Question

What part of the legislation provides details of how much income tax must be paid and what does it state? 100–120 words

Answer 1

Income Tax Assessment Act 1997 section 4-10(1) provides details on how much income tax must be paid. Its states to pay the income tax for each financial year. The income year will be treated same as of the financial year; except for a company (for them, the income year the previous financial year), and if accounting period that is not the same as the financial year. It will be computed as:

Income tax = (Taxable income * Rate) - Tax offsets

For few entities, certain or all of their income tax for the financial year is carried out by reference to something other than taxable income for the income year.