However, Australia has tax treaties with a number of countries, which is intended to limit the amount that businesses are double taxed.Ĭapital gains tax: If you sell a capital asset, such as your business, a vehicle or a building, you will either see a capital gain or a capital loss. By receiving an income in another country, you will be taxed according to that country’s tax laws, and you might be taxed in Australia, too. International tax: If your business expands beyond the Australian borders, you will likely be subject to international taxes. Check the land tax laws in your state or territory - they vary, and certain organisations may be exempt from paying land tax. Similar to rates, the amount of land tax you will need to pay depends on the value of your property. Land tax is charged to landowners annually by state or territory governments, except in the Northern Territory. The amount of tax you owe due to stamp duty varies on the size and type of property purchased as well as the specific laws in your state or territory, which vary. Stamp duty can apply to several different transactions, including signing a lease or taking out a mortgage, transferring property or purchasing a motor vehicle. It’s a tax on the transaction, and it’s owed to your local state or territory government. Stamp duty occurs when you purchase the property. For example, if you own a taxi company, the maintenance costs of the vehicles you use may be tax deductible. A business can claim deductions for costs that are necessary to run and grow their operations. Company tax is calculated based on the assessable income of your business - the gross amount of money your business makes through day-to-day operations - minus any deductions you claim. It is a tax on the profits that your business generates, and it is separate from your individual income tax. So, as the income that you earn from your business increases, so does your marginal tax rate.Ĭorporate tax: Corporate tax is unique to business owners.
Individual income tax is collected at a progressive rate, meaning the more you earn, the higher percentage of your income you owe in tax. Individual tax: This is the tax that every income-earning individual in Australia faces.
These are collected by the Australian Taxation Office (ATO) and used to fund government initiatives and projects. Depending on your organisation, you may face taxation in several forms: individual taxes, corporate taxes, property taxes and international taxes.