AU1.3.1ÌýÌýÌýÌý Income tax
Tax payable is calculated as the product of taxable income multiplied by the applicable tax rate, less tax offsets. Taxable income is the difference between assessable income and allowable deductions.
An Australian taxpayer does not generally pay different rates of tax on different types of income and is generally not required to quarantine certain types of deductions for use against only certain types of income. An individual Australian taxpayer's tax liability is calculated on the same basis regardless of whether or not they are married (or in a de facto relationship).
Assessable income
Assessable income includes both income according to ordinary concepts ('ordinary income'), and statutory income. Statutory income is amounts that are not ordinary income but are included in assessable income by specific statutory provisions. For Australian tax residents, assessable income includes ordinary income and statutory income from all worldwide sources, subject to international tax treaties, unless the individual is a 'temporary resident' under Australian tax law (see below).
Income from personal services, income from property and income from trading activities are examples of income according
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Web page updated on 17 Mar 2025 13:22