Show download pdf controls
  • Reference material

    This reference material is designed to help you get the most out of our statistics.

    Find out about:

    Definitions and calculations

    Find out about:

    Entity size

    For the purposes of our yearly Taxation statistics, an Entity is an individual, a company, a fund, a self-managed fund, a partnership or a trust.

    An entity’s size is determined by referring to Table 21 as follows.

    Table 21: Determine entity size

    Entity size

    Total business income

    Loss

    less than $0

    Nil

    equal to $0

    Micro

    $1 to less than $2 million

    Small

    $2 million to less than $10 million

    Medium

    $10 million to less than $100 million

    Large

    $100 million to less than $250 million

    Very large

    $250 million or more

    Total business income is the amount:

    • an individual showed under item P8 Business income and expenses at the total business income label of the 2016 individual tax return
    • a company showed in the information statement under the income item at the total income label S of the 2016 company tax return
    • a fund showed at item 10 under the income item at the total assessable income label V of the 2016 fund income tax return
    • a self-managed super fund showed at item 11 under the income item at the total assessable income label V of the 2016 SMSF annual return
    • a partnership or trust showed at item 5 under the income item at the total business income label of the 2016 partnership or trust tax return.

    Calculating net tax

    Throughout these taxation statistics, 'net tax' is essentially the amount of tax owed for the income year, before refundable credits are taken into consideration. It does not generally equate to the amount of tax payable or refundable as shown on a notice of assessment.

    Items in brackets below refer to tax return labels.

    A taxable entity is one where net tax is more than $0, whereas non-taxable entities are those with net tax less than or equal to $0.

    Individual net tax

    Individual net tax is calculated as:

     

    Total income or loss

    less

    Total deductions

    less

    Tax losses of earlier income years

    gives

    Taxable income or loss

    apply

    Individual marginal tax rates

    gives

    Tax on taxable income

    add

    Extra income tax

    subtract

    Total non-refundable tax offsets

    add

    Medicare levy

    add

    Medicare levy surcharge

    add

    Temporary budget repair levy

    subtract

    Remaining foreign income tax offset

    gives

    Net tax

    Notes:Extra income tax: an example of this is the amount added to tax on taxable income when a primary producer’s average income exceeds taxable income in a particular year.Remaining foreign income tax offset: this is a non-refundable tax offset so can only be applied to reduce any liability to nil (that is, cannot result in a refund).
    Company net tax

    Company net tax is calculated as:

     

    Total income (item 6S)

    less

    Total expenses (item 6Q)

    gives

    Total profit or loss (item 6T)

    add or subtract

    Reconciliation items (item 7)

    gives

    Taxable income (calculation statement – item A)

    apply

    Relevant company tax rate

    add

    R&D recoupment tax (calculation statement – item M)

    gives

    Gross tax (calculation statement – item B)

    subtract

    Non-refundable tax offsets and Franking deficit tax offset

     

    (calculation statement – items C, D and F)

    gives

    Net tax

    Super fund net tax

    Super fund net tax (for APRA and SMSFs respectively) is calculated as:

     

    Total assessable income (item 10V/11V)

    less

    Total deductions (item 11N/12N)

    gives

    Taxable income or loss (item 11O/12O)

    apply

    Fund type specific tax rate

    add

    Tax on no-TFN quoted contributions (item 12J/13J)

    gives

    Gross tax (item 12B/13B)

    subtract

    Non-refundable non-carry forward tax offsets (item 12C/13C)

    gives

    Net tax

    Estimating tax on net capital gains

    For taxation statistics purposes, the tax on net capital gains is an estimate of the tax required to be paid, based on using an average tax rate approach.

    Tax on net capital gains is estimated as:

     

    Net tax

    divided by

    Taxable income

    gives

    Average tax rate

    multiplied by

    Net capital gain

    gives

    Estimated tax on net capital gains

    Estimating business net tax

    For taxation statistics purposes, business net tax is an estimate of the amount of net tax attributable to net business income. Business net tax is only calculated for taxable individuals with net business income and taxable income.

    Business net tax is estimated as:

     

    Net income or loss from business (sum of items 15B and 15C)

    divided by

    Taxable income (label $ under the Losses section)

    gives

    Proportion of taxable income sourced from net business income

    multiplied by

    Net tax

    gives

    Estimated business net tax

    Note: Where the proportion calculated above is greater than 1, it is changed to 1.

    Calculating net GST

    Net GST is calculated as:

     

    Gross GST payable

    add

    Deferred GST payments on imports

    less

    Input tax credits

    gives

    Net GST

    Note: The net amount of GST on the activity statement can also be affected by increasing and decreasing adjustments.

    Tax return forms and other relevant publications

    All the tax return forms, associated instructions and guides and other publications referred to in this Taxation statistics report are listed here.

    Return forms and schedules

    Instructions and other guides

    Activity statements and GST returns

    Other publications

    Data cut-off dates and abbreviations

    Data cut-off dates

    The data in our tables includes data processed up to 31 October of the following year. For example, data for the 2015–16 income year includes data processed up to 31 October 2017.

    The statistics are sourced from annual tax returns (including amended returns), associated schedules (such as the capital gains tax schedule) and activity statements that were processed up to 31 October 2017.

    Statistics in the detailed tables have been updated for the 2013–14 to 2015–16 income years and 2014–15 to 2016–17 financial and FBT years, to include returns processed up to 31 October 2017. These statistics are not necessarily complete and will continue to change as more tax returns and schedules are lodged and processed.

    Data for the 2012–13 and earlier income years and 2013–14 and earlier financial and FBT years, have not been updated in this edition.

    Abbreviations

    Table 22: Abbreviations used in Taxation statistics

    Abbreviation

    Full title

    APRA

    Australian Prudential Regulation Authority

    ATO

    Australian Taxation Office

    CGT

    Capital gains tax

    FBT

    Fringe benefits tax

    GST

    Goods and services tax

    LCT

    Luxury car tax

    MCS

    Member contributions statement

    PRRT

    Petroleum resource rent tax

    SMSF

    Self-managed super fund

    WET

    Wine equalisation tax

    Table 23: Abbreviations used within tables

    Abbreviation

    Description

    no.

    number

    $m

    dollars are shown in millions

    na

    not applicable or not available

    <1

    rounded to zero but not zero

      Last modified: 03 Jul 2018QC 54740