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Home » Tax in Different Regions » Taxation in Australia
 

Taxation in Australia
The system of taxation in Australia is something very interesting and unique. Australia imposes tax on various disciplines like personal earnings, capital gains and business income. Taxable income is determined by deducting allowances against the income of a taxable agent. Get comprehensive insight on various methods of taxation in Australia from the pages of taxinfohub.com.

Personal income tax is a popular methods of taxation in Australia leading to huge revenue income of the government. It is the federal government who imposes tax on the government. The Financial or Income tax Year in Australia extends from July 1st of one year to June 30 of the coming year. Personal income tax is a kind of progressive tax where the high income groups pay greater taxes than the lower income groups. AUD6,000 is the current tax-free threshold and the highest marginal rate for individuals is 45% . The income taxes are deducted from wages and salaries. A nine-digit tax file number is used fro calculating various tax brackets. Employers deduct tax at the highest marginal rate from the first dollar if there isn't any income tax number. The banks deduct income tax at the highest maximum on interest earned on bank accounts in the absence of tax file number of the individual. Corporate taxpayers also offer their tax file number or "Australian Business Number" to the bank. If not, the bank will deduct the income tax at the highest available rate. Corporate taxes are also paid by the companies when they incur profit. Corporate taxes are deducted at a flat 30% rate. Tax is paid on the business income and after that it is dispersed to individual shareholders in the form of dividends.

Goods and service tax is a multi-stage tax levied by the federal government at a rate of 10%. The tax is entitled on goods and services registered under Goods and Services Tax(GST) . The revenue gathered from the tax is allocated to various states. The state government do not levy any sales tax instead they stamp duties on various transactions. Property taxes are charged by the local government on commercial and residential properties. Fire Service Levies are imposed on domestic house insurance and business insurance contracts in order to fund the fire services of the government. Excise taxes are charged on inelastic goods like alcohol, cigarettes and petrol. Though the system of inheritance tax is not available in Australia still the amount collected from the properties are known as Capital Gains Tax. The market value and the relevant cost of the property acquired by a dead person prior 20 September 1985, is determined in order to make valuation of the asset. Private pensions are a part of superannuation taxation in Australia. The taxation depends on fund contribution, investment income the receipt of benefits.

The site taxinfohub.com provides comprehensive insight on taxation in Australia.