Refunded to all parties in the chain of production

refunded to all parties in the chain of production other than the final consumer.
The tax was introduced by the Howard Government and commenced on 1 July 2000, replacing
the previous federal wholesale sales tax system and designed to phase out a number of various
State and Territory Government taxes, duties and levies such as banking taxes and stamp duty.
f.) Income Tax Assessment Act
This Act may be cited as the Income Tax Assessment Act 1997 . This Act commences
on 1 July 1997.
What is this act is about?
Annual income tax
(1) Income tax is payable for each year by each individual and company, and by some
other entities.
(2) Most entities have to pay instalments of income tax before the income tax
they actually have to pay can be worked out.
Your other obligations as a taxpayer
(1) Besides paying instalments and the rest of your income tax, your main obligations as
a taxpayer are:
(a) to keep records and provide information as required by:
· the Income Tax Assessment Act 1936 ; and
· Division 900 (which sets out substantiation rules) of this Act; and
(b) to lodge income tax returns as required by:
· the Income Tax Assessment Act 1936 .
Tax file numbers
Trainer Resource: FNSBKG404 v1.0 © Emily McLennan, 2018

FNSBKG404 Carry out business activity and instalment activity statement tasks V1.0
(2) Under Part VA of the Income Tax Assessment Act 1936 , a tax file number can be
issued to you. You are not obliged to apply for a tax file number. However, if you do
not quote one in certain situations:
· you may become liable for instalments of income tax that would not
otherwise have been payable;
· the amount of certain of your instalments of income tax may be
increased.
Your obligations other than as a taxpayer
Your main obligations under the income tax law, other than as a taxpayer are:
· in certain situations, to deduct from money you owe to another
person, and to remit to the Commissioner, instalments of income tax
payable by that person.
Work out your income tax for the *financial year as follows:
Income Tax = (Taxable Income x Rate) – Tax Offsets
Method statement
Step 1. Work out your taxable income for the income year.
Step 2. Work out your basic income tax liability on your taxable income using:
(a) the income tax rate or rates that apply to you for the income year; and
(b) any special provisions that apply to working out that liability.
Step 3. Work out your tax offsets for the income year. A tax offset reduces the amount of
income tax you have to pay.
Step 4. Subtract your *tax offsets from your basic income tax liability. The result is how much
income tax you owe for the *financial year.
Work out your taxable income for the income year like this :
Taxable Income = Assessable Income – Deductions
Method statement
Step 1. Add up all your assessable income for the income year.
Step 2. Add up your deductions for the income year.
Step 3. Subtract your deductions from your assessable income (unless they exceed it). The
result is your taxable income. (If the deductions equal or exceed the assessable income,
you don’t have a taxable income.)
Assessable income consists of ordinary income and statutory income.