Taxes In Australia

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The tax system in Australia is relatively straightforward compared to many other countries in the World.

Sales Taxes In Australia
In line with most other Countries in the World (save for a few exceptions) the Australian Government levies a General Sales Tax against all goods and services sold. In Australia is it known as the GST (similar to VAT, IVA etc)
(Goods and Services Tax) and is added at a modest 10%.

Personal Taxes In Australia
Benjamin Frankin once said, “The only certainties in life are death and taxes”

The Australian tax year is between 1st July and 30th June and every working resident who has declared earnings from investments or employment must have a tax number in order that income taxes can be decuated at the correct rate. The team at Lets Go! Global can arrange your Australian Income Tax number for you (known as the TFN). We can also arrange a dedicated tax advisor Consultation prior to your emigration.

Income tax in Australia is calculated on a tiered basis and is charged once income reaches $18,200 Australian Dollars and a 1.5% Medicare levy is also deducated at this point.

All taxpayers in Australia must complete their “TaxPack” by the end of October each year which is essentially a self assessment process for declaring income and allowances. Many Australian residents living abroad continue to file their TaxPack to ensure they remain eligible to move back to Australia should they wish at some point in the future. Technically Australian residents must declare and pay taxes on income even if that income is derived overseas however Australia also has numerous double taxation treaties in place to prevent cases of ‘double taxation’.

Residents who are Self Employed complete a Business Activity Statement (BAS) every three months. You may hear this referred to as a “Pay As You Go” system and accounts for GST, business tax, and superannuation payments.

Investment income also comes under the Pay As You Go system, with the additional requirement of producing a quarterly Instalment Activity Statement and then paying tax due on investment income greater than $2000. Capital Gains Tax (CGT) is included in assessable income and taxed at the highest rate of tax. However, assets held for at least a year are eligible for a 50% reduction in liability.

Australian Income Tax Rates
Taxable income: 0 – $18,200
Tax on this income: 0%
Essective Tax rate: 0%

Taxable income: $18,201 – $37,000
Tax on this income: $0.19 for every $1 over $18,200
Essective Tax rate: 9.7%

Taxable income: $37,001 – $80,0000
Tax on this income: $3,572 + $0.325 for each $1 over $37,000
Essective Tax rate: 9.7% – 21.9%

Taxable income: $80,001 – $180,000
Tax on this income: $17,547 + $0.37 for each $1 over $80,000
Essective Tax rate: 21.9% – 30%

Stamp Duty in Australia
Australian Stamp Duty is payable on all the usual transactions such as property, vehicles, equities and life assurance differes according to the underlying transaction. It is not levied at Government Level but on a State by State basis.

Use our Currency Converter to calculate your income in Australian Dollars