Glossary of Terms

The glossary explains the concepts in plain English. Blue links throughout the electronic book return students to legislation, rulings, cases or the relevant chapter.

Adjustment

A statutory GST change to an earlier net amount where circumstances later change, including cancellation, changed consideration or changed use.

Balancing adjustment

Division 40 reconciliation when a balancing-adjustment event occurs and termination value differs from adjustable value.

CGT event

A statutory event in the CGT regime that can produce a capital gain or capital loss.

Capital allowance

A statutory deduction recognising qualifying capital expenditure or decline in value over time.

Creditable acquisition

An acquisition satisfying s 11-5 GST Act, including creditable purpose, taxable supply, consideration and registration.

Creditable purpose

The GST concept in s 11-15 identifying enterprise use and excluding private/domestic use and relevant input-taxed use.

Depreciating asset

An asset with limited effective life expected to decline in value through use, subject to statutory exclusions and inclusions.

Enterprise

GST concept in s 9-20; broader than ordinary business and capable of including trade ventures and leasing activities.

FBT

Fringe benefits tax imposed at employer level on qualifying employment-related non-cash benefits.

Fringe benefit

The statutory s 136(1) FBTAA concept requiring the necessary provider, recipient and employment connection, subject to exclusions.

GST turnover

Statutory turnover measure in Division 188 used in registration analysis, with specified inclusions/exclusions.

GST-free supply

No GST charged, but related acquisitions can generally retain input-tax-credit entitlement.

Input tax credit

Credit for GST on qualifying creditable acquisitions or importations.

Input-taxed supply

No GST on the supply and generally no input tax credits for related acquisitions.

Low-value pool

Division 40 mechanism for calculating decline in value collectively for qualifying low-cost and low-value assets.

Market selling value

One of the permitted closing-stock valuation bases under the trading-stock provisions.

Otherwise deductible rule

FBT reduction mechanism asking whether the employee would have received an income-tax deduction if they had personally incurred the unreimbursed expense.

Personal services business (PSB)

Status under Division 87 that can prevent the PSI attribution/deduction-limitation rules from applying.

Personal services income (PSI)

Income mainly a reward for an individual's personal efforts or skills.

Prime cost method

Straight-line style Division 40 method based on cost, effective life and days held.

Replacement value

Permitted trading-stock valuation basis reflecting replacement price/value under the course framework.

Taxable importation

Division 13 GST liability concept for imported goods meeting the statutory conditions.

Taxable supply

Supply satisfying all s 9-5 limbs and not GST-free or input taxed to the relevant extent.

Trading stock

Items within s 70-10 held for sale/exchange or otherwise brought within the statutory/ordinary trading-stock concept.