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Finance & tax glossary

The terms you actually run into as a sole trader, freelancer or small business — explained simply, with no jargon. Fin keeps each one short and useful.

GST & BAS

GST (Goods and Services Tax)

Australia’s flat 10% tax on most goods and services.

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BAS (Business Activity Statement)

The form GST-registered businesses use to report GST and PAYG.

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PAYG (Pay As You Go)

Paying tax through the year rather than in one lump.

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Income tax

Marginal tax rate

The tax rate on your next dollar of income.

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Tax-free threshold

The first $18,200 of income you can earn tax-free.

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Medicare levy

A 2% levy on most taxable income that funds public health.

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CGT discount (50%)

Hold an asset over 12 months and only half the gain is taxed.

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Franking credits

A credit for company tax already paid on your dividends.

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Deductions

Depreciation (decline in value)

Claiming the cost of a big asset gradually over its life.

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Instant asset write-off

Immediately deduct an eligible asset instead of depreciating it.

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Logbook method (car expenses)

Claim your car’s real business-use share of running costs.

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Super & study

Superannuation guarantee (SG)

The compulsory super employers pay on top of wages.

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Salary sacrifice

Redirecting pre-tax salary into super or a benefit.

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Division 293 tax

An extra 15% super-contributions tax for high earners.

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HECS-HELP (student loan)

A government study loan you repay through the tax system.

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Business basics

ABN (Australian Business Number)

The 11-digit number that identifies your business.

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TFN (Tax File Number)

Your personal reference number in the tax system.

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Sole trader

The simplest business structure — you and the business are one.

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Want to run the numbers? Try the free tax calculators, or read the plain-English guides.

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