When we say:

  • Business activity statement (BAS), we mean the form you use to claim GST credits and let us know how much tax you need to pay, including GST and PAYG.
  • BAS agent, we mean someone who is registered with the Tax Practitioners Board and provides BAS services like helping you prepare and lodge your BAS.
  • Capital gains tax (CGT), we mean the tax you pay on a capital gain. The most common way to make a capital gain (or capital loss) is by selling assets, such as motor vehicles, manufacturing machinery, office equipment, or land and buildings. If you buy or sell these types of assets, you will need to keep records of your transactions.
  • Cash basis of accounting, we mean the most common way small businesses do their accounting. You can learn more about GST and accounting for it at
  • Contractor, we mean someone who runs their own business and provides services to your business – they are different to an employee. It is important you make the correct decision about whether a worker is an employee or contractor. You will have different tax and super responsibilities depending on whether your worker is an employee or contractor. You can use the Employee/contractor decision tool to find out whether your worker is an employee or contractor for tax and super purposes at
  • Fringe benefits, we mean the goods or services (not money) you give to your employees or their families. They include things like:
    • the private use of a work car or other work equipment – for example, a computer or phone
    • paying private health insurance
    • cheap loans, entertainment or goods.
  • If you give your employees fringe benefits, you must register for fringe benefits tax (FBT). You should then tell us you have made these payments using a FBT return. You send your FBT return to us after the end of the FBT year, which runs from 1 April to 31 March each year.
  • Good and services tax (GST), we mean a tax of 10% on most goods and services sold in Australia.
  • GST credits, we mean credits that if you are registered for GST, you can claim for any GST included in the price you pay for things in your business. They are also called input tax credits and you can claim them in your business activity statement (BAS).
  • Superannuation, which is also called super, we mean money set aside over your lifetime to provide for your retirement. For most people, super begins when you start work and your employer starts paying super for you. If you are an employer, it is likely you will have super responsibilities to your workers.
  • Tax invoice, we mean a document issued by a supplier that contains enough information for the following to be clearly identified:
    • the supplier’s identity
    • the supplier’s Australian business number (ABN)
    • the date of the tax invoice
    • a brief description of the items sold, including the quantity and the price it was sold at
    • the GST amount (or a statement which says ‘The total price includes GST’)
    • the purchaser’s identity or ABN (if the taxable sale is $1000 or more)
    • the extent to which each supply referred to is a taxable supply
    • that the document is intended to be a tax invoice.
  • Transactions, we mean the flows of money coming in to your business and money going out of your business.
    Last modified: 08 Jul 2013QC 35621