These activities are primarily financed through taxation. The total level of taxation, the mix of taxation on income and on goods and services, and the equitable distribution of the tax 'burden' on individuals, families and businesses are issues of discussion and debate in Australian society today. Australian Taxation Office, Taxation Statistics. Taxable income - the amount remaining after making all allowable deductions from gross income. Such deductions include all normal business expenses, certain special deductions for expenditures of a capital nature and certain non-business deductions.
Taxable income is the amount to which the tax rates are applied.
Gross tax - is calculated by applying the general rates of tax to the taxable income of individuals. Taxpayer - the term is used in this review to refer to those individuals whose net tax is greater than zero. A further 1.7 million people who submitted income tax returns incurred no net tax. Moving up the taxable income scale, the impact of the tax-free threshold decreases, and the impact of higher marginal tax rates increases, so that the share of net tax incurred rises at a faster rate than the share of taxable income. Consequently, in 1995-96, the share of net tax borne by the three highest deciles was greater than their share of taxable income.