Country Trading Profiles Australia - Taxes

Tax Rates

Nature of the tax: GST : Goods and Services tax
Tax rate: A rate of 10% of Good and Services Tax (GST) is applicable when selling or buying most goods and services in Australia and when importing into Australia (which includes Customs valuation, Customs tax, transport and transport insurance if it is not already included in the Customs valuation).
Reduced tax rate: Some products and services may be GST free but none are GST reduced.
Other consumption taxes: None

Corporate tax	30%
Fringe Benefit Tax	46.5% on the value of fringe benefits granted to staff
Payroll Tax	Between 3.65% and 6.85% of the global company payroll (however, small companies are generally exempted).
Dividends	Generally 30%. 5 to 15% for treaty country and depending on the number of shares held.

Tax rate for foreign companies: Resident companies are taxed on all their profits worldwide at a rate of 30%. Non-resident companies are taxed in their country of origin.
Capital gains taxation: Capital gains on assets held by an Australian company and long term capital gains are taxed, in principle, when they are realized at the Corporate tax rate, i.e. 30%.
Main allowable deductions and tax credit: There are tax incentive measures on investment in equipment and investment of capital.
According to the nature and the size of the investment project, the governments of the States can, for a limited period, grant tax aid in the form of tax relief on payroll tax, stamp duty or land tax. For further information, consult the Department of Innovation, Industry, Science and Research website.
Other corporate taxes: Stamp duty: all the Australian States and Territories subject certain transactions to Stamp Duty at rates which vary according to the transaction.
Land tax is collected by each State on the non-revalued value of land, at progressive rates.
Payroll tax is collected from employers. This tax is specific to each State, and its rates and conditions of payability vary according to the State. Payrolls under a certain threshold are exempted (in the State of New South Wales AUD 500,000 ).

Individual tax rate	Progressive rate
AUD 1 - 6,000	0
AUD 6,001 - 35,000	15 cts for each AUD 1 over 6000 AUD
AUD 35,001 - 80,000	AUD 4,350 + 30 cts for each AUD 1 over 35 000 AUD
AUD 80,001 - 180,000	AUD 17,850 + 38 cts for each AUD 1 over 80 000 AUD
AUD 180,001 and over	AUD 55,850 + 45 cts for each AUD 1 over 180 000 AUD
Fringe Benefit Tax, FBT	Click here for more information.

Allowable deductions and tax credit: Professional expenses, subscriptions to professional reviews, training, expenses related to travel (professional activities), driving expenses for professional activities, gifts and donations and expenses related to clothing for certain professions.
Special expatriate tax regime: For expatriates, it is advisable to look into questions related to tax residence and to set up tax optimization schemes especially to limit taxation on certain allowances, such as the Living Away From Home Allowance (LAFHA).
Tax exemptions for income from abroad for temporary residents, which includes also capital gains, exist in Australia.

Countries with whom a double taxation treaty have been signed: DTA with Australia.
Withholding taxes: Withholding tax rates are 30% (between 5 and 15% for treaty countries) for dividends, 10% for interests and 30% for royalties
Bilateral agreement

Tax Authorities: ATO
Other domestic resources: Austrade website, including information on tax (previously Invest Australia)
Government portal on tax information

Tax year: The tax year begins on 1 July and ends on 30 June. If necessary, after lodging a special authorisation to the ATO, calendar year can be used as tax-year.
Accounting standards: Accounting Standards in Australia (AAS Standards pre 2005). Australian accounting standards, which are legally binding under the Corporations Act, are equivalent to International Financial Reporting Standards (IFRSs).
Accounting regulation bodies: AASB
Accounting reports: Certification of accounts concerns the following accounting reports: the Statement of Financial Performance & Position or Balance sheet, i.e. the the company's statement of accounts, and the Profit and Loss Statement of the financial year certified.
Publication requirements: Reporting is carried out yearly.
Professional accountancy bodies: CPA
ICAA
NIA
ASIC
FRC
Certification and auditing: The companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization.
You can contact the Australian Auditing and Assurance Standards Board or an external auditor: PWC, Deloitte (en anglais), KPMG.
Accounting news: Chartered Accountants website