Corporate taxation in Australia includes income tax, GST, import duties, and export duties. The tax rates and laws for each type of tax vary depending on the industry and the type of goods and services involved. Companies operating in Australia should be aware of these tax laws to ensure compliance and to minimize their tax liability.
Income tax is levied on the taxable income earned by companies in Australia. The income tax laws are governed by the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997. The tax rates for companies are as follows:
- For small businesses with an annual turnover of less than AUD 50 million, the tax rate is 27.5%.
- For companies with an annual turnover of AUD 50 million to AUD 250 million, the tax rate is 30%.
- For companies with an annual turnover of over AUD 250 million, the tax rate is also 30%.
Goods and Services Tax (GST):
The GST is a value-added tax that is levied on the supply of goods and services in Australia. The GST law is governed by the A New Tax System (Goods and Services Tax) Act 1999. The standard GST rate is 10%. However, there are different GST rates for different goods and services. For example, basic food items are GST-free, while luxury items such as yachts and aircraft are subject to a luxury car tax.
Australia does not have a separate sales tax. The GST is the primary consumption tax in Australia, which is levied on both goods and services.
Import duties are levied on goods that are imported into Australia. The Customs Act 1901 governs the import duties in Australia. The import duty rates depend on the type of goods that are being imported. There are different rates for different types of goods, ranging from 0% to 10%.
There are currently no export duties in Australia.