Have you ever sat in a meeting with your accountant only to wonder if they were speaking another language? The world of accounting and tax is filled with terms, abbreviations and acronyms that outside of the industry don’t always have a lot of meaning. To help you understand what I (or your accountant) is saying I have put together a glossary of terms so at your next meeting you will be an expert to!
| ABN | Australian business number |
| ABR | Australian business register |
| ACN | Australian company number |
| ASIC | Australian Securities and Investment Commission |
| ATO | Australian Taxation Office |
| BAS agent | Registered with the TPB to provide BAS related services |
| CA or CPA or NTAA |
These are initials credentialing the accountant as a member of an accounting body
– Chartered Accountant – Certified Practicing Accountant – National Tax Accountants Association |
| CGT | Capital gains tax |
| DGR | Deductible gift recipient |
| Div 7A | A section of the tax act dealing with loans made by private companies |
| ELS | Electronic lodgement system |
| ETP | Eligible termination payment |
| FBT | Fringe Benefits Tax |
| FIRB | Foreign Investment Review Board |
| FITO | Foreign income tax offset |
| GIC | General interest charge (when you don’t pay your tax on time!!) |
| GL | General ledger – list of the account names and number in your ledger |
| GST | Goods and services tax |
| HECS | Higher Education Contribution Scheme |
| IAS | Instalment Activity Statement. This is similar to a BAS, but usually doesn’t contain GST. |
| ITAA | Income Tax Assessment Act – there are two the 1936 and the 1997 act |
| ITR | Income tax return |
| LCT | Luxury car tax |
| P&L | Profit and loss statement |
| PAYG | Pay as you go – refers to making tax payments of various types as income is earnt. Most common instance is the tax withheld from salary and wages |
| SBR | Standard business reporting |
| SRO | State Revenue Office |
| STS | Simplified tax system |
| Tax agent | Registered with the TPB and is licensed to provide taxation services |
| TB | Trial balance – list of all profit and loss and balance sheet accounts and their balance |
| TFN | Tax file number |
| TIA | Tax Institute of Australia |
| TPB | Tax Practitioners Board – the body that oversees tax and BAS agents |
| WET | Wine equalisation tax |
| WHT | Withholding tax – usually associated with tax withheld from interest, dividends or royalties and may be represented as IWHT, DWHT or RWHT |