Income and income tax

Question 1 of 9

Income tax

Individuals may be liable for a range of personal taxes. These taxes can be imposed on income earned, purchasing goods or services, selling CGT assets and other transactions.

You have a legal responsibility to know what taxes you are liable to pay. You can't claim, 'I didn't know I had to pay tax on it'. The Australian income tax system relies on taxpayers self-assessing, which means you are responsible for working out how much you need to declare and can claim on your tax return. You provide this information to the Australian Taxation Office (ATO) which then calculates how much income tax you must pay.

Details of how income tax works are described in other topics in this module.

  • Fact 20

    In the 1950s, some ATO personnel informally referred to the tax laws as Pig's Stew because they collected Payroll tax, Income tax, Gift duty, Sales tax, Stevedoring industry charge, Tobacco charge, Estate duty and Wool tax.

Contributions

Money that an individual or employer puts into a complying super fund.

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