Australia Income Tax

 

 

 

 

 

 

Australia Income Tax

 

 

Income Tax in Australia

The income tax rate generally and logically rises as an individual tax payer earns more.

For the taxation fiscal year July 1, 2008 to June 30, 2009, the Australian income tax system is introducing a more lenient collection rate, amid the global financial crisis.

Taxable income ranging from A$1 to A$6,000 is not imposed any tax rate. A 15% income tax rate is deducted when taxable annual income reaches A$6,001 to A$34,000. A 30% income tax is imposed to yearly income A$34,001 to A$80,000.

A 40% and 45% income tax is imposed on incomes A$80,001 to A$180,000 and above A$180,000, respectively. Australia income tax system is one of the most systematic and most admired all over the world.

 

 

It is a common knowledge that governments primarily derive their revenue and income from tax collected from constituents. In return, tax-paying people are given the privilege and comfort to live comfortably, safely and orderly.

Basic infrastructure, government social funds, security forces and overall governance are funded by tax collections.

 

Australia Income Tax

In Australia, income tax is levied through three basic income sources for individual taxpayers, namely, personal earnings in the form of wages and salaries, business revenues, and capital gains. Progressive tax rates are implemented to individual income, while income generated by firms is imposed a 30% tax flat rate.

 

All Australia income taxes are collected for the government by the Australian Taxation Office. Aside from Australia income tax deducted, individual taxable income is also subject to a 1.5% Medicare levy. People with higher taxable income and less hospital and healthcare insurance coverage are levied 2.5% of taxable income for Medicare.

 

Such Medicare levies and tax income implementations are also applied to migrants and foreign workers, who come to earn a living in the country.

The Australian government has an aggressive battle against tax evasion. Tax administrators in the country are working cooperatively with counterparts in other countries like the United States, the United Kingdom, France, Canada, Italy, Sweden and New Zealand to curtail and crack down Liechtenstein accounts that are popularly used by unscrupulous businesses and individuals to avoid tax payments.

 

The Australian Taxation Office is regularly conducting unannounced visits and inspections to identify Australians with suspicious tax evading accounts and other tax prevention activities.

Thus, there is definitely no need to reiterate that the Australian tax officers are also closely monitoring local taxpayers who are suspiciously abusing use of offshore bank accounts, financial products and tax arrangements. The Australian Tax Office is constantly warning tax payers against tax haven schemes and illegal tax avoidance strategies. Tax payers who are not paying appropriate income taxes are subject to penalties and other legal provisions. Tax evasion in Australia is indeed a clear criminal offense.
 

 

 

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