Taxation Law & Lawyers

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 governments. Taxes are collected to pay for public services and transfer payments.

If you need legal help regarding any aspect of tax law, then please complete your free legal enquiry form on the right, or click here.

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.

If you need legal help regarding tax law, then please complete your free legal enquiry form on the right, or click here.

Taxes are levied by all 3 tiers of government. Major taxes such as income tax (both personal and company), goods and services tax, and customs and excise duties are raised by the federal Government. State governments levy taxes such as land tax, payroll tax and stamp duty on conveyancing transactions. Local governments raise taxes such as council rates.

Administration of taxation in Australia is carried out by the Australian Taxation Office or the ATO. The ATO is the primary revenue collector. It is reckoned that the ATO collects 92 percent of the revenue earned by the federal government.

Different types of taxes in Australia are levied for:

• Businesses
• Individuals
• Government
• Superannuation
• Tax professionals

If you need legal help regarding any aspect of tax law, then please complete your free legal enquiry form on the right, or click here.

Different types of taxes in Australia are as follows:

Superannuation taxes

Superannuation is a pension program in Australia. In this a superannuation fund is formed by contributions from the employer. The employer saves a part of the employees' salary into the fund. After retirement the fund is collected and made available to the employee along with additional incentives, which the employee is entitled to get for keeping the money with the employer. So, taxes are usually charged at three points. These three points are sometimes known as “three pillars”. As per budget of 2007-2008, one need not pay taxes on the superannuation earnings if the age of the individual is 60 years. In other cases, a flat rate of 15 percent is levied on the superannuation funds.

Corporate Taxes

The corporate taxes in Australia are imposed at 30 percent flat rate. Corporates as well as companies are required to pay tax to the federal government in Australia for profits earned. Prior to the distribution of profits (as dividends) amongst the shareholders, the corporate tax is paid to the government. Franking credit, which is tax credit in Australia is made available to the shareholders so that they can see the corporate tax, which has already been paid. This procedure is known as dividend imputation.

Goods And Services taxes

The government in Australia imposes 10 percent tax on supply of services as well as goods. This tax is usually levied on individuals who have registered for Goods And Services Tax or GST. Supplies like exports, food products, medical services, services related to education are free from paying the GST tax. They may be taxed on inputs like financial services, accommodation (residence). The revenues, which are earned from Goods and Services tax are distributed among the states. Stamp duties are imposed by the government on different types of transactions. However, federal government in Australia, do not impose sales tax on certain transactions.

If you need legal help regarding any aspect of tax law, then please complete your free legal enquiry form on the right, or click here.

Capital Gains Tax

Capital gain - or capital loss - is the difference between what it cost you to get an asset and what you received when you disposed of it.

You pay tax on your capital gains. It's not a separate tax, just part of your income tax, although it is generally referred to as capital gains tax (CGT).

If you make a capital loss, you cannot claim it against income but you can use it to reduce a capital gain in the same income year. If your capital losses exceed your capital gains or you make a capital loss in an income year you don't have a capital gain, you can generally carry the loss forward and deduct it against capital gains in future years.

All assets you've acquired since tax on capital gains came into effect (on 20 September 1985) are subject to CGT unless specifically excluded.

Selling assets such as real estate or shares is the most common way you make a capital gain or capital loss. CGT also applies to intangible assets such as business goodwill.

Some of your main personal assets are exempt from CGT, including your home, car, and most personal use assets, such as furniture. CGT also doesn't apply to depreciating assets used solely for taxable purposes, such as business equipment or fittings in a rental property.

If you're an Australian resident, CGT applies to your assets anywhere in the world.

If you need legal help regarding any aspect of tax law, then please complete your free legal enquiry form on the right, or click here.

Excise tax

Excise taxes are levied by the federal government on petrol, cigarettes, alcohol. These are referred to as in elastic goods. These are known as inelastic goods because the demand for these goods is always there even if there is an increase in the prices if these commodities.

Property Taxes

States governments depend largely on property taxes for carrying out different activities. Property taxes from commercial complexes, industrial houses and residential complexes fund the state governments. There are times when the local governments impose tax on value of land. Taxes imposed on value of the land is mainly applicable to properties of very high value. Stamp duties are imposed by the state governments on land transfers and other such transactions. Taxes are also levied on fire services. This is applicable for insurance contracts pertaining to domestic set ups as well as businesses. These taxes earned from this sector helps in funding the various activities of the fire department.

Payroll taxes

Payroll taxes are imposed by the state government, the rates of which differ under different circumstances.

Income tax

Different types of taxes in Australia also include income taxes. Income taxes form the main sources of revenue for funding the different activities of the government, especially the federal government. Income tax is levied on individuals who fall under the taxable group of people. The idea of income tax took birth in Tasmania in 1880. During that period tax was imposed to collect money from the people of Tasmania, as the government in Australia was not in a good state. Thereafter, income tax was levied on the income of the people residing in Southern regions of Australia. By 1907, income tax was levied on the income of almost all individuals residing in all the states of Australia. Low Income Tax Offset, Family tax benefit as well as capital gains tax are the different categories of income tax levied on income of individuals along with personal income taxes.

If you need legal help regarding any aspect of tax law, then please complete your free legal enquiry form on the right, or click here.

Links to Further Resources - Taxation Law & Lawyers