{"id":38811,"date":"2020-10-19T15:39:08","date_gmt":"2020-10-19T07:39:08","guid":{"rendered":"https:\/\/zegal.com\/?p=38811"},"modified":"2023-01-13T14:32:21","modified_gmt":"2023-01-13T06:32:21","slug":"a-guide-to-australias-taxation-system","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-sg\/blog\/post\/a-guide-to-australias-taxation-system\/","title":{"rendered":"A Guide to Australia’s Taxation System"},"content":{"rendered":"

\"australia<\/p>\n

Australia\u2019s taxation system has been recently revised. Overseen by the Australian Tax Office (ATO),<\/a> before doing business in Australia, it is important to know the general business and personal tax rates in order to ensure a smooth financial process for you and your business. <\/span><\/p>\n

Read on to find out the types of taxes and Australia\u2019s taxation system.<\/span><\/p>\n

For the filing of personal and corporate income taxes, Australia\u2019s system follows the financial year calendar, beginning on 1st July and ending on 30th June the following year. Additionally, corporations can choose to follow the classic calendar year from 1st January to 31st December instead. The taxation rates under the Australian tax systems are applicable for both Australians and foreign residents working in Australia.\u00a0<\/span><\/p>\n

Corporate Tax Rates\u00a0<\/span><\/h4>\n\n\n\n\n\n
\n

CORPORATE INCOME RANGE<\/b><\/p>\n<\/td>\n

\n

TAX RATE<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

All Australian Companies*<\/span><\/p>\n<\/td>\n

\n

Federal tax rate of 30%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

*Small Business Companies (with an annual turnover below AUD 50 million)\u00a0<\/span><\/p>\n<\/td>\n

\n

27.5%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Personal Income Tax Rates<\/span><\/h4>\n\n\n\n\n\n\n\n\n
\n

PERSONAL INCOME RANGE<\/b><\/p>\n<\/td>\n

\n

TAX RATE<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Up to AUD 18,200<\/span><\/p>\n<\/td>\n

\n

0%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

AUD 18,200 to AUD 37,000<\/span><\/p>\n<\/td>\n

\n

19%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

AUD 37,001 to AUD 90,000<\/span><\/p>\n<\/td>\n

\n

32.5%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

AUD 90,001 to AUD 180,000<\/span><\/p>\n<\/td>\n

\n

37%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

AUD 180,001 and above<\/span><\/p>\n<\/td>\n

\n

45%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/span>Medicare levy and surcharge<\/span><\/h3>\n

Most people pay a Medicare levy<\/a>, which is 2% of your taxable income. The levy is charged as part of your yearly income tax assessment. If you’re on a lower income, this may be reduced, or you may not have to pay it at all. If you’re on a high income, you may have also to pay a\u00a0 surcharge of between 1.0 and 1.5% of your taxable income. This depends on your level of private health insurance and how much you earn.<\/p>\n

<\/span>Taxable income<\/span><\/h2>\n

Your taxable income is the income you need to pay tax on, minus your tax deductions and offsets.<\/p>\n

<\/span>Income that is taxable<\/span><\/h3>\n

Income that you must pay tax on includes money from:<\/p>\n