National regulation and international agreements

Consumption taxes

Nature of the tax

GST : Goods and Services tax
ATO : Australian Taxation Office

Tax rate

Australian VAT is tax on goods and services: Goods and Services Tax.
A rate of 10% applicable when selling or buying most goods and services in Australia and when importing into Australia (which includes Customs valuation, Customs tax, transport and transport insurance if it is not already included in the Customs valuation).

Reduced tax rate

No reduced rate.

Other consumption taxes

None

Corporate taxes

Tax rate

Corporate tax	:	30%
Fringe Benefit Tax	:	48.5% on the value of fringe benefits granted to staff
Payroll Tax	:	Between 3.65% and 6.85% of the global company payroll (however, small companies are generally exempted).
Dividends	:	Free of tax for resident companies.

Tax rate for foreign companies

Resident companies are taxed on all their profits worldwide at a rate of 30%. Non-resident companies are taxed in their country of origin.

Capital gains taxation

Capital gains on assets held by an Australian company and long term capital gains are taxed, in principle, when they are realized at the Corporate tax rate, i.e. 30%.

Main allowable deductions and tax credit

There are tax incentive measures on investment in equipment and investment of capital.
According to the nature and the size of the investment project, the governments of the States can, for a limited period, grant tax aid in the form of tax relief on payroll tax, stamp duty or land tax. For further information, consult the Department of Innovation, Industry, Science and Research website.

Other corporate taxes

Stamp duty: all the Australian States and Territories subject certain transactions to Stamp Duty at rates which vary according to the transaction.
Land tax is collected by each State on the non-revalued value of land, at progressive rates.
Payroll tax is collected from employers. This tax is specific to each State, and its rates and conditions of payability vary according to the State. Payrolls under a certain threshold are exempted (in the State of New South Wales AUD500,000 ).

Individual taxes

Tax rate

Income tax	:	AUD1 – AUD6,000: Nil AUD6,001 – AUD30,000: 15c for each AUD1 over AUD6,000 AUD30,001 – AUD75,000: AUD3,600 + 30c for each AUD1 over AUD30,000 AUD75,001 – AUD150,000: AUD17,100 + 40c for each AUD1 over AUD75,000 AUD150,001 and over: AUD47,100 + 45c for eachAUD1 over AUD150,000
Fringe Benefit Tax, FBT	:	Click here for more information.
Medicare Levy	:	1.5% of taxable income

Allowable deductions and tax credit

Professional expenses, subscriptions to professional reviews, training, expenses related to travel (professional activities), driving expenses for professional activities, gifts and donations and expenses related to clothing for certain professions.

Special expatriate tax regime

For expatriates, it is advisable to look into questions related to tax residence and to set up tax optimization schemes especially to limit taxation on certain allowances, such as the Living Away From Home Allowance (LAFHA).
Tax exemption for income from abroad for temporary residents, which includes also capital gains, has existed in Australia since 1 July 2006.

Double taxation treaties

Countries with whom a double taxation treaty have been signed

Double taxation agreements (DTA) with Australia.

Whithholding taxes

Withholding tax rates are 0/30% for dividends, 10% for interest and 30% for royalties.

Bilateral agreement

Sources of fiscal information

Tax Authorities

Australian Taxation Office

Other domestic resources

Invest Australia