Glossary beginning with T

Amounts to be deducted from a tax bill, for example, franking credits and fuel tax credits.

When a person deliberately lies to the ATO to reduce their amount of tax payable by understating assessable income, overstating allowable deductions or incorrectly claiming tax credits and tax offsets. Tax evasion is against the law.

A unique number issued by the ATO to individuals and organisations to increase the efficiency in administering tax and other Australian Government systems, such as income support payments.

A form that helps an employer work out how much tax to withhold from payments made to employees.

A free service sponsored and administered by the ATO where trained and accredited volunteers from the community assist low-income taxpayers to complete their tax return.

A document generally issued by a supplier registered for GST. It shows the price of a sale, indicating whether it includes GST, and may show the amount of GST. It must show other information including the ABN of the supplier.

When a taxpayer legally minimises the amount of tax they have to pay.

An amount that may reduce the amount of income tax payable, dollar for dollar.

The amount of income tax required to be paid on a person's taxable income after applying any tax offsets. It does not include the Medicare levy.

The form that taxpayers complete and lodge annually with the ATO to report their income, tax withheld, allowable deductions and tax offsets.

Individuals who are Australian residents for taxation purposes pay no tax on the first $18,200 taxable income for the full financial year. This is called the tax-free threshold. They may claim the tax-free threshold from one employer only. Non-residents cannot claim the tax-free threshold.

Assessable income minus allowable deductions.

Any individual or entity required to pay tax.

The ATO client service charter, which sets out what a person can expect when dealing with the ATO. It lists a person's rights, obligations and what they can do if they are not satisfied.

A trust exists when a person or company (called a 'trustee') holds assets on behalf of others who are intended to benefit from the assets, or income from those assets. Those intended to benefit are called 'beneficiaries'.