1. Basis of Taxation
Australia’s income tax year runs from 1 July to 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)
|
Resident |
Non-resident Individual/Corporation |
Dividends |
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% |
* If franked dividend then WHT rate is nil.
**Substantial property rental may constitute a permanent establishment.
*** Management fees and technical fees may be subject to transfer pricing rules.
4. Residential individual tax rates for 2008/2009
Taxable Income ($) |
Tax Rate |
$0-$6,000 |
NIL |
$6,001 - $34,000 |
15% |
$34,001 - $80,000 |
30% |
$80,001 - $180,000 |
40% |
$180,001+ |
45% |
5. Non-residential individual tax rates for 2008/2009
Taxable Income ($) |
Tax Payable (%) |
$0 - $34,000 |
29% |
$34,001 - $80,000 |
30% |
$80,001 - $180,000 |
40% |
$180,001 + |
45% |
6. Goods and Services tax
- GST is a broad-based tax of 10% and applies to goods and services provided by taxpayers in furtherance of an enterprise
- GST registration is compulsory where annual turnover is greater than $75,000 (or $150,000 for non profit organization)
7. Estate duty
- Estate duty has been abolished in Australia
8. Stamp duty
- Unlike income tax, stamp duty is a “state-based tax” and imposed by each of the six States and two Territories on wide range of commercial transactions including, property transfer (real property and unlisted shares), insurance contracts, loan securities and leasing and hiring arrangement.
- Stamp duty transactions and stamp duty rates may differ depending on jurisdiction.
- As an example, stamp duty on property or business asset transfers in NSW are subject to the following rates of duty:
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 |
9. Land Tax for year ended 31 December 2007
New South Wales
Taxable Value |
Land Tax Rates |
$0- $359,000 |
Nil |
$359,000 or more |
1.6% of excess over $359,000 plus $100 |
Victoria
Taxable Value |
Land Tax Rates |
| 0 - $224,999 |
Nil |
$225,000- $539,999 |
$250 plus 0.2% of excess over $225,000 |
$540,000 - $899,999 |
$880 + 0.5% of excess over $540,000 |
$900,000 - $1,619,999 |
$2,680 + 0.8% of excess over $900,000 |
$1,620,000- $2,699,999 |
$8,440 + 1.3% of excess over $1,620,000 |
$2,700,000 or more |
$22,480 + 2.5% of excess over $2,700,000 |
*Land tax liability will also arise for land situated in Queensland, South Australia, Western Australia, Tasmania and Australian Capital Territory. There is no land tax liability for land situated in the Northern Territory.
10. Income tax filing deadlines for 2007/2008 year
Types of Form |
Entity |
Deadlines* |
2008 Income Tax Return |
Individual (resident) |
31 October 2008 |
2008 Income Tax Return |
Individual (non resident) |
31 October 2008 |
2008 Income Tax Return |
Company |
Refer below** |
2008 Income Tax Return |
Partnerships |
31 October 2008 |
* Filing dates may be extended or vary for entity where lodged by tax agent.
** For a company, the lodgment date varies depending on level of tax payable.
11. Double Tax Agreements.
Certain payments by Australia residents to non-residents are subject to domestic withholding tax rates. The rates of taxes may be reduced under the terms of a double tax agreements with a treaty country as listed below.
Treaty
Country |
Interest % |
Dividend % |
Royalties % |
Argentina |
10/12 |
15 |
10 |
Austria |
10 |
15 |
10 |
Belgium |
0/10 |
15 |
10 |
Brazil |
10 |
30 |
30 |
Canada |
10 |
15 |
10 |
China |
10 |
15 |
10 |
Denmark |
10 |
15 |
10 |
Finland |
10 |
15 |
10 |
France |
10 |
15 |
10 |
Germany |
10 |
15 |
10 |
Hong Kong |
10 |
30 |
30 |
India |
10/15 |
15 |
15/20 |
Indonesia |
10 |
15 |
15 |
Ireland |
10 |
15 |
10 |
Italy |
10 |
15 |
10 |
Japan |
10 |
15 |
10 |
Luxembourg |
10 |
30 |
30 |
Malaysia |
10/15 |
15 |
10 |
Mexico |
10/15 |
15 |
10 |
Netherland |
10 |
15 |
10 |
New Zealand |
10 |
15 |
10 |
Norway |
10 |
15 |
10 |
Papua New Guinea |
10 |
15 |
10 |
Philippines |
10/15 |
25 |
10/25 |
Russia |
10 |
5/15 |
10 |
Singapore |
10 |
15 |
10 |
South Africa |
10 |
15 |
15 |
Spain |
10 |
15 |
10 |
Sweden |
10 |
15 |
10 |
Switzerland |
10 |
15 |
10 |
Taiwan |
10 |
10/15 |
12.5 |
Thailand |
10/25 |
5/20/30 |
15 |
United Kingdom |
0/10 |
0/5/15 |
5 |
United States |
10 |
0/5/15 |
5 |
Vietnam |
10 |
30 |
30 |
Non Treaty
Interest % |
Dividend % |
Royalties % |
10 |
30 |
30 |
|
