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.
It is the amount withheld by employers from the wage or salary of the employees.
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.
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.
An appropriate level of taxation is applied whenever something or service is sold or bought between other countries and Australia.
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.
The author of this article is a top tax lawyer Perth who helps with a wide range of tax compliance and assessment issues. Visit https://www.munrodoig.com.au/ for more details.