Australia Tax and Tax Office







Australia Tax and Tax Office



Australia Tax and Tax Office in Australia

In Australia, the state of Tasmania was the first to introduce and implement income tax in 1880. The tax collection was a form of withholding tax implemented to all state-based companies’ distributed income. The precedence was effective in generating revenue and fund for Tasmania, which was then struggling to survive a looming fiscal crisis. In 1884, South Australia followed suit and became the second Australian state to implement income tax collection.


By the year 1907, all Australian states have been implementing and collecting income tax. Australia tax and tax office is managed and run by the Australian Taxation Office. The government agency functions as a principal and sole revenue collection institution in behalf of the Australian government.



The tax office is not an independent legal entity, contrary to common notions. Australian Tax Office is actually included in the portfolio of the Commonwealth of Australia’s Treasury office.

Australia Tax Office

What are the main responsibilities of the tax office? The Australian Taxation Office is responsibly managing the country’s revenue from tax collection systems.

Taxes are collected in the form of income tax, superannuation, goods & services tax and excise, among others. Aside from collection system management, the Australian Taxation Office is also mandated to administer different refunds and benefits, including GST and income tax refunds, baby bonus, higher education loans for students and superannuation guarantee. The Australia tax and tax office has among the most organized and systematic structures. The office is headed by the commissioner of taxation, who is directly answerable for the administration of the national taxation system.


He is appointed on a seven-year contract by the Commonwealth government’s Governor-General. The commissioner is backed and assisted by several second commissioners, who are also appointed with the same term.

Aside from administration, the commissioner of taxation is also responsible for releasing annual financial reports annually. The report basically outlines the Australian Taxation Office’s revenue generation, performance, targets and previous achievements attained each year.

Some of the most revenue-generating tax collection forms are personal income, corporate, goods and services, property, excise, payroll, inheritance and superannuation taxes. Personal income taxes take progressive tax rates that are imposed based on individuals’ annual taxable income. Corporate taxes are fixed at 30% of locally operating companies and businesses. Good and services tax is imposed on all products and services sold to the public. Its tax rate is fixed at 10%.

Property taxes provide tax revenues for state and local governments. The tax impositions are based on the area and valuation of industrial, commercial and residential properties. Excise taxes, also called sin taxes in other countries, are generously collected from high-demand unnecessary products like petroleum, alcohol and cigarettes.

Payroll taxes are applied by state governments to local salaries, while inheritance taxes are imposed on inherited assets. Private pensions, which comprise a growing sector in the country, are taxed through minimal superannuation taxes.



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