Income tax in Australia

Income tax in Australia is collected by the Australian federal government and makes about half of the total government revenue from. For individuals, the tax rate is progressive, in company, he is a uniform 30%.

History

First led Tasmania, then still a British colony in 1880 an income tax, followed by South Australia 1884. 1907 all states had introduced an income tax, but every state had its own tax law. In 1915, an income tax at the federal level was introduced, but the taxes of the individual states were initially made ​​. Starting in 1936, the tax law of each state was adjusted to each other. 1942, a law was passed by the federal government, which increased the federal income tax and the same for states that abolished their tax, compensation payments provided for. This meant that by and by all states abolished their income tax. In 1985, the tax on capital gains (capital gains tax ) has been introduced.

Individuals

Tax base and tax rate

In determining the tax base for individuals two basic types of income are distinguished:

• Ordinary income consisting of income from employment or self-employment ( personal income and business income )
• Statutory income consisting of income from capital assets ( capital gains ) and other income

Their sum is basically the taxable income ( taxable income). The tax rate on this income is progressive. Regardless of the level of income, there is a basic allowance of 18,200 Australian dollars (AUD ). For every dollar that income -border gradually a marginal tax rate of 19 to a maximum of 45 percent is levied. In addition, as a rule nor a compulsory levy on the health care system ( Medicare Levy ) in the amount of 1.5%.

As in other countries also, the income tax is already paid for (usually monthly ) payment of salary to the Treasury. To settle this serves the personal tax number of the taxpayer ( Tax File Number, short TFN), which must notify his employer of workers. If he fails to do so, the maximum tax rate of 45% is applied.

The fiscal year is based starts in Australia from 1 July to 30 June of the following year. At the end of the tax year, the taxpayer may apply for tax refund ( tax return ) Post, in which he can make special costs and exemptions claimed.

Investment income

In the calculation of taxable income from capital assets several special rules and exceptions exist. Thus, only half of the profit is counted as taxable income, for example, in investments that were longer than 12 months in possession. Profits from the sale of a home are exempt from the tax. Inheritances also not subject to the tax liability, in Australia, there is also no separate inheritance tax. Further gains can be offset against losses from previous years.

An imputation of double taxation is avoided in capital income from domestic investments. In addition, Australia has concluded with a number of countries, double taxation agreements.

Further coupled to the income taxes

Medicare Levy

The Medicare Levy is a tax on the health care system in the amount of 1.5 % of income. People with very low annual incomes are quite (up to 18,839 AUD, about 15,000 € ) or partially (up to 22,163 AUD, about € 17,800 ) exempt from the tax, slightly higher exemption limits exist for pensioners and families. Even residents of Norfolk Island are exempt from the Medicare Levy.

Flood Levy

The Flood Levy is a tax that is levied in the fiscal year 2011-12 due to the floods in Queensland 2010/2011. It amounts to an income of 50,000 AUD 0.5 %, from 100,000 AUD 1%. Persons who are directly affected by the disaster are exempt from the tax.

Business

The income tax rate for companies has fallen steadily in Australia since 1940 (then 45-47 %) and is currently at 30%.

For pension funds ( superannuation funds ), a reduced income tax rate of 15%. Other special schemes as there in fact a tax rate of around 6.5%.

From the individual states and territories, an additional tax is levied on companies, the so-called Payroll Tax. The basis here is the total paid by the employer to his employees income. The Payroll Tax is payable only from about a free boundary, so that small businesses are exempt from it.