Taxation in Australia
Encyclopedia
There are many forms of taxation in Australia. Individuals and companies in Australia may be required to pay taxes or charges to all levels of government: local
, state
, and federal government
s. Taxes are collected to pay for public services
and transfer payments.
Income taxes are the most significant form of taxation in Australia, and collected by the federal government
through the Australian Taxation Office
. Australian GST
revenue is collected by the Federal government, and then paid to the states under a distribution formula determined by the Commonwealth Grants Commission
.
.
Personal income taxes in Australia are imposed on the personal income of each person on a progressive basis, with higher rates applying to higher income levels. Unlike some other countries, personal income tax in Australia is imposed on an individual and not on a family unit.
Individuals are also taxed on their share of any partnership or trust profits to which they are entitled for the financial year.
(CGT) in the context of the Australian taxation system applies to the capital gain made on disposal of any asset, except for specific exemptions. The most significant exemption is the family home. Rollover provisions apply to some disposals, one of the most significant is transfers to beneficiaries on death, so that the CGT is not a quasi death duty.
CGT operates by having net gains treated as taxable income
in the tax year an asset is sold or otherwise disposed of. If an asset is held for at least 1 year then any gain is first discounted by 50% for individual taxpayers, or by 33% for superannuation funds. Net capital losses in a tax year may be carried forward and offset against future capital gains. However, capital losses cannot be offset against income.
Personal use assets and collectables are treated as separate categories and losses on those are quarantined so they can only be applied against gains in the same category, not other gains. This works to stop taxpayers subsidising hobbies from their investment earnings.
on profits. Unlike personal income taxes which use a progressive scale, corporate taxes in Australia are calculated at a flat 30% rate. Tax is paid on corporate income at the corporate level before it is distributed to individual shareholders as dividends. A tax credit (called a franking credit) is provided to individuals who receive dividends to reflect the tax already paid at the corporate level (a process known as dividend imputation
).
of 10% on the supply of most goods and services by entities registered for Goods and Services Tax
(GST). This tax system was introduced in Australia on 1 July 2000 by the then Howard Liberal government. A number of supplies are GST-free (e.g., many basic foodstuffs, medical and educational services, exports), input-taxed (residential accommodation, financial services, etc.), exempt (Government charges) or outside the scope of GST.
The revenue from this tax is distributed to the States.
State governments do not levy any sales taxes though they do impose stamp duties on a range of transactions.
In summary, the GST rate of 10% will be charged on most goods and services consumed in Australia. If you are registered for GST, you need to include GST in the price you charge your customers for goods and services they purchase from you (called sales). However, you will be able to claim a credit for the GST you have paid on your business expenses and other inputs (called a GST credit). You have to pay the difference between GST charged on sales and GST credits to the Tax Office periodically.
There are two types of sales which will be treated differently:
(council rates) on residential, industrial and commercial properties.
In addition, some State governments levy tax on land values for investors and primary residence
s of high value.
The State governments also levy stamp duties
on transfers of land and other similar transactions.
Fire Service Levies are also commonly applied to domestic house insurance and business insurance contracts. These levies are required under State Government law to assist in funding the fire services in each State.
on goods such as cigarettes, petrol, and alcohol
.
as of June 2006 are as follows:
Note: Petrol used for Aviation is taxed at $0.02854 per litre
, tobacco products
, perfume
, and other items. Some of these goods can be purchased duty-free at duty free shops
.
Employers, or a group of related businesses, whose total Australian wages exceed the current NSW monthly threshold, are required to pay NSW payroll tax.
Monthly threshold:
Each monthly payment or 'nil' remittance is due seven days after the end of each month or the next business day if the seventh day is a weekend (i.e. August payment is due by 7 September). The annual reconciliation and payment or 'nil' remittance is due by 21 July.
Effective July 2007 - In NSW, payroll tax is levied under the Payroll Tax Act 2007 and administered by the Taxation Administration Act 1996.
Prior to 1 July 2007 - In NSW, payroll tax was levied under the Payroll Tax Act 1971 and administered by the Taxation Administration Act 1996.
There are deductions, concessions and exemptions available to those that are eligible. The current payroll tax rate is 4.75%.
when an employer (or a Group of employers) has a wages bill in excess of $600,000 for services rendered by employees anywhere in Australia if any of those services are rendered or performed in South Australia.
The tax is self-assessed in that the employer calculates the liability and then pays the appropriate amount to the Office of State Revenue, by way of a monthly, quarterly or annual return.
On 8 December 2004 new legislation was passed making it mandatory for an employer that has, or is a member of a group that has, an expected payroll tax liability equal to or greater than $100,000 per annum, to lodge and pay their payroll tax return via Revenue Online (ROL). This amendment to the Payroll Tax Assessment Act 2002 is effective 1 July 2006.
to most, although not all, fringe benefits, which are generally non-cash benefits. Most fringe benefits are also reported on employee payment summaries for inclusion on personal income
tax return
s that must be lodged annually.
in Australia, with Australia abolishing what was known as death duties in 1979. However, assets acquired from the estate may become subject to Capital Gains Tax.
When you inherit an asset as a beneficiary of the estate of a person who died on or after 20 September 1985, you must keep special records.
If the asset was acquired by the deceased person before 20 September 1985, you need to know the market value of the asset at the date of the person's death and any relevant costs incurred by the executor or trustee. This is the amount that the asset is taken to have cost you. If the executor or trustee has a valuation of the asset, ask for a copy of that valuation report. Otherwise you will need to get your own valuation.
If the asset you inherit was acquired by the deceased person on or after 20 September 1985, you need to know full details of all relevant costs incurred by the deceased person and by the executor or trustee. Request those details from the executor or trustee. Even if you inherit a house that was the family home of the deceased person, you need to keep records of costs paid by the deceased person in case you are not able to claim a full exemption for the house after you inherit it.
) may be taxed at up to three points, depending on the circumstances: at the point of contribution to a fund, on investment income and at the time benefits are received. In some circumstances, no tax is applicable at all.
The compulsory nature of Australian Superannuation means that it is sometimes regarded as being similar to social security taxes levied in other nations. This is more frequently the case when comparisons are being made between the tax burden of respective nations.
The first taxes in Australia were raised to help pay for the completion of Sydney's first gaol and provide for the orphans of the colony. Import duties were put on spirits, wine and beer and later on luxury goods.
After 1824 the Government of New South Wales raised extra revenue from customs and excise duties. These were the most important sources of money for the colony's Government throughout the 19th century. Taxes were raised on spirits, beer, tobacco, cigars and cigarettes.
These taxes would vary between States, or colonies as they were then called. This still persists today.
Colonial governments also raised money from fees on wills and stamp duty, which is a tax imposed on certain kinds of documents.
In 1880 the Colony of Tasmania imposed a tax on income received from the profits of public companies. Four years later, a general tax on income was introduced in South Australia, and in 1895 income tax was introduced in New South Wales at the rate of six pence in the pound.
In 1972 the government of William McMahon
appointed the NSW Supreme Court judge
Kenneth Asprey
to conduct a full and wide ranging review of the tax system. Although controversial when completed for the Whitlam Government
in 1975, the Asprey report on taxation has acted "as a guide and inspiration to governments and their advisers for the following 25 years." The main recommendations of the report have all been implemented and are today part of Commonwealth taxation in Australia.
On 20 September 1985, Capital gains tax
was introduced.
The GST
replaced the older wholesale sales tax in 2000.
In July 2001, the Financial Institutions Duty
was abolished.
Between 2002 and 2005, Bank Account Debits Tax
was abolished.
Tax law:
Related:
Local government in Australia
Local government in Australia is the third tier of government, administered by the states and territories which in turn are beneath the Commonwealth or federal tier. Unlike New Zealand, the US or the UK, there is only one level of local government in all states, with no distinction such as...
, state
State government
A state government is the government of a subnational entity in a federal form of government, which shares political power with the federal or national government. A state government may have some level of political autonomy, or be subject to the direct control of the federal government...
, and federal government
Government of Australia
The Commonwealth of Australia is a federal constitutional monarchy under a parliamentary democracy. The Commonwealth of Australia was formed in 1901 as a result of an agreement among six self-governing British colonies, which became the six states...
s. Taxes are collected to pay for public services
Public services
Public services is a term usually used to mean services provided by government to its citizens, either directly or by financing private provision of services. The term is associated with a social consensus that certain services should be available to all, regardless of income...
and transfer payments.
Income taxes are the most significant form of taxation in Australia, and collected by the federal government
Government of Australia
The Commonwealth of Australia is a federal constitutional monarchy under a parliamentary democracy. The Commonwealth of Australia was formed in 1901 as a result of an agreement among six self-governing British colonies, which became the six states...
through the Australian Taxation Office
Australian Taxation Office
The Australian Taxation Office is an Australian Government statutory agency and the principal revenue collection body for the Australian Government. The ATO has responsibility for administering the Australian federal taxation system and superannuation legislation...
. Australian GST
Goods and Services Tax (Australia)
The GST is a broad sales tax of 10% on most goods and services transactions in Australia. It is a value added tax, not a sales tax, in that it is refunded to all parties in the chain of production other than the final consumer....
revenue is collected by the Federal government, and then paid to the states under a distribution formula determined by the Commonwealth Grants Commission
Commonwealth Grants Commission
The Commonwealth Grants Commission is an Australian government body that advises on Australian Government financial assistance to the states and territories of Australia with the aim of achieving Horizontal Fiscal Equalisation....
.
Personal income taxes
Income taxes on individuals are imposed at the federal level. This is the most significant source of revenue in Australia. The state governments do not impose income taxes, and have not done so since World War IIWorld War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
.
Personal income taxes in Australia are imposed on the personal income of each person on a progressive basis, with higher rates applying to higher income levels. Unlike some other countries, personal income tax in Australia is imposed on an individual and not on a family unit.
Individuals are also taxed on their share of any partnership or trust profits to which they are entitled for the financial year.
Capital gains tax
Capital Gains TaxCapital gains tax
A capital gains tax is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property...
(CGT) in the context of the Australian taxation system applies to the capital gain made on disposal of any asset, except for specific exemptions. The most significant exemption is the family home. Rollover provisions apply to some disposals, one of the most significant is transfers to beneficiaries on death, so that the CGT is not a quasi death duty.
CGT operates by having net gains treated as taxable income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...
in the tax year an asset is sold or otherwise disposed of. If an asset is held for at least 1 year then any gain is first discounted by 50% for individual taxpayers, or by 33% for superannuation funds. Net capital losses in a tax year may be carried forward and offset against future capital gains. However, capital losses cannot be offset against income.
Personal use assets and collectables are treated as separate categories and losses on those are quarantined so they can only be applied against gains in the same category, not other gains. This works to stop taxpayers subsidising hobbies from their investment earnings.
Corporate taxes
Companies and corporations pay company taxCorporate tax
Many countries impose corporate tax or company tax on the income or capital of some types of legal entities. A similar tax may be imposed at state or lower levels. The taxes may also be referred to as income tax or capital tax. Entities treated as partnerships are generally not taxed at the...
on profits. Unlike personal income taxes which use a progressive scale, corporate taxes in Australia are calculated at a flat 30% rate. Tax is paid on corporate income at the corporate level before it is distributed to individual shareholders as dividends. A tax credit (called a franking credit) is provided to individuals who receive dividends to reflect the tax already paid at the corporate level (a process known as dividend imputation
Dividend imputation
Dividend imputation is a corporate tax system in which some or all of the tax paid by a company may be attributed, or imputed, to the shareholders by way of a tax credit to reduce the income tax payable on a distribution...
).
Goods and Services taxes
The Federal Government levies a value added taxValue added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
of 10% on the supply of most goods and services by entities registered for Goods and Services Tax
Goods and Services Tax (Australia)
The GST is a broad sales tax of 10% on most goods and services transactions in Australia. It is a value added tax, not a sales tax, in that it is refunded to all parties in the chain of production other than the final consumer....
(GST). This tax system was introduced in Australia on 1 July 2000 by the then Howard Liberal government. A number of supplies are GST-free (e.g., many basic foodstuffs, medical and educational services, exports), input-taxed (residential accommodation, financial services, etc.), exempt (Government charges) or outside the scope of GST.
The revenue from this tax is distributed to the States.
State governments do not levy any sales taxes though they do impose stamp duties on a range of transactions.
In summary, the GST rate of 10% will be charged on most goods and services consumed in Australia. If you are registered for GST, you need to include GST in the price you charge your customers for goods and services they purchase from you (called sales). However, you will be able to claim a credit for the GST you have paid on your business expenses and other inputs (called a GST credit). You have to pay the difference between GST charged on sales and GST credits to the Tax Office periodically.
There are two types of sales which will be treated differently:
- Suppliers of GST-free goods and services will not have to pay GST when they make a sale but they will be entitled to GST credits.
- Suppliers of input taxed goods and services do not have to charge GST on sales but they will not be entitled to claim GST credits from their purchases of inputs.
Property taxes
Local governments are typically funded largely by taxes on land valueLand value tax
A land value tax is a levy on the unimproved value of land. It is an ad valorem tax on land that disregards the value of buildings, personal property and other improvements...
(council rates) on residential, industrial and commercial properties.
In addition, some State governments levy tax on land values for investors and primary residence
Primary residence
A person's primary residence is the dwelling where they usually live, typically a house or an apartment. A person can only have one primary residence at any given time, though they may share the residence with other people...
s of high value.
The State governments also levy stamp duties
Stamp duty
Stamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions. A physical stamp had to be attached to or impressed upon the document to denote that stamp duty...
on transfers of land and other similar transactions.
Fire Service Levies are also commonly applied to domestic house insurance and business insurance contracts. These levies are required under State Government law to assist in funding the fire services in each State.
Excise taxes
The Federal Government imposes excise taxesExcise
Excise tax in the United States is a indirect tax on listed items. Excise taxes can be and are made by federal, state and local governments and are far from uniform throughout the United States...
on goods such as cigarettes, petrol, and alcohol
Alcohol
In chemistry, an alcohol is an organic compound in which the hydroxy functional group is bound to a carbon atom. In particular, this carbon center should be saturated, having single bonds to three other atoms....
.
Fuel taxes in Australia
The excise tax on commonly used fuels in AustraliaAustralia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
as of June 2006 are as follows:
- A$0.38143 per litre on Unleaded Petrol fuel (Includes standard, blended (E10) and premium grades)
- A$0.38143/0.40143 per litre on Diesel fuel (Ultra-low sulphur/Conventional)
- A$0.025 per litre on Liquified petroleum gasLiquified petroleum gasLiquefied petroleum gas is a flammable mixture of hydrocarbon gases used as a fuel in heating appliances and vehicles. It is increasingly used as an aerosol propellant and a refrigerant, replacing chlorofluorocarbons in an effort to reduce damage to the ozone layer...
used as fuel (AutogasAutogasAutogas is the common name for liquefied petroleum gas when it is used as a fuel in internal combustion engines in vehicles as well as in stationary applications such as generators. It is a mixture of propane and butane....
or LPG as it is commonly known in Australia) - A$0.38143 per litre on EthanolEthanolEthanol, also called ethyl alcohol, pure alcohol, grain alcohol, or drinking alcohol, is a volatile, flammable, colorless liquid. It is a psychoactive drug and one of the oldest recreational drugs. Best known as the type of alcohol found in alcoholic beverages, it is also used in thermometers, as a...
fuel (Can be reduced/removed via Grants) - A$0.38143 per litre on BiodieselBiodieselBiodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....
(Can be reduced/removed via Grants)
Note: Petrol used for Aviation is taxed at $0.02854 per litre
Luxury Car Tax
Luxury Car Tax is payable by businesses which sell or import luxury cars, where the value of the car is above $57,466, or $75,375 for fuel-efficient cars with a fuel consumption of less than 7L per 100km.Customs duties
Customs duties are imposed on many imported goods such as alcoholAlcohol
In chemistry, an alcohol is an organic compound in which the hydroxy functional group is bound to a carbon atom. In particular, this carbon center should be saturated, having single bonds to three other atoms....
, tobacco products
Tobacco products
After tobacco has been processed, it is used to produce a number of different products.- Chewing tobacco :Chewing is one of the oldest ways of consuming tobacco leaves. Native Americans in both North and South America chewed the fresh leaves of the plant, frequently mixed with lime. Modern chewing...
, perfume
Perfume
Perfume is a mixture of fragrant essential oils and/or aroma compounds, fixatives, and solvents used to give the human body, animals, objects, and living spaces "a pleasant scent"...
, and other items. Some of these goods can be purchased duty-free at duty free shops
Duty-free shop
Duty-free shops are retail outlets that are exempt from the payment of certain local or national taxes and duties, on the requirement that the goods sold will be sold to travelers who will take them out of the country...
.
Payroll taxes
Payroll taxes are a tax paid by employers to Australian state governments. The tax amount is assessed on the basis of wages paid out by an employer. Payroll taxes in Australia are different in each state.New South Wales
- From 1 July 2010 to 31 December 2010 the rate of payroll tax is 5.5%
- From 1 January 2011 to 30 June 2011 the rate of payroll tax is 5.45%
- From 1 July 2010 to 30 June 2011 the threshold is $658,000.
Employers, or a group of related businesses, whose total Australian wages exceed the current NSW monthly threshold, are required to pay NSW payroll tax.
Monthly threshold:
- 28 days = $50,477
- 30 days = $54,082
- 31 days = $55,885
Each monthly payment or 'nil' remittance is due seven days after the end of each month or the next business day if the seventh day is a weekend (i.e. August payment is due by 7 September). The annual reconciliation and payment or 'nil' remittance is due by 21 July.
Effective July 2007 - In NSW, payroll tax is levied under the Payroll Tax Act 2007 and administered by the Taxation Administration Act 1996.
Prior to 1 July 2007 - In NSW, payroll tax was levied under the Payroll Tax Act 1971 and administered by the Taxation Administration Act 1996.
Queensland
Companies or groups of companies that pay $1,000,000 or more a year in Australian wages must pay payroll tax.There are deductions, concessions and exemptions available to those that are eligible. The current payroll tax rate is 4.75%.
South Australia
A Payroll Tax liability arises in South AustraliaSouth Australia
South Australia is a state of Australia in the southern central part of the country. It covers some of the most arid parts of the continent; with a total land area of , it is the fourth largest of Australia's six states and two territories.South Australia shares borders with all of the mainland...
when an employer (or a Group of employers) has a wages bill in excess of $600,000 for services rendered by employees anywhere in Australia if any of those services are rendered or performed in South Australia.
Western Australia
Payroll Tax is a general purpose tax assessed on the wages paid by an employer in Western Australia.The tax is self-assessed in that the employer calculates the liability and then pays the appropriate amount to the Office of State Revenue, by way of a monthly, quarterly or annual return.
On 8 December 2004 new legislation was passed making it mandatory for an employer that has, or is a member of a group that has, an expected payroll tax liability equal to or greater than $100,000 per annum, to lodge and pay their payroll tax return via Revenue Online (ROL). This amendment to the Payroll Tax Assessment Act 2002 is effective 1 July 2006.
Fringe Benefits Tax
Fringe Benefits Tax is the tax applied by the Australian Taxation OfficeAustralian Taxation Office
The Australian Taxation Office is an Australian Government statutory agency and the principal revenue collection body for the Australian Government. The ATO has responsibility for administering the Australian federal taxation system and superannuation legislation...
to most, although not all, fringe benefits, which are generally non-cash benefits. Most fringe benefits are also reported on employee payment summaries for inclusion on personal income
Income
Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...
tax return
Tax return (Australia)
Australian tax returns for the tax year ending 30 June are generally due on 31 October of the same calendar year. Extensions can be made available. Each year, the Australian Taxation Office publishes TaxPack, a free document designed to help individuals complete their return...
s that must be lodged annually.
Inheritance tax
There is no inheritance taxInheritance tax
An inheritance tax or estate tax is a levy paid by a person who inherits money or property or a tax on the estate of a person who has died...
in Australia, with Australia abolishing what was known as death duties in 1979. However, assets acquired from the estate may become subject to Capital Gains Tax.
When you inherit an asset as a beneficiary of the estate of a person who died on or after 20 September 1985, you must keep special records.
If the asset was acquired by the deceased person before 20 September 1985, you need to know the market value of the asset at the date of the person's death and any relevant costs incurred by the executor or trustee. This is the amount that the asset is taken to have cost you. If the executor or trustee has a valuation of the asset, ask for a copy of that valuation report. Otherwise you will need to get your own valuation.
If the asset you inherit was acquired by the deceased person on or after 20 September 1985, you need to know full details of all relevant costs incurred by the deceased person and by the executor or trustee. Request those details from the executor or trustee. Even if you inherit a house that was the family home of the deceased person, you need to keep records of costs paid by the deceased person in case you are not able to claim a full exemption for the house after you inherit it.
Superannuation taxes
Private pensions (known as superannuation in AustraliaSuperannuation in Australia
Superannuation is a retirement program in Australia. It has a compulsory element whereby employers are required by law to pay an additional amount based on a proportion of an employee's salaries and wages into a complying superannuation fund.An individual's superannuation fund can be accessed...
) may be taxed at up to three points, depending on the circumstances: at the point of contribution to a fund, on investment income and at the time benefits are received. In some circumstances, no tax is applicable at all.
The compulsory nature of Australian Superannuation means that it is sometimes regarded as being similar to social security taxes levied in other nations. This is more frequently the case when comparisons are being made between the tax burden of respective nations.
Taxation history
When the first Governor, Governor Phillip, arrived in New South Wales in 1788, he had a Royal Instruction that gave him power to impose taxation if the colony needed it.The first taxes in Australia were raised to help pay for the completion of Sydney's first gaol and provide for the orphans of the colony. Import duties were put on spirits, wine and beer and later on luxury goods.
After 1824 the Government of New South Wales raised extra revenue from customs and excise duties. These were the most important sources of money for the colony's Government throughout the 19th century. Taxes were raised on spirits, beer, tobacco, cigars and cigarettes.
These taxes would vary between States, or colonies as they were then called. This still persists today.
Colonial governments also raised money from fees on wills and stamp duty, which is a tax imposed on certain kinds of documents.
In 1880 the Colony of Tasmania imposed a tax on income received from the profits of public companies. Four years later, a general tax on income was introduced in South Australia, and in 1895 income tax was introduced in New South Wales at the rate of six pence in the pound.
In 1972 the government of William McMahon
William McMahon
Sir William "Billy" McMahon, GCMG, CH , was an Australian Liberal politician and the 20th Prime Minister of Australia...
appointed the NSW Supreme Court judge
Judge
A judge is a person who presides over court proceedings, either alone or as part of a panel of judges. The powers, functions, method of appointment, discipline, and training of judges vary widely across different jurisdictions. The judge is supposed to conduct the trial impartially and in an open...
Kenneth Asprey
Kenneth Asprey
Kenneth William Asprey was a judge of the New South Wales Court of Appeal, the highest court in the State of New South Wales, Australia, which forms part of the Australian court hierarchy....
to conduct a full and wide ranging review of the tax system. Although controversial when completed for the Whitlam Government
Gough Whitlam
Edward Gough Whitlam, AC, QC , known as Gough Whitlam , served as the 21st Prime Minister of Australia. Whitlam led the Australian Labor Party to power at the 1972 election and retained government at the 1974 election, before being dismissed by Governor-General Sir John Kerr at the climax of the...
in 1975, the Asprey report on taxation has acted "as a guide and inspiration to governments and their advisers for the following 25 years." The main recommendations of the report have all been implemented and are today part of Commonwealth taxation in Australia.
On 20 September 1985, Capital gains tax
Capital gains tax in Australia
Capital gains tax in the context of the Australian taxation system applies to the capital gain made on disposal of any asset, except for specific exemptions. The most significant exemption is the family home...
was introduced.
The GST
Goods and Services Tax (Australia)
The GST is a broad sales tax of 10% on most goods and services transactions in Australia. It is a value added tax, not a sales tax, in that it is refunded to all parties in the chain of production other than the final consumer....
replaced the older wholesale sales tax in 2000.
In July 2001, the Financial Institutions Duty
Financial Institutions Duty
Financial Institutions Duty was a duty levied by Australian states and territories, except Queensland, on deposits to bank accounts, term deposits, and similar....
was abolished.
Between 2002 and 2005, Bank Account Debits Tax
Bank Account Debits Tax
Bank Account Debits Tax was an Australian tax levied on customer withdrawals from bank accounts with a cheque facility ....
was abolished.
See also
- Bottom of the harbour tax avoidanceBottom of the harbour tax avoidanceBottom of the harbour tax avoidance was a form of tax avoidance used in Australia in the 1970s. Legislation made it a criminal offence in 1980...
- Cherry-picking tax avoidance
- Negative gearing (Australia)Negative gearing (Australia)Negative gearing is a form of financial leverage where an investor borrows money to buy an asset, but the income generated by that asset does not cover the interest on the loan...
- Office of State Revenue (New South Wales)Office of State Revenue (New South Wales)The Office of State Revenue has responsibility for New South Wales taxes. The Office of State Revenue is one of two NSW Treasury offices. The other is the Office of Financial Management . OFM is responsible for State Government accounting, banking, funding and economic advice.OSR administers...
- Salary packagingSalary packagingSalary packaging is a term used to refer to the inclusion of fringe benefits in the remuneration package of an employee, in exchange for giving up part of their monetary salary.-Salary sacrifice in UK:...
- Tax File NumberTax File NumberTax File Number is an 8 or 9 digit number issued by the Australian Taxation Office to each taxpayer to identify that taxpayer's Australian tax dealings. When it was introduced in 1988, individuals received a 9 digit TFN and non-individuals were issued an 8 digit TFN. Now both are issued 9 digit...
- Tax return (Australia)Tax return (Australia)Australian tax returns for the tax year ending 30 June are generally due on 31 October of the same calendar year. Extensions can be made available. Each year, the Australian Taxation Office publishes TaxPack, a free document designed to help individuals complete their return...
- Tax Institute (Australia)Tax Institute (Australia)The Tax Institute, formerly the Taxation Institute of Australia, is a member-based association of tax professionals in Australia. Members include accountants, lawyers and academics....
- Darwin RebellionDarwin RebellionThe Darwin Rebellion of 17 December 1918 was the culmination of unrest in the Australian Workers' Union which had grown between 1911 and 1919. Led by Harold Nelson, some 1000 demonstrators marched on Government House at Liberty Square in Darwin, Northern Territory, Australia where they burnt an...
Tax law:
- Constitutional basis of taxation in AustraliaConstitutional basis of taxation in AustraliaThe constitutional basis of taxation in Australia is based on a group of powers in the Australian Constitution: sections 51, section 90, section 53, section 55, and section 96...
- Australian Bank Notes Tax Act 1910Australian Bank Notes Tax Act 1910The Bank Notes Tax Act of 1910 effectively ended the era of private currency in Australia.It is a federal law that imposes on all bank issued currency a tax of ten per cent...
Related:
- Australian federal budget
- Australian economyEconomy of AustraliaThe economy of Australia is a developed, modern market economy with a GDP of approximately US$1.23 trillion. In 2011, it was the 13th largest national economy by nominal GDP and the 17th largest measured by PPP adjusted GDP, representing about 1.7% of the World economy. Australia was also ranked...