To begin with, the tax system in Australia is really unique. It’s a perfect combination of both indirect and direct taxes. These duties are usually levied by both the state and Commonwealth governments. The term ‘Commonwealth’ generally refers to the national or federal level government in Australia. Whether it will be a direct or indirect tax will depend entirely on the type of tax required. Today the following post will familiarise you with some of the crucial aspects of the Australian taxation system.
The Commonwealth Government Has a Jury To Impose Taxes
The taxes are imposed on the Australian residents by a group of judges comprising its Federal Government. They do this for both native and offshore Australian dwellers. Indigenous Australians have to pay taxes pertaining to their various sources of income from different parts of the globe. On the contrary, overseas Australians have to pay taxes concerning only the Australian mode of earning. Australia has also formulated a few taxing systems like the ones stated below.
- A system determines whether a company or individual is the taxpayer.
- A system identifies whether the source of income in Australia or another country.
- The system of double tax agreement to ascertain that the tax is levied once on a particular income.
- The system of foreign tax credits. According to this, Australians earning foreign incomes are given tax credits. These credits are then optimized to ensure that the income has been taxed only for one time.
Do you wish to get comprehensive bits of information about these facts? Then get in touch with a top-notch Tax Accountant Perth, Australia today.
A Clear Understanding About Capital Gains Tax
When you sell your belongings, it results in a couple of gains. The Australian Tax Office imposes Capital Gains Taxes (CGTs) on such profits. These taxes are only applicable to extensive amounts of assets including both fixed and intangible assets. Some assets are applicable to exemptions like motor vehicles and the actual home etc. Assets like the real property etc. are incurred by capital gains for overseas Australians. Besides, native Australians can access 50% on their CGT taxes whereas offshore Australians cannot.
Tax Incentives (CGT)
Certain tax incentives are applicable to both inbound and capital investments. These tax incentives will be incurred during certain situations for a specific time-frame. Aside from that, any capital losses will be balanced against the capital gains. A professional of Tax Return Perth can provide you better assistance in this regard.
Duties for Businesses and Individuals
In, Australia both companies and individuals have to pay taxes alike. Australia optimizes a progressive tax scale system for individuals. According to this, the amount of tax will increase according to the increasing income of the person. This is applicable both to native and non-native Australians. Non-native Australians who are treated like native Australians have to pay the same amounts of tax like them. As an additional privilege, they will receive some discounts on their payable duties.
A Noteworthy Statistics
Around 12.6 million people had lodged returns during the financial year of 2010-11. These people comprised of about 55.7% of the total Australian population of 22.7 million assessed till 30th June 2012.
A company in Australia is liable for paying taxes according to its total Business Tax Return details. The duties of the company’s profits will be at a fixed rate of 30%. The fact is from 1st July 2015, the present Liberal Party of Australia has brought an exemption to this amount by 1.5%.
GSTs of Australia
The Goods and Service Taxes in Australia are quite similar to the Value Added Taxes applicable in other nations. These duties are chiefly imposed on the sale of various goods and services in Australia. They also apply to the items imported to the country. GSTs in Australia are again imposed at a fixed rate of 10%. Every Australian needs to pay GST while buying something. Things like education, health, and food items, etc. aren’t incurred by GST.
Miscellaneous Taxes in Australia
There are some other taxes in Australia applicable to its native and non-native dwellers which are outlined below.
- Superannuation Tax-Australian employers must pay this tax for their employees. If they don’t, they need to pay Superannuation Guarantee Charges (SGCs).
- Fringe Benefits Tax: This applies to the value of the non-cash benefits employers pay to their workers.
- Medicare Levy and Surcharge: Taxes that apply to Australian dwellers pertaining to their Medicare.
- Luxury Car Tax: This particular tax is levied at a fixed rate of 33% when a car is imported to or sold in Australia.
- Excise Duties: Products like petroleum, fuel, and tobacco, etc. are subject to excise taxes in Australia.
- Customs Taxes: Taxes that are levied on the imported goods of Australia are known as customs taxes.
So, want to Lodge company tax return online for your Australian business? To lodge your Company tax return virtually, the right knowledge and information are required indispensably. In order to attain such an understanding, you must read the post given above about the Australian taxing system painstakingly.