1. Gross Income

2. Assessable Income

3. Reliefs

4. Rebates

Why is the chargeable income tiered eg first $3k, next $1k etc and why not a flat rate for all income?

1. Gross Income

The total income earned by an individual or business before any deductions such as taxes, allowances, or expenses. It includes wages, salaries, bonuses, rental income, business profits, and other sources of income.

2. Assessable Income

Gross income that is subject to taxation after accounting for allowable expenses and deductions but before applying any reliefs or rebates. It is the basis on which income tax is calculated.

3. Reliefs

Allowances/deductions provided by tax authorities to reduce taxable income. Reliefs are typically granted for specific purposes, such as personal, family, or employment-related expenses, and they aim to lower the overall tax burden.

4. Rebates

Tax refunds/reductions applied after calculating the tax payable. Rebates may be provided as an incentive or relief to taxpayers under specific conditions, such as tax credits for certain expenditures or special status.

Why is the chargeable income tiered eg first $3k, next $1k etc and why not a flat rate for all income?

• To ensure that the tax does not over burden any payers involved and appears more reasonable to tax payers

Tax rebates are one-time reductions in tax payable, typically granted by the government to provide financial relief or stimulate the economy. They apply after tax liabilities are calculated and directly reduce the amount of tax owed. These can benefit families, businesses and individuals.