Glossary of Tax Terms:

• Capital Gains Tax (CGT) :

  The tax you pay on profits made from selling assets like property or shares. Holding assets for more than 12 months typically qualifies for a 50% discount on the CGT.

• Deductions :

  Specific expenses that can be subtracted from your taxable income, reducing your overall tax burden.

• Fringe Benefits Tax (FBT) :

  Tax paid on benefits provided to employees, such as company cars or health insurance.

• Goods and Services Tax (GST) :

  A 10% tax on most goods and services sold in Australia. Businesses registered for GST can claim credits for GST paid on business expenses.

• PAYG :

  "Pay As You Go" withholding refers to the process where employers deduct tax from wages and send it to the ATO on behalf of employees.

• Taxable Income :

  Your income after all eligible deductions and exemptions are applied, used to calculate your tax liability.