Taxation Accountants Melbourne

Expert taxation planning, accounting and reporting

Australia’s taxation legislation is increasingly becoming more complex and demanding. Business owners and personal investors in particular need an experienced accountant with up-to-the-minute knowledge to take the headache out of tax accounting and ensure maximum available deductions, concessions, rebates and exemptions are enjoyed.

Billings + Ellis, Accountants South Melbourne

Taxation advice is a core function of our professional services

We are ready to assist you with the following:

  • Individual taxation returns

    Timely preparation and submission of personal income tax returns with an eye for maximum available deductions and benefits to be claimed.

  • Small business tax returns through companies, fixed and discretionary trusts, and partnerships

    Whatever the nature of your business structure, we can take care of all reporting and lodgment requirements efficiently and economically.

  • Annual, quarterly or monthly GST returns (BAS)

    Reporting and lodgment of business activity statements is timely and hassle-free with the help of B+E.

  • Fringe benefits taxation returns (FBT)

    We can help take the pain and hassle out of fringe benefits taxation reporting and claiming.

  • Taxation for self-managed superannuation funds (SMSF)

    Administration of SMSF taxation requirements based economically on real value of work rather than nominal percentages.

  • Taxation advice and research

    Up-to-the-minute knowledge of tax legislation combined with research and liaison for special business or industry cases.

Introduction to the Australian taxation system

Income taxes are the most important form of taxation in Australia. These taxes are collected by the Federal Government through the Australian Tax Office (ATO), and then paid to the states under a distribution formula determined by the Commonwealth Grants Commission. Income tax is levied upon three sources of income for individual taxpayers:

  • Personal income (eg: salaries and wages)
  • Business income
  • Capital gains

Together, the above three sources of income tax account for 67% of federal government revenue and 55% of total revenue across the three tiers of government.

Tax rates

Accounting News bulletinIncome tax on personal income is a progressive tax, such that the more you earn, the higher your rate of tax. The current tax-free threshold is $18,200, and the highest marginal rate for individuals is 45%. Like in many other countries, income tax is withheld from wages and salaries in Australia.

Companies and corporations are required to pay company tax on profits. Unlike personal income taxes which use a progressive scale, corporate taxes are calculated at a flat 30% rate.

Capital gains tax (CGT) applies to the capital gain made on disposal of any asset, except for specific exemptions (e.g, family home). Net gains are treated as taxable income in the tax year an asset is sold. Thus, if an asset is held for at least one year then any gain is first discounted by 50% for individual taxpayers, or by 33.3% for superannuation funds.

Other forms of taxation

The Federal Government imposes a value added tax of 10% on the supply of most goods and services by entities registered for Goods and Services Tax (GST). The revenue from this tax is distributed to the States. Although State governments do not levy any sales taxes, they collect stamp duties on a range of transactions. Moreover, the Federal Government collects excise taxes on goods such as alcohol, cigarettes, and petrol.

Local governments typically get most of their funding through taxes on land value on residential, industrial and commercial properties. In addition, some State governments levy tax on land values for investors and primary residences of high value. The State governments also impose stamp duties (on transfers of land and other similar transactions) and fire service levies (applied to domestic house insurance and business insurance contracts).

Taxation accountant in South Melbourne? That’s Billings+Ellis.

We have the expertise to cover a broad range of taxation issues and can provide quality taxation advice in a timely and meaningful manner. We provide all essential taxation services including taxation planning, a key consideration of any successful business. Contact us today for a free initial consultation.