curiosities to peculiarities in different countries, tax facts can shed light on the evolution and...

These income tax rates show the amount of tax payable in every dollar of taxable income for each income tax bracket for individual taxpayers in Australia.These rates apply to individuals who are Australian residents for tax purposes. These rates do not include the...