When the nineteenth century ended, all the six Australian colonies had developed their distinct tax systems. The primary source of collection of revenue at this time was custom and excise duties. The pattern followed to impose taxes was manifested through an administrative point of view. The policies of bureaucracy which are known for their indifference towards ground reality would lack equity and effectiveness. Customs duties discouraged trade between the colonies. One of the breakthroughs reached by Australia when it was converted into a Federation was the removal of these trade barriers.
Decoding layers of Australian Tax System For Your Taxation Assignment Help
Like any other and most industrialized nation-states, Australia’s duty take (estimated as the expense to GDP ratio) witnessed an exorbitant increase in the 20th century, by the growing part of the government. When Australia was becoming a Federation, Australia’s assessment to GDP ratio was around 5 per cent. This ratio remained sensibly consistent until the presentation of the government income charge in 1915, which was utilized to support Australia’s wartime endeavours. The government’s expenditure and tax revenues escalated between the two world wars. At the time of the declaration of the Second World War, Australia’s GDP to tax ratio was over eleven per cent. You might get tricky homework on Australian tax history. You can add this information to your assignment help.
A Glimpse Of university assignment on taxation law resolved by our experts.
Taxation law assignments are pretty common and students often feel confused while doing them because of lack of knowledge and clarity on concepts.
One such assignment shown here is an individual assignment which is designed to inculcate a deep understanding of Australian laws in the students.
Our experts have explained different types of taxes very carefully with all the details unveiled. You can have a look at the solution provided by them below.
The thick and thin of Australian tax laws
The Australian tax office is responsible for collecting taxes on behalf of the government of Australia. It collates most of the business taxes including the income tax. State collect their taxes exclusively and independent of the ATO and collects taxes like payroll tax. To avoid any instance of double taxing any person or foreign enterprises or associations, Australia has entered into many treaties with other countries.
Business tax in Australia
Business tax in Australia is defined by the government of Australia. These can be paid by companies monthly, quarterly, or annually. They are:-
- Company Tax
- Capital Gains Tax or CGT
- Goods and Service Tax or GST
- GOODs and Payroll Tax
- Other business Tax
A company that is resident of Australia meaning that its registered office is in Australia, is liable to pay company tax at a rate prescribed by the Australian Government.
A company which is not a resident of Australia could be taxed like a resident company. The tax is levied on the income generated by it on Australian territory. The rate of income tax and limit of taxable income may vary based on the type of industry or the structure of their business.
Capital Gains Tax or CGT
Capital gains tax is a compulsory levy that is imposed on income generated by transferring an asset. It is paid in the form of income tax.
Foreign enterprises and associations may be taxed for CGT for acquiring assets that are employed in carrying business functions in Australia. Business keep records as per the prescribed rules if any asset is acquired that may become a subject matter of CGT in the approaching assessment year. Small businesses are also eligible for taking benefits of Concessions and perks offered by the government under certain contingencies.
The Goods and Service Tax
The goods and services tax is applied nationally. It is a broad-based tax levied on consumers when they purchase any goods and services available for selling and consuming in Australia. An input tax credit, equivalent to the GST paid, is given to businesses who have paid their GST on all their Business supplies. Certain business can also claim concessions on paying GST as per rules.
As per the latest rules of the ATO, a business is required to get registered for GST with them. some of the companies providing assignment help provide procedural insight into this.
Payroll tax is a state tax on the wages you pay to employees. It is calculated monthly on the number of wages that are paid to the employees by the employer. The employer is not liable for deducting payroll tax if it doesn’t exceed the tax exemption threshold.
Australian Tax treaties
The Australian government has signed tax treaties with more than forty nations. The aim and purpose of these treaties or agreement are to avoid double taxation and promote harmony between various international authorities of tax.
It operates on people who are legal residents of a country that has signed the treaty. Some international taxation agreements have been signed to cover certain industries or subject matter of trade that require the special structure of levy of tax.
Other business tax
Since Australia is a federation, it has a tax structure that endows power to both the federal and state government to collect taxes for their respective domains. Land tax and FBT or fringe tax benefits are its examples.
Personal Income tax
The employer is entitled to deduct tax amount from the personal income of its employees. Generally, a person receives his salary after the tax has been deducted as per the rules laid down by the ATO. The amount so deducted is then transferred to the ATO.
Temporary residents are liable to pay taxes on the income generated by them in the Australian Territory. The tax rate for Australian residents and temporary residents are different from each other.
Australian Government provides free of cost healthcare facilities to most of its citizens. It means that if any Australian citizen gets sick and he unable to pay the doctor’s fee, he need not worry about it. Medical costs are covered by the government. The revenue to support this policy comes from the Medicare Levy which is paid by the working class every week. If the personal income of a citizen is more than $28,501 for a tax year, he will pay two per cent of that income as a Medicare levy. Revenue collected in the form of tax from citizens is used to run hospitals, take care of its supplies and staff, pay doctors and nurses, etc.
So, might have roughly understood some of the cardinal principles of the Australian tax system that would be beneficial for your Taxation assignment help!
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