Property Economics and Finance pdf
Added on 2021-04-24
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Running head: PROPERTY ECONOMICS AND FINANCEProperty Economics and FinanceUniversity NameStudent NameAuthors’ Note
2PROPERTY ECONOMICS AND FINANCEExecutive SummaryThe current study elucidates in detail about financial and taxation environment inAustralia that can be utilized by financier client to uphold decisions of investment.Additionally, this study focuses on ability of identifying, understanding, summarising andanalysing diverse taxation and finance market along with the identified risk issues.Furthermore, the study at hand has the intent to present analytical understanding as regardsenvironment that can assist financiers to endorse investment decisions. Thus, this studyconcentrates on monitoring and detection of risks (both financial along with taxation concern)related to the Western Sydney Airport and present suggestions for dealing with the identifiedissues.
3PROPERTY ECONOMICS AND FINANCEIntroductionThe current study intends to analytically examine the environment finance environmentand the taxation environment for analyzing the atmosphere in which the Western SydneyAirport will thrive. The study at hand identifies diverse risks that might affect investmentdecisions of financiers in Western Sydney Airport with special consideration to the financialas well as taxation risks attached to the environment of the business. Moving further, thisstudy presents a risk framework that can help in systematic appropriate detection of risk thatcan be addressed adequately. Thereafter, the study presents the identified risk and proposessuggestions for averting the identified risks. The given case study under deliberation helps in comprehending background of theestablishment of the Western Sydney Airport. The case study reads about the opportunities ofjob creation and growth of the economy in particularly Western Sydney. As such, this alsoindicates towards increase in volume and states presence of around 82 million passengerevery year (Galariotis et al., 2016). Also, the case study explains about present infrastructureand taxation for developing the process of planning and preparing work for Western AirportProject. Description of finance environment in Sydney, NSW, Australia The nation Australia provides a powerful combination of solid economic performance, adiversified economy along with low risk environment for undertaking business operations. Asper reports, it can be said that the nation Australia is entering 26 years of persistent economicgrowth; nation is the 13th largest economy in the entire world and 5th largest economy amongthe Asian economies (Sigmund et al., 2015). Entering 26 years of uninterrupted economicgrowth along with AAA sovereign risk profile, Australia is well positioned to continue toprosper. Regardless of the fact that this nation is home to only 0.3% of the entire world
4PROPERTY ECONOMICS AND FINANCEpopulation, GDP accounts of Australia accounts for approximately 1.7% of the world’seconomy. Description of taxation environment in Sydney, NSW, AustraliaThere are different forms of taxation scheme prevalent in Australia. In particular, bothindividuals as well as corporations operating in Australia might be required to disburse taxesor else charge to different government levels namely local, state along with federalgovernment. Jeucken & Bouma (2017) suggests that taxes are collected to make payments fordiverse public services together with transfer payments. J. Liapis et al., (2014) identifies that income taxes are the most important taxation form inthe nation Australia, and amassed by the federal government by means of the AustralianTaxation Office. Again, Australian GST revenue can be acquired by the Federal Governmentand then disbursed to specific states under a distribution formula ascertained by theCommonwealth Grants Commission. According to reports of taxation, Australia maintains aconsiderably lower burden of taxation in comparison to other wealthy, developed countries.This is necessarily 27.8% of the nation’s GDP in the year 2018. As indicated by (), taxes inAustralia are primarily administered and acquired by the Australian Taxation Office and incertain cases revenue offices of the state government. As such, businesses operating inAustralia can save money by disbursing the appropriate amount on time and acquiring benefitof any kind of tax concessions. As rightly put forward by Aharoni (2015), the important taxesthat affect businesses are Company (Income) Tax, Goods and Service Tax (GST) as well asCapital Gains Tax (CGT). Additionally, businesses can elect to make disbursements everymonth, quarter or year. Company Tax: An Australian resident corporation is necessarily subject to company tax,at a specific rate determined by the Australian Government. Again, a non-resident
5PROPERTY ECONOMICS AND FINANCEcorporation is chiefly taxed on Australian source earning at the same rate as a residentcorporation (Levy, 2015). Taxable earning along with tax rate might possibly differ underlimited circumstances, namely industry or business framework. Capital Gains Tax: Capital Gains Tax (CGT) implements on any capital gain acquiredby means of disposal of assets. In essence, it is paid as a particular part or section of incometax. Essentially, foreign business units might be subject to CGT on particular assets acquiredand utilized in undertaking business actions in particularly Australia (Kumar & Goyal, 2015).Businesses also have the need to maintain records upon acquiring assets that again might besubject to CGT in the upcoming period. Goods and Services Tax (GST): As correctly mentioned by Gaziel Yablowitz & Raban(2016), the Goods and Services Tax (GST) is necessarily a national, broad based consumertax on majority of goods and services marketed else wise consumed in Australia. Majority ofbusinesses have the need to register for GST with specifically the Australian Taxation Office.Particularly, businesses that have made payments for various business supplies counting GSTare entitled to claim an equal input tax credit. However, there are also certain businesses thatare eligible for concessions of GST. Payroll Tax: As rightly put forward by Lambarraa et al., (2015), payroll tax can beregarded as a state tax levied on the wages that is paid to workers of a corporation. As such, itis enumerated on the specific amount of wages that is paid every month and has the need tobe disbursed in case if the Australian wages exceed the threshold of exemption in thepertinent state or else territory. Other taxes: In particular, there might be taxes of the Australian Government andTerritory Government that are pertinent to specific business actions. In essence, this mightpossibly include certain items namely land tax along with fringe benefits tax. Business along
6PROPERTY ECONOMICS AND FINANCEwith financiers assesses these types of taxes for the purpose of ascertainment whether theyare applicable in a specific case. O’Callaghan & Vivoda (2017) suggests that there is avariety of federal, state along with local government taxes and rates can apply, based on sizealong with location of the business. Analysis of implication of tax on investment decision of the case project developmentThere are several tax incentives that can help financiers to invest in the project. Different taxincentives that can affect the current project re as mentioned below:- Research and Development Incentive of taxProgram of incentive for research and development is available in Australia. This can help infostering the process of establishment of the project under consideration (Lambarraa et al.,2015)-Tax incentive for early stage innovation company (ESIC)Financiers of Australian ESIC also have accessibility to specific tax incentives. A non-refundable carryforward tax offset of the amount that is equal to 20% is disbursed for newissued equity interests particularly in ESIC. Again, capital gains tax (CGT) concessions areavailable for various interest in an ESIC of Australia (Lambarraa et al., 2015).-Concessions for Investment Manager Regime (IMR)IMR delivers different non-residents with particularly exemptions of Australian income taxfor returns. -Various other incentivesDiverse other incentives are also particularly available for business.
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