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  • Reference material

    Reference material is intended to help you get the most out of our statistics.

    On this page:

    Definitions and calculations

    On this page:

    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.

      Last modified: 24 Jun 2019QC 58065