In today's society most fields of employment use specific terms and definitions commonly known as jargon. People working within the field are quite comfortable with the terms, but what about the average person? Quite often they feel inadequate, isolated, and are self-conscious of the fact that they don't understand the terms. When a situation arises (such as tax time) when they must decipher and deal with these terms it is common for stress levels to increase.
At Tax Aid we believe that you are entitled to both know and understand the various terms we use, and endeavour to define them simply. We believe that doing this gives our clients a greater understanding and control of their financial management. We believe that this also lowers stress levels, improves confidence and comfort levels of our clients, and enhances the efficiency of our service to you. Our clients are always our most valuable assets, and we are committed to demonstrating this in our friendly and comprehensive service.
Assessable Income - Also known as taxable income. The amount of money earned throughout the financial year on which tax is payable.
BAS - Business Activity Statement. The method by which business pay their GST commitment to the government and lodge the information with the ATO.
Deduction - An amount of money resulting from the purchase of an item or an expense incurred in the field of employment that is subtracted from assessable income.
GST - Goods and Services Tax. A %-based tax payable on most goods and services of all consumers and providers.
Input Tax Credit - A refund of GST paid for business expenses.
Non-Commercial Loss - Any loss from small business activities with an annual turnover of less than $20 000. They are not deductible from taxable income but are deferred and offset against future profits.
PAYG Payment Summaries - Formerly known as Group Certificates. They show the amount of income earned throughout the financial year and how much tax has been deducted.
Rebate - Now referred to as Offsets. An amount of money subtracted from the tax already calculated.
Salary Packaging - a series of arrangements that allows employees to use some of their income prior to tax to pay for benefits thereby reducing the overall amount of tax payable and increasing the net value of income earned.
Tax File Number - A nine-digit figure used by the Australian Tax office to identify and process information supplied by individuals and businesses.
Tax Invoice - Dated receipts detailing goods purchased and/or services provided; they normally contain the name and details of the business. Must be produced in order to claim a tax deduction for amounts over the amount of $55.