Australian Tax Legislations

1
Australian Tax Legislations
Australian Income Tax Laws
Institution
Date

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Australian Tax Legislations
Executive summary
The aim of this report is to analyze various aspects of taxation concepts such as the income tax
and the rules applied on the same and how they can be applied in real life. The report also
intends to equip the student with the understanding and knowledge on various deductions
concerning income ax both in Australia and Diaspora.
A case study on Emma’s capital gain tax and city sky company‘s goods and service tax
demonstrate best approaches to GST and CGT issues. Finally, the report contain s the taxation
principles which illustrates what a tax system should demonstrate.

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Australian Tax Legislations
Table of Contents
Executive summary.......................................................................................................... 2
Introduction.................................................................................................................... 4
Income Tax Rates In Australia............................................................................................. 4
Australian residents (2019-2020 tax rates less 2% Medicare tax)...............................................4
Nonresident (2019-2020 tax rates less Medicare tax)..............................................................5
Capital gain tax............................................................................................................ 5
Goods and service tax.................................................................................................... 6
Fringe benefit tax.......................................................................................................... 6
Withholding tax....................................................................................................... 6
Self assessment tax....................................................................................................... 6
Anti avoidance rules...................................................................................................... 7
LEGISLATIONS............................................................................................................. 7
REFERENCES............................................................................................................. 12

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Australian Tax Legislations
Introduction
In Australia, income tax is the most important form of tax the federal government is collecting in
Australia through ATO-Australian Taxation Office. The function of the federal government is to
collect goods and service tax proceeds before its distribution to states in Australia. For income
tax purposes, an entity in Australia is a resident if its incorporation was done in Australia or if it
conducts its operation or business in Australia. In addition, an entity qualifies to be an Australian
resident if the shareholders who control the voting powers are Australian residents or the control
and overall management is in Australia
Income Tax Rates In Australia.
Personal income tax is imposed to individuals at the federal level. It is the Australian’s one of the
most important source of revenue levied progressively. This means high income is proportional
to high rates (Evans, 2019, pg 217).
Australian residents (2019-2020 tax rates less 2% Medicare tax)
Taxable income Tax on this income
0 to $ 18200
$ 18,201 to $ 37,000 19c for @ 100 c over $18,200
$ 37,001 to $ 90,000 $3,572 + 32.5 c for @ 100 c over $37,000
$ 90,001 to $ 180,000 $20,797 + 37 c for @ 100c over $90,000
$ 180,001 and over $54,097 + 45 c for @ 100c over $180,000
Australian residents (2018-2019 tax rates less 2% Medicare tax)
Taxable income Tax on this income
0 to $18200
$ 18,201 to $37,000 19 c for @ 100 c over $18,200