Introduction to Australia’s Tax System

Australia’s taxation is a blend of indirect and direct taxes imposed by both State governments and the Commonwealth. It depends upon the kind of tax and if you want a comprehensive knowledge about the taxation in Australia, consult a tax lawyer Perth for deep insight.

Administration of Australia’s Taxation System


The taxpayers are responsible for submitting their tax return on the basis of self-assessment.

Pay-as-you-go (PAYG)

It is the amount withheld by employers from the wage or salary of the employees.

Withholding Taxes

It is applicable on a number of payments and it depends upon the payer not the receiver of the amount.

Australian Business Numbers and Tax File Numbers

ABN is used in the dealings of ATO with businesses. It is necessary to have an ABN for a business if it has to register for GST. TFN is also a similar tool used by organisations and individuals.

Commonwealth Taxes

The Commonwealth can impose taxes on the taxpayers of Australia as it is the federal or national level government of Australia.

Taxes on income

The income which is taxable includes the sources like wages, salary, interest, profit on business as well as dividends.

Jurisdiction to Tax

The Australian resident taxpayers are bound to pay tax on the income gained by worldwide sources. Non-resident taxpayers have to pay tax on income gained from Australia.

Taxation of Individuals and Business Entities on Income and Capital Gains

Australia has progressive taxation. The payable tax increases with the rise in taxable income in the case of individuals. However, companies are taxed at a flat 30% amount of profit and don’t concern the company’s total income. Contact a tax litigation attorney Perth for further information.

Taxes on Capital Gains (Capital Gains Tax (CGT)

CGT has to be paid on profit gained by the sale of the property. It also has special rules which are applicable to capital gains values.

Consumption Taxes – the Goods and Services Tax (GST)

GST is a comprehensive tax levied on the sale of products in Australia and the imported products. It is imposed at a flat 10% rate.

Other Taxes and Levies

Fringe Benefits Tax (FBT)

It is levied at the worth of benefits other than cash given to the employees by the employers.

Transfer Pricing

An appropriate level of taxation is applied whenever something or service is sold or bought between other countries and Australia.

Customs Duty

It is levied on all the products that are imported in Australia. It has a rate of around 5% of the product value.

A taxation lawyer Perth can guide you further about the taxation system.

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