Almost everyone is dealing with the arrangements of financial data to maintain their taxes to a minimum and such matters are termed as “tax planning”. Tax planning is only authorized when one does it within the spirit of the law though there are few things that establish the fact if they are even lawful. Handling taxes can be a little problematic and difficult well it will be easy for you to hire an accountant as they are experts at filing taxes. Involving in tax avoidance projects can be risky and to dodge any kind of heavy penalty or interest it will be beneficiary for you to have an expert to guide you. Well, so far we have come across the topics where we learned about taxation and the need for hiring a tax agent, today we will be learning about the types of Taxation in Australia…
- Superannuation Tax: This pension program in Australia was established by the employers and their contributions. Such funds are saved by employers from the employees’ salary and the later is made available to them with add on incentives. The taxes are usually charged at three points that are termed as “three pillars”.
- Corporate Tax: These taxes are charged at a thirty percent flat rate, Companies and corporate both are required to pay tax to the federal government for benefit earned. Before any distribution of the profits to the shareholders, it is important for one to pay the corporate tax to the government.
- Goods & Service Taxes: Australian government enforces ten percent tax on every supply of goods and services. Such taxes are imposed on people who hold registration for Goods and Services Taxes. Supplies such as medical services, food products, exports and services that are relevant to education are free from paying the goods and services tax.
- Excise Tax: These kinds of taxes are imposed by the federal government on petrol, alcohol, and cigarettes as they are termed as “inelastic goods”. Such kinds of goods are always in demand and consumed by people regardless of the rise in their price.
- Payroll Taxes: Such taxes are levied by the state government of Australia where the price actually varies as per the different circumstances.
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