What Does The Fiscal And Financial Year (FY) Mean?
In finance, FY means the financial year or fiscal year. They are the same thing but “fiscal year” is more commonly used outside of Australia.
What Is A Mortgage Offset Account?
If you’re a homeowner, first home buyer, or even an investor, consider talking to your bank about activating an “offset account”.
The Difference Between Cash And Accrual Accounting
While cash accounting might “make more sense” for a very small business or one that is just starting out, once the business starts to grow an accountant can help you take care of the rules under accrual accounting — and may even help you minimise your tax bill!
Earnings Defined And What Is The Difference Between Profit, Earnings And Revenue?
Earnings is another word for profit, but what makes it confusing is how people use it. Typically, revenue is the same thing as “sales” or the “top line”. They all appear at the top of the income statement.
What is Depreciation & Amortisation?
What is depreciation and amortisation? How is depreciation different to amortisation, and what does accelerated depreciation mean?
What is Capital Gains Tax (CGT)?
Capital Gains Tax or CGT is a tax that is paid when you sell an investment or asset for more than it cost to buy it.
Australian Personal Tax Rates Explained
Australian Marginal Tax Rates Explained. In Australia, more income tax is paid for every dollar you earn, less your allowable tax deduction.
Medicare Levy & Medicare Levy Surcharge Explained
Medicare Levy & Medicare Levy Surcharge Explained. To have access to a great public healthcare system, most Australian residents pay the Medicare Levy, which is 2% of taxable income.
What is negative gearing?
Negative gearing is a strategy used by people to grow the value of their investment while keeping their tax as low as possible. Investors use negative gearing because the interest repayments on loans are typically tax deductible against their personal income.
What is the ATO and what do they do?
The ATO is Australia’s Tax Office.
How does tax work in Australia?
The Australian tax system works by charging a higher tax rate for those who earn a higher income. It is a marginal income tax system.
Which expenses are tax deductible in Australia?
In Australia, amongst other things, one rule is that the tax expense that you have already paid must be directly related to earning income. You also need to keep a record of the expense to prove you have paid for it!