Nexia Australia -Establishing a business in Australia presentation
DOING BUSINESS IN AUSTRALIAPresented by Sean Urquhart – Tax Partner at Nexia AustraliaT: 61 2 9251 4600 E: firstname.lastname@example.org
DISCLAIMERThe material contained in this publication is in the nature of generalcomment only and neither purports, nor is intended, to be advice onany particular matter.Readers should not act or rely upon any matter or informationcontained in or implied by this publication without taking appropriateprofessional advice, which relates specifically to their particularcircumstances. The publishers and authors expressly disclaim all andany person, whether a client of the Nexia Court & Co group or not, whoacts or fails to act as a consequence of reliance upon the whole or anypart of this publication. The information is current as of September2012.
Summary Business Taxation Structures and requirements Individual Taxation Taxation and incentives
Summary Step 1 – Selecting a business structure Step 2 – Establish the structure Step 3 – Consider what other registrations or applications may be required Step 4 – Consider employer obligations where engaging staff Step 5 – Gain an understanding of your ongoing reporting and payment obligations
Select the StructureWhat structure is suitable in Australia: Company Branch Trust Partnership Joint Venture
Common Structure UK Company 100% Ownership Australian Company
Individual Taxation Tax Residency Categories of tax residency Tax Resident Temporary Resident Non-resident Year end 30 June Tax Rates
Australian Tax Rates 2012 - 2013(Australian Resident Individuals)Taxable income Tax on this income$0 - $18,200 Nil$18,201 - $37,000 Nil + 19 % for each $1 over $18,200$37,001 - $80,000 $3,572 plus 32.5% for each $1 over $37,000$80,001 - $180,000 $17,547 plus 37% for each $1 over $80,000$180,001 and over $54,550 plus 45% for each $1 over $180,000* Add 1.5% Medicare Levy
Australian Tax Rates 2012 - 2013(Australian Non Resident Individuals) – no CGT discountTaxable income Tax on this income$0 - $80,000 32.5c for each $1$80,000 - $180,000 $26,000 + 37c for each $1 over $80,000$180,001 + $63,000 + 45c for each $1 over $180,000
Staff / Tax on Individuals Tax Incentives for expatriate employees: X Living away from home allowance (n/a post 1 October 2012) Expat benefits Private schooling Temporary Accommodation Relocation costs Holiday Travel
Tax ResidentsWho is a tax resident? reside in Australia 183 day test not a temporary residentGenerally will be Taxed on: World Wide Income
Taxation of Temporary ResidentsWho is a temporary resident?Generally will be Taxed on: Employment income in Australia Capital Gains from assets located in Australia× Excludes sale of share in Australian Public companies× Excludes worldwide assets× Excludes worldwide income unless Australian sourced
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