Glossary of Tax Terms

Source deductions

Tax withheld on wages, salaries, social welfare benefits, bonuses, lump-sum payments and superannuation fund contributions. About 80% of source deductions come from PAYE on wages and salaries. Source deductions is the biggest, single tax type.

Stamp duty

Includes conveyancing and lease duty (prior to 20 May 1999), cheque duty, credit card duty (prior to 1 April 1998) and approved issuer levy.

Supplementary Estimates

Supplementary Estimates are prepared for the current year to seek parliamentary approval for: changes to any appropriation type; any further capital investment; changes in output prices; new outputs to be produced; changes relating to other expenses and benefits

Tax receipts

Tax that has been physically paid from a taxpayer to the relevant collection agency. Also referred to as cash.

Tax refund

Tax repaid to a taxpayer in settlement of over-payment of tax.

Tax revenue

The accrual, rather than the cash (“tax receipts”) measure of taxation. It is a measure of tax due, regardless of whether or not it has actually been paid.

Terminal tax

Tax paid by a taxpayer at the end of a tax-year in settlement of under-payment of tax during the year.

Thin capitalisation

A tax rule applicable to a non-resident-owned business that limits tax deductions for interest payments based on its level of debt relative to its assets.