Taxable income and adjusted taxable income differences, explained.
There is a common confusion over the difference between adjusted taxable income (used for non tax calculations such as government payments, family benefits , child support and private hospital government contributions) and taxable income which is used for tax on income.
Taxable income is income less deductions and is used to calculate your tax on taxable income. Critical in calculating your tax return refund position.
Adjusted taxable income is the sum of the following amounts:
taxable income (excluding any assessable First home super saver released amount)
adjusted fringe benefits total, which is the sum of
reportable fringe benefits amounts received from employers exempt from fringe benefits tax under section 57A of the Fringe Benefits Tax Assessment Act 1986 multiplied by 0.53, and
reportable fringe benefits amounts from employers not exempt from fringe benefits tax under section 57A of the Fringe Benefits Tax Assessment Act 1986
reportable employer superannuation contributions
deductible personal superannuation contributions
certain tax-free government pensions or benefits received by the person
target foreign income (income and certain other amounts from sources outside Australia not included in your taxable income or received as a fringe benefit)
net financial investment loss (the amount by which the person’s deductions attributable to financial investments exceeded their total financial investment income)
net rental property loss (the amount by which the person’s deductions attributable to rental property exceeded their rental property income)
any child support payments the person provided to another person.