Australia Tax Refund: Overview

In Australia, tax returns generally close on October 31 of the year that ends on June 30 of the same year. The fiscal year is from July 1 to June 30. Unlike in the United States, the fiscal year is October 1 through September 30. You can extend the period, especially when filing tax returns. Tax reports can be filed electronically or electronically using ATO’s e-Tax software.

The Australian tax system is perceived as quite complex, and this view is supported by the fact that almost 80% of Australia uses tax agents to complete tax returns.

Australian companies can be required to pay company tax return to local, state and federal governments at all levels. In Australia, these taxes are used to provide public services such as public hospital systems and roads.

The Australian Tax Code defines strict reporting requirements concerning tax reporting in Australia. The benefits provided depend on the commercial structure and operating conditions. This overview only considers sellers, associations, trusts, and companies. It also covers three social welfare issues.

Income tax

Income taxes are imposed by the Australian federal government, so they are consistent across all states. Not always. Before World War II, some state governments imposed income taxes. It is the most important as with the largest contribution to public revenue. 

The company must file a company tax return. Company income tax is different from personal income tax that requires you to file a personal return. Revenue shows the net profit of the company. Corporate tax rates are set at 30% of net taxable income similar to the United States, Mexico, New Zealand, Turkey and the United Kingdom (Source: OECD Tax Database). Comparing this with 16% in Hungary and 19% in Slovakia, Spain’s corporate tax rate is 35%.

The trust must file a tax report to deduct income and expenses. The beneficiary of the trust must report the income or benefits received from the trust. This includes measurable income such as salary, wages, dividends, and rental income. 

The association must file a company tax return. Income must show the calculated net income by subtracting costs and other deductions from your gross income. Each partner must report the percentage of the company’s net income, wages or salaries, dividends, and rental income as individual earnings.

The sole provider does business on behalf of the owner. Taxable income or loss is reported as personal income, as well as other income in the form of wages and salaries, dividends and rental income, excluding deductions from this amount.

Corporate and private seller tax returns effectively report non-business income. Personal tax rates are calculated on a gradual scale, unlike corporate tax rates, and are a constant percentage of the total income range.

Declaration of commercial activity (BAS) 

Companies with sales over $ 75,000 ($ 150,000 for non-profits) must file a GST report, commonly called BAS. Businesses below the threshold may still be eligible for GST registration and must submit a GST report. Australia’s GST is 10%, with a 7% VAT compared to other countries except for Canada. For example, 12.5% ​​in New Zealand, 17.5% in the United Kingdom and 21% in Ireland. The Howard government introduced the GST system in Australia in July 2000 and replaced other taxes, such as the state sales tax. GST income is distributed to states to provide state-based public services, such as education. 

Additional income tax (FBT) 

The Extra Benefit Tax (FBT) is a tax paid to certain payroll employees or payroll employees who receive employers instead of payroll. Common examples are low-interest loans, corporate vehicles, and some entertainment benefits. Check this website to find out more details.