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Part IVA

Part IVA What is Part IVA? Part IVA of the Income Tax Assessment Act of 1936 contains the income tax general anti-avoidance rule (GAAR). The GAAR operates alongside a number of other specific...

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Debt and Equity Rules

Debt and Equity Rules   There are broadly two major categories of funding available to a business: debt funding and equity funding.   From a basic legal point of view and in the context of...

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Everett Assignment

Everett Assignment   What is an assignment?An assignment involves an entity or individual (the assignor) transferring contractual rights and benefits to another entity or individual (the...

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Taxable Australian Property

Taxable Australian Property   A foreign resident of Australia for tax purposes is generally only subject to Australian tax on Australian sourced income. However, when it comes to capital gains...

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TOFA

TOFA TOFA (Taxation of Financial Arrangements) is a tax framework that focuses on taxing the gains and losses from financial transactions based on their actual economic impact, rather than just...

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NANE Income

NANE Income   Non assessable non exempt income (NANE) refers to specific types of income that are defined by tax laws or other Commonwealth legislation in Australia as being neither subject to...

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Exempt Income

Exempt Income

What is exempt income?Exempt income means any amount of ordinary income or statutory income that is not subject to taxation due to specific provisions in the Income Tax Assessment Acts (Acts) or...

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Contractor vs Employee

Contractor vs Employee   An employee is an individual who works under the supervision of an employer as a representative of their business receiving in return wages or other remuneration. While...

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Personal Services Income (PSI)

Personal Services Income (PSI)   The Personal Services Income (PSI) rules are designed to prevent persons who derive income from their personal services from “splitting” that income with other persons and therefore minimising the overall tax payable. The PSI...

General Interest Charge (GIC)

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

IAS

IAS   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...

Income Averaging

Income Averaging   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...

TPAR

TPAR   Some businesses need to lodge a Taxable payments annual report (TPAR) for payments made to contractors for services.  Payments you need to report Report payments made to contractors or subcontractors for the following services: building and construction...

PAYG Instalments

PAYG Instalments   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...

Tax Penalties

Tax Penalties 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...

Does Australia Have a Gift Tax?

Does Australia Have a Gift Tax?   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...

PAYG Withholding

PAYG Withholding   What is PAYG Withholding?PAYG Withholding is a system where businesses must withhold a certain amount of tax from income payments made to employees, company directors, office holders, and contractors. The withheld amounts are then remitted to...

Tax Lodgement Dates

Tax Lodgement Dates 2024-25 Individual Tax Return Lodgement due Dates   15 May 2026 Individuals and partnerships that engage the services of a tax agent have until 15 May 2026 to lodge their 2024-25 tax returns. Taxpayers who lodge their tax returns by 5 June 2026 and...

Tax Free Threshold

Tax Free Threshold   What is the tax free threshold in Australia?The tax free threshold for the 2024 & 2025 financial years is the first $18,200 of income earned in an income year, If you are an Australian resident for tax purposes, you are eligible to claim the...

Amend a Tax Return

Amend a Tax Return 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...

Medicare Levy & Surcharge

  See our TAX CALCULATOR to calculate Medicare Levy & Medicare Levy Surcharge.This article is general information only and does not provide advice to address your personal circumstances. To make an informed decision you should...

Tax File Number (TFN)

Tax File Number (TFN)   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...

Employment Termination Payment (ETP)

Employment Termination Payment (ETP)   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)...

Tax Depreciation

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...

Interesting Tax Facts

Interesting Tax Facts   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...

Individual Income Tax Rates

Income Tax Rates  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. See our 2024 & 2025 TAX CALCULATOR to calculate resident income tax / foreign resident...

STSL Tax

STSL   The Australian Government provides a range of Study Training and Support Loans (STSL) that people can use to finance their higher education, trade apprenticeships, and other training programs. These loans operate on an income contingent basis, where...