Task C4.1 Tax types

Step 1 of 3
Complete the following summary of business taxes. Select a description and tax features from the lists below and match them to each tax as appropriate (you can copy-and-paste to enter your answers).

Description of taxes:

Tax levied on the total of wages paid to employees
Tax imposed on taxable income of companies
Tax imposed on some goods imported into Australia
Tax levied on the gain made when disposing or selling a CGT asset
Tax payable on a non-salary benefit directed to an employee
Broad based tax imposed on the supply of most goods and services consumed in Australia
Commodity based tax levied on production of specific goods often at a high rate

Features of taxes:

Rates of tax and exemption levels vary from state to state
Imposed at a fixed rate regardless of the income level
50% discount on this tax not available to companies
Paid by the business not the employee who benefits
Levied at a rate of 10%
Typically levied on petroleum alcohol and tobacco
Generally paid in instalments throughout the year
Imposed by state or territory governments
Collected by business which sends the net amount to the ATO
Administered by the Australian Customs and Border Protection Service
Calculated and paid as income tax


Income tax paid by companies (company tax)
Description of the tax:

Feature 1 of the tax:

Feature 2 of the tax:


Fringe benefits tax (FBT)
Description of the tax:

Feature of the tax:


Capital gains tax (CGT)
Description of the tax:

Feature 1 of the tax:

Feature 2 of the tax:


Excise duties
Description of the tax:

Feature of the tax:


Payroll tax
Description of the tax:

Feature 1 of the tax:

Feature 2 of the tax:


Goods and services tax (GST)
Description of the tax:

Feature 1 of the tax:

Feature 2 of the tax:


Import duty
Description of the tax:

Feature of the tax:
  • Fact 23

    Social activities among ATO employees in the 1960s included 'Miss Taxation' contests which were part of state-wide fundraising for major charities.

Capital gains tax (CGT)

A tax on the profit made when selling or disposing of an asset such as investment properties, shares and collectables. The net capital gain amount, or the discounted capital gain amount in certain circumstances where a discount applies, is added to assessable income and income tax is then calculated on the taxable income. A person’s main residence (their home) is generally exempt and motor vehicles are exempt from CGT.

read more glossary terms