The level of Australian income taxation along with the complexity of the income tax system means that tax considerations continue to be a major factor in business and investment decisions. Some of the complexity is due to tax concessions, the decision to tax non-cash benefits (fringe benefits) in the hands of the provider (instead of recipient) and the interaction between the income tax, the fringe benefits tax (FBT) and the goods and services tax (GST). After briefly dealing with tax policy, tax mix, tax reform and tax administration issues, this subject mainly concentrates on income taxation in Australia. However, it also briefly deals with FBT and the GST. Topics include, concept of income, other assessable income items, capital gains tax within the income tax, allowable deductions including capital allowance deductions such as depreciation, taxation of trading stock, taxation of partnerships, taxation of trusts, taxation of corporations, anti-avoidance or anti-tax planning provisions, FBT, GST and the interaction between the income tax, FBT and GST.