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.
Taxation advice is a core function of our professional services
We are ready to assist you with the following:
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.
Income 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.