What is the difference between “Tax Assessed” and "Tax Payable/Refundable" amounts?

The Tax Assessed amount is the the total tax, including Medicare Levy and any reducing offsets, that each taxpayer has to pay BEFORE taking into account employee PAYG Tax, PAYG Instalments, or the benefit of franking credits.

This allows us to calculate an Average Tax Rate % for each taxpayer and for the group – allowing for a meaningful comparison with prior years.

The Tax Payable/ Refundable is the total Tax Assessed LESS employee PAYG Tax, PAYG Instalment and Franking Credits. This is the final payable / refund from Tax Return Lodgement.

This amount is usually very different from the Tax Assessed amount, and this is important for your clients because it shows them how much final tax refund / tax payable they have for each taxpayer in their group and the total for the group as a whole.