accruals or earnings basis: Method of accounting for income that takes into account money due but not yet paid to you. This generally arises when you have a legal right to demand payment, such as when you invoice a client for the services you have rendered.
adjusted taxable income: Your taxable income plus other amounts such as reportable fringe benefits, tax-free pensions or benefits, foreign income, reportable super contributions, losses from negative gearing financial investments minus child support payments.
allowable deduction: An expense you can deduct from your assessable income.
assessable income: Ordinary income and statutory income that’s liable to tax.
Australian Business Number (ABN): The number you quote whenever you conduct a business transaction. If you don’t quote this number, 49 per cent tax may be withheld from payments made to you.
business activity statement (BAS): A statement under the pay-as-you-go system that’s prepared at the end of each reporting period, disclosing certain income liable to tax and any GST collected.
business real property: A business premises such as a shop, office or factory that you use to derive your assessable income.
capital gains tax (CGT): A tax on gains you make on disposal of CGT assets such as shares, real estate and collectables you acquire on or after 20 September 1985.
capital in nature: Expenses that aren’t tax deductible because they don’t have a direct or relevant connection with deriving assessable income.