Australia Tax Guide

Australia

Currency: Australian Dollar

Foreign Exchange Control: None

Accounting Principles: Australian IFRS (A-IFRS). Financial statements filed annually.

Business Entities: Principally, private and publically traded companies, partnerships, corporate limited partnership and branch of a foreign corporation.

Corporate Taxation

Residence: If incorporated in Australia or central management or control is based in the country.

Basis: Residents are taxed on their worldwide income and non-residents are taxed on Australian-source income only.

Rate: 30%.

Foreign Tax: Tax credits available.

Other: R&D activities receive beneficial treatment. Special tax rules for managed investment trusts (MIT).

Tax Year: 1st July to 30th June

Personal Taxation

Residence:  Residents taxed on worldwide income, non-residents taxed on foreign income only. Temporary residents taxed on worldwide employment income and Australian-source investment income (resident if normally reside in Australia and satisfy at least one of three statutory tests)

Rate: Progressive up to 45%

Capital Gains: Applies only to property disposed of by foreign investors since 12th December 2006. Different schedules apply to dates prior to this.

Other: Stamp duty: up to 7% depending on state on transfer of real or business property.

Social security: Employers 9.25% plus a levy for Medicare based on income.

VAT: Standard rate 10%

Member Firm:  Foster Raffan

Emails:
Doug Wood:  dougw@fosterraffan.com.au
Vivien Tang: vivient@fosterraffan.com.au