The tax year ends 30 June each year. Generally, taxpayers pay income tax in respect of their income at the end of the tax year. Applicable tax rates are found in the Income Tax Rates Act 1986. For individuals, there is generally a tax-free threshold after which taxpayers pay tax at progressive marginal rates. A list of offsets appears at section 13-1 of ITAA 1997.
Assessable income includes ordinary income.
For Australian residents all ordinary income from sources in and outside Australia is included. However, for non-residents, only ordinary income from Australian sources is included. Ordinary income means income according to ordinary concepts and is explained by the numerous cases in the area. Examples of ordinary income include salary and wages and interest income. For Australian residents all statutory income from sources in and outside Australia is included.