Different Types Of Taxes In Australia
The corporate taxes in Australia are imposed at 30 percent flat rate. Corporates as well as companies are required to pay tax to the federal government in Australia for profits earned. Prior to the distribution of profits (as dividends) amongst the shareholders, the corporate tax is paid to the government. Franking credit, which is tax credit in Australia is made available to the shareholders so that they can see the corporate tax, which has already been paid. This procedure is known as dividend imputation.
The government in Australia imposes 10 percent tax on supply of services as well as goods. This tax is usually levied on individuals who have registered for Goods And Services Tax or GST. Supplies like exports, food products, medical services, services related to education are free from paying the GST tax. They may be taxed on inputs like financial services, accommodation (residence). The revenues, which are earned from Goods and Services tax are distributed among the states. Stamp duties are imposed by the government on different types of transactions. However, federal government in Australia, do not impose sales tax on certain transactions.
Among different types of taxes in Australia is also included, the inheritance tax. Australia does not have inheritance tax as such. In the event when there are estate acquired assets, the assets are subjected to the Capital Gains Tax or the CGT. The Australian government envisages that, if an individual inherited assets from a deceased person who breathed his last after September 20th. 1985, special records are required to be maintained. If the asset acquired was prior to 20th September, 1985, the asset value at the time of death is to evaluated.
Excise taxes are levied by the federal government on petrol, cigarettes, alcohol. These are referred to as in elastic goods.
These are known as inelastic goods because the demand for these goods is always there even if there is an increase in the prices if these commodities.
States governments depend largely on property taxes for carrying out different activities. Property taxes from commercial complexes, industrial houses and residential complexes fund the state governments. There are times when the local governments impose tax on value of land. Taxes imposed on value of the land is mainly applicable to properties of very high value. Stamp duties are imposed by the state governments on land transfers and other such transactions. Taxes are also levied on fire services. This is applicable for insurance contracts pertaining to domestic set ups as well as businesses. These taxes earned from this sector helps in funding the various activities of the fire department.
Payroll taxes are imposed by the state government, the rates of which differ under different circumstances.
Different types of taxes in Australia also include income taxes. Income taxes form the main sources of revenue for funding the different activities of the government, especially the federal government. Income tax is levied on individuals who fall under the taxable group of people. The idea of income tax took birth in Tasmania in 1880. During that period tax was imposed to collect money from the people of Tasmania, as the government in Australia was not in a good state. Thereafter, income tax was levied on the income of the people residing in Southern regions of Australia. By 1907, income tax was levied on the income of almost all individuals residing in all the states of Australia. Low Income Tax Offset, Family tax benefit as well as capital gains tax are the different categories of income tax levied on income of individuals along with personal income taxes.Source: www.economywatch.com