1. Basis of Taxation
The Australian income tax year commences on 1 July and ends on 30 June. Australian residents are taxed on their worldwide income whereas non residents are only taxed on their Australian sourced income.
2. Corporate Tax
The Australian corporation tax rate is 30%.
3. Withholding tax rate (non-treaty)
Class of Income |
Resident |
Non-resident Individual/Corporation |
Dividend |
NIL |
30%* |
Interest |
NIL |
10% |
Royalties/know-how |
NIL |
30% |
Rents (for moveable property) |
NIL |
NIL** |
Management fees |
NIL |
NIL*** |
Technical fees |
NIL |
NIL*** |
Directors’ fees |
NIL |
0% - 45% |
*Where a franked dividend is paid to a non resident the withholding tax rate is nil.
**Substantial rental property may constitute a permanent establishment and therefore subject to Australian tax.
*** Management fees and technical fees paid to a non resident related party would be subject to transfer pricing rules.
4. Resident personal income tax rates from 1 July 2010
Taxable Income ($) |
Tax Rate |
$0-$6,000 |
NIL |
$6,001 - $37,000 |
15% |
$37,001 - $80,000 |
30% |
$80,001 - $180,000 |
37% |
$180,001+ |
45% |
5. Non resident personal income tax rates from 1 July 2010
Taxable Income ($) |
Tax Payable (%) |
$0 - $37,000 |
29% |
$37,001 - $80,000 |
30% |
$80,001 - $180,000 |
37% |
$180,001 + |
45% |
6. Goods and Services tax
- GST is a broad-based consumption tax of 10% and applies to goods and services supplied by a taxpayer in the course of furtherance of an enterprise.
- GST registration is compulsory where the annual turnover of a taxpayer is greater than $75,000 (or $150,000 for a non-profit organization).
7. Stamp duty
- Stamp duty is imposed by the States and Territories of Australia on a wide range of commercial transactions including, transfers of property (real property and unlisted shares), insurance contracts, loan securities and leasing.
- Dutiable transactions and duty rates may differ depending on the jurisdiction.
- New South Wales conveyance duty rates on the transfer of property or business assets situated in New South Wales are set out below.
Purchase Value |
New South Wales Conveyance Duty |
$0 - $14,000 |
1.25% of dutiable value |
$14,001 - $30,000 |
$175 + 1.5% of excess over $14,000 |
$30,001 - $80,000 |
$415 + 1.75% of excess over $30,000 |
$80,001 - $300,000 |
$1,290 + 3.5% of excess over $80,000 |
$300,001 - $1 million |
$8,990 + 4.5% of excess over $300,000 |
> $1 million |
$40,490 + 5.5% of excess over $1,000,000 |
8. Land Tax
- Land tax is imposed on the owner of the land at 31 December for land tax purposes.
- Land tax is imposed in all Australian States and the Australian Capital Territory but not in the Northern Territory.
- Land tax rates for New South Wales and Victoria are set out below.
New South Wales Land Tax Rates for the year ended 31 December 2009
Taxable Value |
Land Tax |
$0- $376,000 |
Nil |
$376,001 - $2,299,000 |
1.6% of excess over $376,000 plus $100 |
>$2,299,000 |
2% of excess over $2,299,000 |
Victoria Land Tax Rates for the year ended 31 December 2009
Taxable Value |
Land Tax Rates |
- $250,000
|
Nil |
$250,000- $600,000 |
$275 + 0.2% of excess over $250,000 |
$600,000 - $1,000,000 |
$975 + 0.5% of excess over $600,000 |
$1,000,000 - $1,800,000 |
$2,975 + 0.8% of excess over $1,000,000 |
$1,800,000- $3,000,000 |
$9,375 + 1.3% of excess over $1,800,000 |
$3,000,000 or more |
$24,975 + 2.25% of excess over $3,000,000 |
9. Income tax filing lodgment deadlines for the year ended 30 June 2009
Types of Form |
Entity |
Deadlines* |
2010 Income Tax Return |
Individual (resident) |
31 October 2010 |
2010 Income Tax Return |
Individual (non resident) |
31 October 2010 |
2010 Income Tax Return |
Company |
Refer below** |
2010 Income Tax Return |
Partnerships |
31 October 2010 |
* Filing dates may be extended or varied for an income tax return lodged by a tax agent.
** For a company, the lodgment date varies depending on the level of tax payable.
11. Double Tax Agreements.
Broadly, payments of dividends, interest or royalties by an Australia resident to a non-resident are subject to Australian withholding tax. However, the withholding tax rates are reduced where Australia has entered into a double tax agreement with a country in which the recipient of these payments is a resident of that country.
Non Treaty Country |
Interest WHT Rate |
Unfranked Dividend WHT Rate |
Royalty WHT Rate |
|
10% |
30% |
30% |
Treaty Country |
Interest WHT Rate |
Unfranked Dividend WHT Rate |
Royalty WHT Rate |
Argentina |
10 |
15 |
10 |
Austria |
10 |
15 |
10 |
Belgium |
10 |
15 |
10 |
Canada |
10 |
15 |
10 |
China * |
10 |
15 |
10 |
Czech Republic |
10 |
15 |
10 |
Denmark |
10 |
15 |
10 |
East Timor |
10 |
15 |
10 |
Fiji |
10 |
20 |
15 |
Finland |
10 |
0/5/15 |
5 |
France |
10 |
5/15 |
5 |
Germany |
10 |
15 |
10 |
Hungary |
10 |
15 |
10 |
India |
10 |
15 |
10/15/20 |
Indonesia |
10 |
15 |
10/15 |
Ireland |
10 |
15 |
10 |
Italy |
10 |
15 |
10 |
Japan |
10 |
0/5/10 |
5 |
Kiribiti |
10 |
20 |
15 |
Korea |
10 |
15 |
15 |
Malaysia |
10 |
15 |
15/30 |
Malta |
10 |
15 |
10 |
Mexico |
10 |
15 |
10 |
Netherland |
10 |
15 |
10 |
New Zealand |
10 |
5/15 |
10 |
Norway |
10 |
0/5/15 |
10 |
Papua New Guinea |
10 |
15 |
10 |
Philippines |
10 |
15/25 |
15/25 |
Poland |
10 |
15 |
10 |
Romania |
10 |
15 |
10 |
Russia |
10 |
15 |
10 |
Singapore |
10 |
15 |
10 |
South Africa |
10 |
5/15 |
15 |
Spain |
10 |
15 |
10 |
Sweden |
10 |
15 |
10 |
Sri Lanka |
10 |
15 |
10 |
Switzerland |
10 |
15 |
10 |
Taiwan |
10 |
15 |
12.5 |
Thailand |
10 |
15/20 |
15 |
United Kingdom |
0/10 |
0/5/15 |
5 |
United States |
0/10 |
0/5/15 |
5 |
Vietnam |
10 |
15 |
10 |
* - Not including Hong Kong and Macau.
Note: Under the Australian conduit foreign income (CFI) rules where certain types of foreign income (including exempt dividends and other foreign taxed income) paid to and then on paid by Australian companies to their non-resident shareholders will not attract any withholding tax or other income tax implications in Australia for the non-residents.
This publication has been prepared for the purpose of quick information dissemination to our counterparts in other Countries. Its contents should not be used as a basis for advice or formulating decisions under any circumstances.
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