GST, deductions and the accounting rules that shape how finance shows up in the books.
30 terms in this topic
An asset register is a structured record of the tangible and intangible assets a business owns, controls or leases, tracking each item's location, value, depreciation and disposal in one place.
Read definitionThe Australian Accounting Standards Board (AASB) is the government agency that writes the accounting standards Australian companies follow when preparing financial statements, including the rules for leases and depreciation.
Read definitionThe Australian Business Register (ABR) is the national register, run by the ATO, that records the identity details of every entity that holds an Australian business number.
Read definitionA balance sheet is a financial statement that shows a business's financial position at a specific date: what it owns (assets), what it owes (liabilities) and the owners' equity.
Read definitionA BEV is a battery electric vehicle: a car driven entirely by an electric motor and a rechargeable battery, with no petrol or diesel engine on board.
Read definitionA business activity statement (BAS) is the form a GST-registered business lodges with the ATO, usually quarterly, to report and pay GST, PAYG withholding and PAYG instalments.
Read definitionCapital allowances are the tax deductions you can claim for the decline in value of depreciating assets, such as plant and equipment, that you hold to produce assessable income.
Read definitionCapital gains tax (CGT) is the income tax you pay on the net profit from selling or disposing of an asset, added to your income rather than charged separately.
Read definitionA CPA is a certified practising accountant: a member of CPA Australia who has completed an accredited degree, the CPA Program and a period of supervised professional experience.
Read definitionDepreciation is the fall in an asset's value over time, spread across the years the asset is used so the cost can be claimed as a tax deduction.
Read definitionEarnings before interest and tax (EBIT) is a business's operating profit before financing costs and tax, showing what core operations earn regardless of debt levels or tax rates.
Read definitionEOFY means end of financial year: 30 June in Australia, along with the weeks before it when books are closed and the tax deadlines that follow.
Read definitionFixed assets are the long-term assets a business holds to use in its operations rather than to sell, providing economic benefits for more than one accounting period.
Read definitionFringe benefits tax (FBT) is a tax employers pay on non-cash benefits given to employees, such as a work car available for private use.
Read definitionThe general interest charge (GIC) is the interest the ATO adds, compounding daily, to any tax debt that stays unpaid after its due date.
Read definitionGoods and services tax (GST) is a broad-based 10% tax on most goods and services sold in Australia, which registered businesses collect on sales and pay to the ATO.
Read definitionGovernment grants are non-repayable payments from federal, state or local government to eligible businesses, not-for-profits or individuals to fund defined projects or outcomes under set program conditions.
Read definitionAn input tax credit is the GST a registered business can claim back on the price of goods and services it buys for business use.
Read definitionThe instant asset write-off is a tax concession that lets eligible businesses deduct the full cost of a depreciating asset in the year of first use, up to a threshold.
Read definitionLuxury car tax (LCT) is a tax on cars whose GST-inclusive value is above the LCT threshold, charged only on the amount over the line and built into the price.
Read definitionOff-balance-sheet (OBS) describes assets, liabilities or obligations a business is exposed to but does not record on its balance sheet, such as guarantees and some leases.
Read definitionPAYG means pay as you go: the ATO system for collecting income tax during the year, withheld from wages by an employer or paid in instalments by a business.
Read definitionA PHEV is a plug-in hybrid electric vehicle: a car with a petrol engine and a battery you charge from a socket, giving a limited electric-only range.
Read definitionA profit and loss statement (P&L) is the report that lists a business's revenue and expenses over a period and shows whether it made money or lost it.
Read definitionThe R&D tax incentive is a tax offset program, administered by AusIndustry and the ATO, that reduces the net cost of eligible experimental research and development for companies.
Read definitionSalary sacrifice is an agreement with your employer to receive less salary in return for benefits paid from pre-tax pay, such as extra super or a novated lease.
Read definitionStamp duty is a tax that state and territory governments charge on certain transactions and documents, most commonly the purchase of property and the transfer of a vehicle.
Read definitionA tax invoice is a document issued for a taxable sale, normally by the GST-registered seller, recording the sale and the GST payable so the buyer can claim a credit.
Read definitionTax-based leasing is an asset finance structure arranged so the lessor keeps tax ownership and claims depreciation, while the lessee uses the asset and deducts lease payments.
Read definitionTemporary full expensing is a time-limited tax concession that let eligible businesses deduct a qualifying asset's full cost in its first year of use instead of over its effective life.
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