This article will highlight everything you must know about Tax returns in Australia. In Australia the fiscal year begins on the 1st of July and ends on 30th June. After a period of 4 months, on the 31st of October, of the same year, the Tax returns must be paid after the required tax deductions have been made.
More than half of the people in Australia need assistance from a tax agent, when it comes to matters related to tax returns. This is because the Australian system of taxation is considered to be one of the most complex systems in the world.
The return you are liable to pay, depends on the profitability of your business, along with the level at which you are liable for payment. Australians businesses may be liable on one of three levels, namely; state, federal, or local, or sometimes even on all of these levels. Once these taxes are received by Australia’s department of taxation, these are then used for the improvement and enhancement of public services and infrastructure.
Tax returns – Autralia must be reported to the relevant authorities, in order to ensure smooth running of your business, without facing any problems in the following fiscal year. Based upon the kind of structure your business possesses, and the level of complexity of your business’s operations, your tax returns may fluctuate between simple to complex.
Depending on what type of business you operate, like partnership, sole proprietorship, trust, private or public limited company, you would be asked to submit a particular type of tax return in Australia. Income tax is levied on all companies every year, which is slightly different than personal income tax, as it is paid out of the net income for that year, rather than from the owner’s personal earnings. The rate at which the income tax is charged from each company is 30%, which is levied upon the net taxable income for that fiscal year in which the income was earned.
Every type of business is required to submit a statement of their earnings, along with a notice which proves that they have paid the tax return. For businesses, whose annual turnover is greater than $75,000, they must file a General Sales Tax return in Australia, usually referred to as BAS. The rate at which the GST is charged is 10%, which is lowest, as compared to all other countries of the world.
Some companies also pay fringe benefit tax for certain employees, who are entitled to receive specific benefits, as per their job performance. These employees receive this tax from their employers in lieu of their salaries.