Reference material
Reference material is intended to help you get the most out of our statistics.
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Definitions and calculations
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Entity size
In Taxation statistics, an entity is defined as an individual, a company, a fund, a self-managed fund, a partnership or a trust. The entity’s size, based on total business income, is shown in the table below.
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:
Calculating net tax
Throughout the publication, '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.
A taxable entity is one whose net tax is more than $0. A non-taxable entity is one whose net tax is $0.
Find out about
Individual net tax calculation
These items are labels in the individual return form.
Taxable income or loss
|
Total income or loss
minus
Total deductions
minus
Tax losses of earlier income years
|
Tax on taxable income
|
Taxable income or loss
multiplied by
Individual marginal tax rates
|
Net tax
|
Tax on taxable income
plus
Extra income tax
minus
Total non-refundable tax offsets
plus
Medicare levy
plus
Medicare levy surcharge
plus
Temporary Budget repair levy
minus
Remaining foreign income tax offset
|
In this table:
- Extra income tax is any additional tax that you are required to pay, for example, 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 is a non-refundable tax offset. It can only be applied to reduce a liability to nil. It can’t result in a refund.
Company net tax calculation
These items are labels in the company return form.
Total profit or loss
|
Total income (item S6)
minus
Total expenses (item 6Q)
|
Taxable income
|
Total profit or loss (item 6T)
plus or minus
Reconciliation items (item 7)
|
Gross tax
|
Taxable income (calculation statement: item A)
multiplied by
Relevant company tax rate
plus
R&D recoupment tax (calculation statement: item M)
|
Net tax
|
Gross tax (calculation statement: item B)
minus
Non-refundable tax offsets
minus
Franking deficit tax offset (calculation statement: items C, D and F)
|
Super fund net tax calculation
These items are labels in the Fund tax return and Self-managed superannuation fund annual return respectively.
Taxable income or loss
|
Total assessable income (item 10V/11V)
minus
Total deductions (item 11N/12N)
|
Gross tax
|
Taxable income or loss (item 11O/12O)
multiplied by
Fund type specific tax rate
plus
Tax on no-TFN quoted contributions (item 12J/13J)
|
Net tax
|
Gross tax (item 12B/13B)
minus
Non-refundable non-carry forward tax offsets (item 12C/13C)
|
Estimating tax on net capital gains
In Taxation statistics, the tax on net capital gains is an estimate of the tax required to be paid, based on an average tax rate approach.
Average tax rate
|
Net tax
divided by
Taxable income
|
Estimated tax on net capital gains
|
Average tax rate
multiplied by
Net capital gain
|
Estimating business net tax
In Taxation statistics, 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.
Proportion of taxable income sourced from net business income
|
Net income or loss from business (sum of items 15B and 15C)
divided by
Taxable income (Taxable income or loss label on page 4 of the tax return)
|
Estimated business net tax
|
Proportion of taxable income sourced from net business income
multiplied by
Net tax
|
In this table:
Calculating net GST
Net GST
|
Gross GST payable
plus
Deferred GST payments on imports
minus
Input tax credits
|
In this table, the net amount of GST on the activity statement can also be affected by increasing and decreasing adjustments.