What is Assessable Income?

(last updated 01/04/2014) 

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Assessable income should not be confused with "taxable income", which is assessable income LESS allowable deductions

Assessable income is the starting point for all tax returns and includes all income receipts regardless of how it is taxed or whether specific Tax-Offsets apply. See this post for a checklist of what is included in assessable income.

Even though it is assessable, tax may not be payable if the income for the year ended 30 June is less than the appropriate tax-free threshold. See this post for details of the Tax Free Threshold and various rates tables that can apply to income.

A quick list of examples of assessable income are:
Some income receipts are specifically exempted from tax - see this post for a checklist of What is Exempt Income?

Other receipts, although they form part of a payment "Package" may not be assessable, but are still reported in the annual tax return - eg Fringe Benefits. 

You may also need to be aware of Adjusted Taxable Income (ATI), which, like Fringe Benefits, may effect other government entitlements (eg FTB) or liabilities (eg Medicare Levy Surcharge or Child Support). See this post for an explanation of ATI

A final point on income from a hobby.  Many people commence a business type operation but on such a small scale that it does not actually represent a business and is therefore not assessable income. Another scenario of a hobby is where a part time activity is pursued for pleasure or recreation. Income received from a hobby does not form part of assessable income. See this explanation and checklist of income from a hobby.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:
For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 

Copyright 2014. My Tax Zone.