Tax
Residence-based income tax and 10% GST, with no inheritance tax
Federal income tax and GST administered by the ATO, with a residence-based system, no inheritance tax, and capital gains taxed as ordinary income with a 50% discount for assets held over 12 months.
Key rules
- Deadline — Individual income tax return: 31 October following the 30 June year end, unless lodged through a registered tax agent
- Deadline — GST registration required within 21 days of turnover reaching the $75,000 threshold
Governing law
- Income Tax Assessment Act 1997 (Cth) (s. 6-5)
- A New Tax System (Goods and Services Tax) Act 1999
- Taxation Administration Act 1953
In practice
The tax year ends on 30 June, not 31 December. Residents are taxed on worldwide income at progressive rates plus the Medicare levy; non-residents pay a higher starting rate and no tax-free threshold. GST is 10% with registration compulsory above $75,000 of turnover ($150,000 for non-profits). Australia has no estate, inheritance or gift tax, but the capital gains tax rules apply on death to assets passing outside the concessional rollover. Superannuation is compulsory: employers must pay the superannuation guarantee on top of wages, and underpayment is enforced by the ATO rather than as a wage claim.