The ATO ensures companies are kept in check with their tax obligations by maintaining a thorough compliance program for businesses. Goods & Services Tax Brought into being in 2000, the GST is levied on the sales of goods and services in Australia at a rate of 10%. It is designed to be a end-user tax, as businesses are able to claim back GST credits on the GST they have paid in the period. Most transactions are caught under the tax; with certain exemptions for financial supplies, health goods, fresh foods and council fees.
Income tax for individuals resident in Australia is a based on a bracketed system with the highest tax bracket being 45% (plus an additional 1.5% being for the medicare levy). Companies’ income tax is a flat 30% which is calculated on taxable income. Tax offsets can apply to reduce the tax exposure such the foreign tax paid overseas.
This is directed towards companies which give out non-monetary based benefits for its employees and is not covered under the PAYG system, ie; a private car. The tax rate is 46.5% and also involves a gross-up system.
This is levied at a State level and is generally based on the level of wages attributed to that state. Each State jurisdiction has different rates and means of calculating the payroll tax.