Australian Finance & Tax Glossary

An 11-digit identifier issued to entities operating a business in Australia. Required for invoicing GST, claiming business deductions, and many B2B transactions.

The Commonwealth government agency administering Australia's tax and superannuation systems. Sets and publishes tax rates, thresholds, and rulings used in most of these calculators.

A quarterly (or monthly) form reporting GST, PAYG withholding, PAYG instalments, and other obligations to the ATO. Required for any GST-registered business.

Tax on the profit when you sell an asset like shares, property or crypto. Individuals get a 50% discount for assets held over 12 months. Your main residence is generally exempt.

A pre-tax contribution to super (employer SG + salary sacrifice + personal deductible). Taxed at 15% in the fund. Annual cap $30,000 for FY 2025-26.

The only legal way for departing temporary visa holders to access their Australian super. Working Holiday Makers pay 65% withholding; other visas pay 35% on taxed element.

An organisation registered with the ATO to receive tax-deductible donations. Gifts of $2+ to DGRs are claimable on your tax return.

Extra 15% tax on concessional contributions for people whose income + concessional contributions exceeds $250,000. Effectively makes the contribution tax 30% instead of 15%.

Section 109 ITAA 1936 rules that treat unfranked loans from private companies to shareholders/associates as deemed dividends, unless a complying loan agreement is in place.

Total household debt divided by combined gross annual income. APRA flags DTI over 6 as 'high risk' — used by banks in loan applications.

Tax of 47% paid by employers on non-cash benefits given to employees (cars, expense payments, entertainment). EVs and PHEVs (until April 2025) under LCT threshold are FBT-exempt.

Someone purchasing their first home in Australia. Eligible for FHOG grants, stamp duty concessions, FHSSS, and the First Home Guarantee scheme.

State-government cash grant for first home buyers, typically for new builds only. Ranges from $7,000 (ACT) to $30,000 (QLD, TAS).

Allows first home buyers to save up to $50,000 inside super at the 15% concessional rate, then withdraw it (taxed at marginal rate minus 30% offset) for a home deposit.

A movement and goal to accumulate enough invested capital that 4% annual withdrawal covers living expenses indefinitely. Standard FIRE number = 25× annual spending.

A non-refundable tax offset for foreign tax already paid on overseas income that's also taxable in Australia. Prevents double taxation for Australian residents earning offshore.

Tax credits attached to fully franked dividends from Australian companies, representing the 30% (or 25% BRE) company tax already paid. Used to offset personal income tax via dividend imputation.

A 10% value-added tax on most goods and services sold in Australia. Some items (fresh food, healthcare, education) are GST-free. Mandatory registration above $75k turnover.

Australia's income-contingent student loan scheme (Higher Education Contribution Scheme / Higher Education Loan Program). Compulsory repayments start at $67,000 income. Indexed to CPI annually.

A Melbourne Institute benchmark of typical household living costs. Banks use HEM as a MINIMUM expense figure in loan serviceability assessments, regardless of declared spending.

Australia's primary income tax legislation, split between ITAA 1936 (older provisions) and ITAA 1997 (modernised rewrite). Section citations like 's 118-110' refer to specific provisions.

Centrelink income-support payment for people of working age looking for work or unable to work short-term. Single base rate $795.20/fortnight (March 2026).

33% tax on cars above the LCT threshold ($91,387 for fuel-efficient vehicles 2024-25, $76,950 for others). Important for novated lease FBT exemption eligibility.

Tax offset of up to $700 for low-income earners. Full offset under $37,500 income, phases out completely by $66,667. Automatically applied — no claim required.

Insurance the borrower pays to protect the LENDER if the borrower defaults. Required when loan-to-value ratio (LVR) exceeds 80%. Typical cost 1-5% of loan.

State-based statutory leave entitlement for long-serving employees. Qualifying periods range from 7 years (some) to 10-15 years; entitlements 6.5-13 weeks paid.

The loan amount divided by the property value, expressed as a percentage. Over 80% triggers LMI. Banks use LVR to assess risk; lower LVR = better rates available.

Per s 118-110 ITAA 1997, your principal home is generally exempt from CGT on sale. The 6-year rule (s 118-145) extends this when you rent your former home for up to 6 years.

Additional 1-1.5% tax on income above $101k singles / $202k families (FY 2025-26) if you don't hold adequate private hospital cover. Designed to encourage PHI.

After-tax contribution to super, not taxed in the fund. Annual cap $120,000 or $360,000 over 3 years (bring-forward). Cannot accept if Total Super Balance ≥ $1.9M.

When an investment property's rental income is less than its costs (interest + expenses + depreciation), creating a tax loss that offsets other income. Common Australian investment strategy.

10 minimum employment entitlements under the Fair Work Act 2009, including 38hr week, 4 weeks annual leave, paid public holidays, parental leave, redundancy pay.

A three-way arrangement (employee + employer + lease company) for funding a vehicle through pre-tax salary deductions. EVs under LCT threshold are FBT-exempt.

A transaction account linked to your mortgage where every dollar reduces the loan balance for interest calculation purposes. Equivalent to paying down the mortgage, but liquid.

Australia's withholding system for income tax. Employers withhold tax from each pay (PAYG withholding); business owners pay quarterly instalments (PAYG instalments).

Australian government payment for primary carers of newborns/adopted children. 22 weeks at minimum wage for FY 2025-26 (increasing to 26 weeks by 2027). Now includes 12% super.

The age you can access your super. From 1 July 2024, preservation age is 60 for everyone (was previously 55-59 for older birth cohorts). Earlier access only via specific hardship rules.

Income from your personal labour. Subject to specific rules (Part 2-42 ITAA 1997) that limit deductions and force super payments if you fail the 80% one-client test.

Additional Centrelink payment for renters paying above the rent threshold. 75% of rent above threshold, max $211.20/fn single. Paid on top of base income-support payments.

The compulsory employer super contribution rate. 12% from 1 July 2025 — the final legislated increase. Employers must pay SG quarterly on ordinary time earnings.

A super fund where the members are also the trustees. Up to 6 members. Generally cost-effective above $200k-$500k balance. Strict compliance obligations.

The redesigned tax cuts effective 1 July 2024: 19% rate dropped to 16%, 32.5% bracket abolished and merged into 30%, top 45% threshold lifted from $180k to $190k.

State-government transfer duty paid on property purchases. Rates and thresholds vary by state. First home buyer concessions and exemptions widely available.

The lifetime limit on super transferred to retirement (pension) phase, where earnings are tax-free. General cap $2.0M for FY 2025-26. Personal cap fixed at the date you start a pension.

A 9-digit unique identifier issued by the ATO to individuals and entities for tax administration. Provide to employers and banks to avoid 47% no-TFN withholding.

Insurance paying a lump sum if you can no longer work due to illness or injury. 'Own occupation' (your specific job) vs 'any occupation' (any reasonable job) definitions matter.

Pension you can draw from super while still working from preservation age (60). Used to top up income while salary-sacrificing more into super tax-effectively.

Visa subclass 417/462 holders. Taxed at 15% from $1 to $45,000 (no tax-free threshold). Pay 65% withholding on DASP when leaving Australia.