This glossary serves as a reference to many of the terms included in STINMOD+ and STINMOD+ Online.
Income before tax
Income before tax (or assessable income) can include:
- Salary and wages
- Tips, gratuities and other payments for your services
- Allowances for things like car, travel, clothing and laundry
- Interest from bank accounts
- Dividends and other income from investments
- Bonuses and overtime an employee receives
- Commission a salesperson receives
Income tax is levied on a person's taxable income (including salary and wages, self-employed income, investment income and other types of income) unless this income is below a certain threshold or exempted from tax.
Source: Superguide and ATO
Medicare Levy and Medicare Levy Surcharge
Medicare gives Australian residents access to health care. It is partly funded by taxpayers. Medicare levy is reduced if a person's taxable income is below a certain threshold. If that person does not have the private hospital health insurance, he/she may be required to pay the Medicare levy surcharge in addition to the Medicare levy.
After income tax liability has been calculated using the tax scales, many taxpayers are entitled to tax offsets (previously referred to as tax rebates by the ATO). These tax offsets are subtracted from a person’s income tax liability but they cannot be used to reduce Medicare liability of that paerson. Thus, an individual may pay no tax but still have a Medicare levy liability. There are many different tax offsets, some of which depend on family structure and some of which are income tested.
- Low Income Tax Offset: is provided to low income taxpayers.
- Low and Middle Income Earner Tax Offset: is applied from 1 July 2018 and will only be in operation for 4 years until 30 June 2022.
- Beneficiary Tax Offset: may be payable to recipients of taxable Centrelink allowances.
- Seniors and Pensioners Tax Offset: may be payable to Senior Australians and taxpayers who are receiving a taxable Centrelink or DVA pension. The purpose of this tax offset is to ensure that pensioners can have certain levels of taxable income in addition to their pension without being liable for tax.
- Mature Age Worker Tax Offset: is paid to mature age workers to encourage and reward them for staying in the workforce. This tax offset is no longer available with effect from 1 July 2014.
- Dependent Spouse Tax Offset: is available to taxpayers who have a dependent spouse and no dependent children. This offset was abolished from 1 July 2014.
- Dependent Invalid and Invalid Carer Tax Offset: An individual may be entitled to this tax offset if his/her spouse, who is an invalid or who cares for an invalid their parent.
Source: STINMOD 12 User Guide, Superguide, and ATO
Child Care Benefit/Subsidy
The Child Care Benefit is a subsidy available to families with children in child care. The benefit is available for approved formal child care services such as long day care, family day care or outside school hours care, or for informal care with registered carers. CCB usually does not cover the full cost of child care. Since 2 July 2018, new child care subsidy scheme will be applied.
Source: STINMOD 12 User Guide, DHS and DHS
Family Tax Benefit
Family Tax Benefit is a payment that helps eligible families with the cost of raising children. It is made up of two parts:
- FTB Part A: is paid per-child and the amount paid is based on the family's circumstances.
- FTB Part B: is paid per-family and gives extra help to single parents and some couple families with one main income.
FTB can be paid either fortnightly or as a lump sum at the end of the financial year.
Source: DSS and DHS
- Age Pension: The main income support payment for people who have reached age pension age.
- Disability Support Pension: Financial help if an individual has a permanent physical, intellectual or psychiatric condition that stops him/her from working.
- Wife Pension: An income support payment we used to offer for women whose partner gets Age Pension or Disability Support Pension.
- Carer Payment: An income support payment if a person gives constant care to someone who has a severe disability, illness, or an adult who is frail and old.
- Parenting Payment Single: The main income support payment while an individual is a single parent and main carer of a young child.
- Newstart Allowance: The main income support payment while an individual is unemployed and looking for work.
- Sickness Allowance: An income support payment if a person can’t work or study for a while because of illness, injury or disability.
- Partner Allowance: An old payment for non-working partners of people on income support that’s closed to new claims.
- Parenting Payment Partnered: can be paid to one member of a couple who is a young child’s main carer.
- Special Benefit: A payment if an individual is in severe financial hardship and can’t get other income support from Centrelink.
- Widow Allowance: An income support payment if a female person is over a given age who became widowed, divorced or separated after turning 40.
- Youth Allowance: Financial help if an individual is either 24 or younger and a student or Australian Apprentice, or 21 or younger and looking for work.
- AUSTUDY: Financial help if an individual is 25 or older and studying or an Australian Apprentice.
- ABSTUDY: A group of payments for Aboriginal or Torres Strait Islander students or apprentices.