Tax Glossary

Annual statement of benefit (Medical)
Statement of all fees less benefits received from all Medicare & Health Providers.

Bank reconciliation
Bank reconciliation is the process of comparing and matching figures from the accounting records against those shown on a bank statement.

Business Activity Statements
A Business Activity Statement (BAS) is the single form that you fill in and return to the ATO to report your obligations and entitlements on:

• GST
• Pay As You Go (PAYG) amounts withheld from payments
• PAYG instalments
• Fringe benefits tax instalments
• Wine equalisation tax
• Luxury car tax

Capital Gains on sales of Assets
A capital gain is a profit that results from investments into a capital asset, such as shares or real estate, which exceeds the purchase price. It is the difference between a higher selling price and a lower purchase price, resulting in a capital gain for the investor.

Creditors aged trial balance
A report on each creditors current balance and the aging through current, 30, 60 and 90 days.

Debtors aged trial balance
The Debtors Aged Trial Balance is used to report on the balance of the account and the aging through current, 30. 60 and 90 days.

Deduction
A deductible expense.

Dependent
A person who qualifies to be claimed as a dependent for tax purposes.

Depreciation of Assets
The value of your business assets decreases over time. This decrease in value is called "depreciation." Depreciation is defined as the change in value of an asset over the useful life of the asset. Assets depreciate for two reasons: wear and tear, obsolescence.

Dividend advices
Notification of any dividends received from investments.

Family Tax Benefit
FTB is a payment you can receive to help with the cost of raising your dependent children.

Family Tax Benefit Part A
Helps families with the cost of raising children

Family Tax Benefit Part B
Helps families with one main income earner, including sole parent families

Gifts & Donation
Any amount above $2 given by your business to any registered tax deductible organisation.

Helping small business
Aiding a small business by offering services e.g. accounting or taxation advice.

Mortgage Assistance Relief Scheme
The Mortgage Assistance Scheme provides short-term help for people experiencing temporary difficulties with their home loan repayments because of an unavoidable change in circumstances.

Motor vehicle log books
A useful guide for assisting all motor vehicle owner/drivers in keeping a permanent record of the day to day running costs of the vehicle.

MYOB
Accounting software - Mind Your Own Business.

Newstart Allowance
If you are unemployed, Newstart Allowance provides financial support while you are looking for work.

Rent assistance
Rent Assistance is a non-taxable income supplement payment added on to the pension, allowance or benefit of eligible income support customers who rent in the private rental market.

Retail business
Any business that sells goods to the general public.

Self-employed
A person who individually decides when and where to work and pays his or her own expenses.

Small Business
You are a small business if you are an individual, partnership, company or trust that:
* carries on a business for all or part of the income year, and
* has less than $2 million aggregated turnover.

Small Business Entity
You are a small business if you are an individual, partnership, company or trust that:

• carries on a business for all or part of the income year, and
• has less than $2 million aggregated turnover.

Split interest income
holding a joint account with a spouse

Start up business
Any new business venture

Starting in business
To launch  a new business.

Stock take listing
A complete itemised list of all your stock current at the end of a financial year.

Tax
Charge imposed by a governmental body on personal income, corporate income, estates, gifts, or other sources to obtain revenue.

Taxable income
Assessable Income minus deductions.

Taxation
Charge imposed by a governmental body on personal income, corporate income, estates, gifts, or other sources to obtain revenue.

Working from home
Where your primary business address is your residential address.

Work at home businesses
Businesses that operate from the owners residential address.