Taxes in Australia are administered and collected by the Australian Taxation Office (ATO), and in some cases state government revenue offices. Businesses can save money by paying the correct amount on time and taking advantage of any tax concessions that they are entitled to.
The key taxes affecting businesses are Company (income) Tax, Capital Gains Tax (CGT) and the Goods and Services Tax (GST). These taxes are all set by the Australian Government.
Businesses can elect to make tax payments monthly, quarterly or annually.
Further information on these key taxes and other business taxes is provided below.
An Australian resident company is subject to company tax, at a rate set by the Australian Government.
A non-resident company is taxed on its Australian source income at the same rate as a resident company. Taxable income and the tax rate may vary under limited circumstances, such as industry or business structure.
For more information on company tax, including company tax rates, see ATO: Company tax rates.
Capital Gains Tax
Capital Gains Tax (CGT) applies on any capital gain made through the disposal of assets. It is paid as part of income tax.
Foreign entities may be subject to CGT on assets acquired and used in carrying on a business in Australia. Businesses are required to keep records upon acquiring assets that may be subject to CGT in the future. Small businesses may also be eligible for CGT concessions under certain circumstances.
For information on CGT payable on the disposal of assets in Australia, see business.gov.au: Capital Gains Tax.
Goods and Services Tax
The Goods and Services Tax (GST) is a national, broad-based consumer tax on most goods and services sold or consumed in Australia.
Most businesses are required to register for GST with the Australian Taxation Office. Businesses which have paid for business supplies inclusive of GST are entitled to claim an equivalent input tax credit. Certain businesses may also be eligible for GST concessions.
For more information on GST, see ATO: Goods & Services Tax.
Payroll tax is a state tax on the wages you pay to employees. It is calculated on the amount of wages paid per month and must be paid if total Australian wages exceed the exemption threshold in the relevant state or territory. The payroll tax exemption threshold and the payroll tax rate varies between states and territories.
For more information on payroll taxes and registration requirements, see business.gov.au: Payroll Tax.
Other business taxes
There may be other Australian Government and state and territory government taxes relevant to certain business activities. This may include items such as land tax and fringe benefits tax (FBT).
Businesses and investors should review these taxes to determine whether they apply in your particular case.
For further information on other business taxes, see business.gov.au: Taxation.