Understanding Australian taxes
Understanding Australian tax obligations is essential for any business.
Most major business taxes, such as income tax, are collected by the Australian Government through the Australian Tax Office (ATO). In some instances state-based taxes also apply, most commonly for payroll tax. Australia also holds a number of tax treaties with other nations to prevent double taxation of foreign entities operating in Australia.
Further information on taxes in Australia is provided below.
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Australian business taxes
Information on company tax, Capital Gains Tax (CGT), Goods and Services Tax (GST), and other business taxes in Australia.
Australian business taxes
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Personal income tax in Australia
For most employees, personal income tax is paid by their employer. The employer generally subtracts the required level of tax out of an employee’s pay before it is received, and remits this amount to the Australian Taxation Office (ATO).
Temporary residents are also required to pay tax on income earned in Australia, though at different rates to those that apply for Australian residents.
For further information, see the ATO’s Guide for employers.
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Australian tax treaties
Australia has tax agreements with more than 40 countries. These tax agreements, or treaties, aim to prevent double taxation and promote cooperation between international tax authorities.
Individuals that are legal residents of a treaty country will be subject to the conditions of the treaty. In addition to bilateral tax treaties, there are some other international tax arrangements that relate to specific industries or topics.
To find out more on tax treaties, see ATO: Tax treaties.
Seek advice
Please note: This guide is intended to assist you in finding the relevant information and to give you a starting point for discussion with advisers. This guide does not eliminate the need for professional advice. It is strongly recommended that you use professional advisers to advise you on legal, compliance and tax matters.