Australia – Glossary Terms

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ABN(Australian Business Number)

What is an ABN? Learn how the Australian Business Number helps identify your business for tax and legal purposes. See...

Accounting Integration

Accounting integration is the process of connecting external apps and tools — like CRMs, POS systems, payroll, or payment platforms...

Accounting Method

Your accounting method determines when income and expenses are recorded in your books. In Australia, the two main methods are:...

Accounts Payable

Learn what accounts payable means in Australian business accounting, how it impacts your cash flow, and how Ozobooks helps you...

Accounts Receivable

Accounts receivable (AR) refers to the money owed to your business by customers who have received your product or service...

Activity Statement Summary

A document that summarises your lodged BAS and IAS submissions for a financial period.

Allowances

Allowances are extra payments made by employers to employees for specific expenses or work conditions — such as travel, uniforms,...

Annual Return

A company annual return (now part of the ASIC Annual Statement) is a yearly requirement for Australian companies to confirm...

ASIC Annual Review

The ASIC Annual Review is a mandatory yearly check-in for every company registered with the Australian Securities and Investments Commission...

ASIC Registration

Learn what ASIC registration means in Australia, who must register, and how Ozobooks helps with company setup, business name registration,...

Asset Register

An Asset Register is a formal record of all the fixed assets owned by a business, including machinery, vehicles, computers,...

Assets

Learn what assets are in accounting, the difference between current and non-current assets, and how Ozobooks helps Australian businesses track...

ATO (Australian Taxation Office)

The main government agency responsible for tax collection, compliance, and superannuation regulation in Australia.

Audit Trail

An audit trail is a detailed record of every financial transaction, showing the full path from the source document (like...

Bad Debt

What Qualifies as a Bad Debt? To be considered a legitimate bad debt under Australian tax law, the amount must:...

Balance Sheet

A balance sheet is a core financial report that shows your business’s financial position at a single point in time....

Balance Sheet

Discover what a balance sheet is, how it works for Australian businesses, and how Ozobooks helps you maintain accurate records...

Bank Feeds

Bank feeds are live or daily automatic connections between your bank account and accounting software. They import transaction data directly...

BAS (Business Activity Statement)

Learn what a BAS is, how often it's due, who must lodge it, and how Ozobooks simplifies BAS preparation, lodgement,...

BAS in Australia

A form submitted to the ATO to report and pay GST, PAYG, and other obligations. Lodged monthly or quarterly by...

Base Rate Entity

What is a Base Rate Entity? Learn how Australian companies qualify for the lower 25% tax rate based on turnover...

Bookkeeping

What is bookkeeping? Understand its role in Australian business accounting, the daily tasks involved, and how Ozobooks delivers accurate, stress-free...

Break-even Point

The break-even point (BEP) is the level of sales where total revenue equals total costs — meaning your business is...

Business Mileage

Business mileage refers to kilometres travelled for work purposes using a personal or business vehicle. In Australia, claiming mileage is...

Business Name

Learn what a business name is, why it matters, and how to register yours in Australia through ASIC. See how...

Business Name Renewal

Business name renewal is the process of maintaining legal ownership of your business name with ASIC (Australian Securities and Investments...

Business Plan

The financial section of a business plan outlines your revenue model, expenses, forecasts, and funding requirements. It shows investors, lenders,...

Business Structure

Learn the different types of business structures in Australia, including sole trader, company, trust, and partnership. Compare pros, cons, tax...

Capital Expenditure

Capital expenditure (CapEx) refers to money spent by a business on acquiring or upgrading physical assets that have a useful...

Capital Gains Tax (CGT)

Learn what Capital Gains Tax (CGT) is, how it's calculated in Australia, who pays it, and how Ozobooks helps you...

Cash Flow Forecasting

Cash flow forecasting is the process of estimating a business’s future inflows and outflows of cash over a specific period...

Cash Flow Statement

Understand what a cash flow statement is in Australian accounting, how it tracks cash movement, and how Ozobooks uses it...

Chart of Accounts

The chart of accounts (COA) is the backbone of your business’s financial system. It’s a structured list of all the...

Chart of Accounts

Learn what a Chart of Accounts is, how it works in Australian bookkeeping, and how Ozobooks helps set up an...

Closing Balance

A closing balance is the final value in an account at the end of a specific period — monthly, quarterly,...

Cloud Accounting

Cloud accounting refers to using internet-based software to manage a business’s accounting and bookkeeping tasks. Unlike traditional desktop tools, cloud...

Company Dividend Statement

Understand what a company dividend statement is, its key components, and how Ozobooks helps ensure shareholders receive compliant dividend documentation...

Company Tax Rate

Learn the company tax rate in Australia for 2025, including base rate entities vs standard companies, and how Ozobooks helps...

Company Tax Return

What is a company tax return in Australia? Learn who needs to lodge one, deadlines, penalties, and how Ozobooks handles...

Depreciation

Depreciation is how the value of an asset decreases over time due to use, wear and tear, or obsolescence. In...

Director ID

A Director ID is a unique 15-digit identifier issued to directors by the Australian Business Registry Services (ABRS). It’s designed...

Dividend

Understand what a dividend is in Australian accounting, how dividends are taxed, types (franked/unfranked), and how Ozobooks helps with reporting...

Double Entry

Understand double entry bookkeeping, the two-account rule, and how it ensures accurate financial records for Australian businesses. Learn how Ozobooks...

Employee vs Contractor

Understand the difference between an employee and a contractor in Australia. Learn how it affects tax, superannuation, and your payroll...

Exempt Income

Exempt income refers to money you receive that’s not taxed and not included in your assessable income. While it still...

Expense Reimbursement

Expense reimbursement is when a business repays an employee, contractor, or director for out-of-pocket expenses incurred during work. Handled correctly,...

Fixed Assets

Fixed assets are long-term tangible assets used in the daily operation of your business. They are not sold in the...

Fixed Assets

Learn what fixed assets are in Australian business accounting, how they differ from current assets, and how Ozobooks helps you...

Fringe Benefits Tax (FBT)

Discover what Fringe Benefits Tax (FBT) is, which benefits are taxable, who pays it, and how Ozobooks helps Australian businesses...

Fuel Tax Credits

Fuel Tax Credits provide eligible Australian businesses with a refund or offset for the fuel tax (excise or customs duty)...

General Ledger

Learn what a general ledger is, how it supports double entry bookkeeping, and how Ozobooks helps Australian businesses maintain accurate,...

GST (Goods and Services Tax)

A 10% value-added tax applied to most goods and services sold in Australia. Businesses must register for GST if turnover...

IAS

Understand what an IAS is, how it differs from a BAS, who needs to lodge it, and how Ozobooks supports...

Imputation Credits / Franking Credits

Learn how imputation credits (also known as franking credits) work in Australia, how they reduce your tax bill, and how...

Income Statement

An income statement, also known as a profit and loss (P&L) statement, is a core financial report that shows your...

Income Statement

Learn what an income statement is, how it works under Australian accounting standards, and how Ozobooks helps you track profitability...

Income Tax Assessment

An Income Tax Assessment is the ATO’s formal calculation of your tax payable or refundable based on the information you...

Income Tax Return

Find out what an income tax return is, when to lodge it, and how Ozobooks helps individuals and businesses file...

Input Tax Credit

An input tax credit allows GST-registered businesses in Australia to claim back the GST paid on goods or services used...

Leave Loading

Leave loading is an extra payment (usually 17.5%) added to an employee’s annual leave pay. It was originally designed to...

Liabilities

Understand what liabilities mean in accounting, the difference between current and non-current liabilities, and how Ozobooks helps Australian businesses stay...

Loan Agreement (Related Party)

A related party loan agreement is a formal document outlining the terms of a loan between two connected entities —...

Lodgement Deferral

A lodgement deferral is an official extension of time granted by the ATO to submit a tax return, BAS, or...

Notice of Assessment

Recognises income and expenses when they’re earned or incurred, not when cash changes hands. Required for larger businesses.

PAYG (Pay As You Go)

Understand PAYG in Australia, including withholding obligations for employers and instalments for businesses. Learn how Ozobooks simplifies PAYG setup, reporting,...

PAYG Instalments

What are PAYG Instalments? Learn how Australian businesses pre-pay income tax throughout the year, and how Ozobooks helps manage and...

PAYG Withholding

Learn what PAYG withholding is, when your business must use it, how to report to the ATO, and how Ozobooks...

PAYG Withholding Variation

A PAYG Withholding Variation lets you adjust the amount of tax withheld from your regular income — usually to better...

PAYGI (Instalments)

PAYGI stands for Pay As You Go Instalments — a system where businesses and individuals pay their income tax in...

Payroll Tax

Payroll tax is a state-based tax on wages paid by employers once total payroll exceeds a certain threshold. While often...

Prepaid Expenses

A prepaid expense is a cost your business pays in advance for goods or services that will be received in...

Profit Margin

Profit margin measures how much profit a business makes after covering its costs, expressed as a percentage of revenue. It’s...

Receipt Management

Receipt management is the process of capturing, storing, and organising receipts related to business expenses. It ensures that every deductible...

Redundancy Payout

A redundancy payout is compensation paid to an employee whose position has been made genuinely redundant. This payment may include...

Salary Packaging

Salary packaging (also called salary sacrificing) is an arrangement in which an employee agrees to receive a lower cash salary...

Single Touch Payroll (STP)

A reporting method where employers send employee payroll, tax, and super information to the ATO each pay run.

Stocktake

A stocktake is the process of physically counting and valuing your trading stock at the end of a financial period....

STP Phase 2

STP Phase 2 (Single Touch Payroll Phase 2) is an expansion of Australia’s payroll reporting system that requires employers to...

Superannuation

Understand how superannuation works for Australian businesses, employer obligations, payment deadlines, and how Ozobooks helps keep you compliant with the...

Tax Agent

Learn who qualifies as a tax agent in Australia, what services they offer, and how Ozobooks partners with registered agents...

Tax Deductible Expense

A tax deductible expense is a cost directly related to earning your income, which you can subtract from your total...

Tax File Number Declaration

A Tax File Number (TFN) Declaration is a form employees complete and give to their employer so that the correct...

Tax Planning

Tax planning is the process of organising your finances, income, and expenses in a way that legally minimises your tax...

Tax Return Lodgment Deadline

The tax return lodgement deadline is the last date by which you must submit your income tax return to the...

Taxable Income

What’s Included in Taxable Income? ✅ Included: ❌ Not Included: Taxable Income vs Assessable Income Term Meaning Assessable Income All...

Termination Payment

A termination payment is the total amount paid to an employee when their employment ends — whether through resignation, redundancy,...

Trading Stock

Trading stock refers to the goods a business buys, manufactures, or holds for the purpose of selling or exchanging in...

Trust Distribution

Learn what trust distribution is, how income is allocated to beneficiaries, and how Ozobooks helps ensure accurate reporting and tax...

Working Capital

Working capital is the difference between a business’s current assets and current liabilities. It reflects how much short-term cash or...

Australia – Glossary Terms

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