Income tax is the most significant form of taxation in Australia and is collected by the federal government. Individuals are taxed on personal income like wages at progressive rates from 0-45% plus a 2% Medicare levy. Companies pay a flat tax rate of either 30% or 27.5% depending on annual turnover. Tax returns are generally due by October 31 each year and can be filed online, with a tax agent, or using a paper form.

1. ( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |

2. Topics
Income tax in Australia is the most important revenue stream within the Australian
taxation system. Income tax is levied upon three sources of income for individual
taxpayers: personal earnings (such as salary and wages), business income and capital
gains.
In this Presentation I would like to show details regarding Australia taxation .They
include:
 Australia Taxation
 Resident for tax purposes
 The Federal Tax Structure for residents 2017
 Individual income tax rates (non-residents)
 Collection of Income Tax
 Low Income Tax Offset
 Tax Returns
( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |

3. Australia Taxation
 Income taxes are the most significant form of taxation in Australia, and collected
by the federal government through the Australian Taxation Office
 Australia maintains a relatively low tax burden in comparison with other wealthy,
developed nations, at 25.6% of GDP in 2013
 In Australia the financial year runs from 1 July to 30 June of the following year.
 Income received by individuals is taxed at progressive rates from 0 to 45%, plus
a Medicare levy of up to 2%
 Income derived by companies is taxed at a flat rate of either 30% or 27.5%
depending on annual turnover.
( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |

4. Resident for tax purposes
A resident for tax purposes is subject to income tax on income from all
sources, whereas non-residents for tax purposes are only subject to income tax in
Australia on their income from Australian sources.
There are four tests to determine whether an individual is a resident for income tax
purposes:
 If they are making contributions to a Commonwealth superannuation fund,
 In Australia for more than half the year,
 Have their domicile or permanent place of abode in Australia, or
 If they dwell permanently or for a considerable time in Australia.
( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |

5. The Federal Tax Structure for
residents 2018
The above rates do not include:
•The Medicare levy of 2% (1 July 2019, the Medicare levy will increase from 2% to 2.5%).
•The low income levy, which effectively increases the tax free threshold to $18,200
( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |
Taxable income Tax on this income Effective tax rate
$1 – $18,200 Nil 0%
$18,201 – $37,000
19c for each $1 over
$18,200
0 – 9.65%
$37,001 – $87,000
$3,572 plus 32.5c for each
$1 over $37,000
9.65 – 23.78%
$87,001 – $180,000
$19,822 plus 37c for each
$1 over $87,000
22.78 – 30.13%
$180,001 and over
$54,232 plus 45c for each
$1 over $180,000
30.13 – less than 45%

6. Individual Income
Tax Rates (Non-Residents)
The Medicare levy does not apply to non-residents, and a non-resident is not entitled to
the low income tax offset.
The rates have been unchanged since 2012-13. For prior tax years, see individual income
tax rates for non-residents of prior years.
( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |
Taxable income Tax on this income Effective tax rate
$1 – $90,000 32.5c for each $1 32.5%
$90,001 – $180,000
$29,250 plus 37c for each
$1 over $90,000
32.5 – 34.8%
$180,001 and over
$62,550 plus 45c for each
$1 over $180,000
34.8 – less than 45%

7. Collection of Income Tax
 Income tax is collected by means of a withholding tax system known as Pay-as-you-
go (PAYG). For employees with only a single job, the level of taxation at the end of
the year is close to the amount due, before deductions are applied.
 Discrepancies and deduction amounts are declared in the annual income tax
return and will be part of the refund which follows after annual assessment, or
alternatively reduce the taxation debt that may be payable after assessment.
( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |

8. Low Income Tax Offset
The Low Income Tax Offset (LITO) is a tax rebate for Australian-resident individuals on
lower incomes. For 2015-16, in addition to the tax-free threshold of $18,200, the LITO
is $445 until the individual's taxable income reaches $37,000. The LITO is then reduced
by 1.5c for every dollar of taxable income above $37,000, and cuts out when taxable
income reaches $66,667. The LITO reduces an individual's tax liability but is not
refundable when the liability reaches zero, and does not reduce the Medicare
levy. The LITO is calculated automatically by the ATO when a tax return is lodged.
( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |

9. Tax Returns
 Australian tax returns for the tax year beginning 1 July and ending 30 June of the
following year are generally due on 31 October after the end of the tax year.
 Australian individual taxpayers can file their return online with the ATO's my Tax
software, by ordering a printed copy of the tax return form, or with the assistance
of a tax agent. Until 2011, the Australian Taxation Office (ATO) published Tax Pack,
a free document designed to help individuals complete their return. In 2012, Tax
Pack was replaced with a smaller instruction document, due to increased usage of
the e-tax software.
 Extensions of the deadline for lodging a tax return are automatically available to
those individuals using a Registered Tax Agent operating on an extended lodgment
system, and extensions can be made available under some circumstances.
 In Australia, individuals and taxpaying entities with taxable income might need to
lodge different returns with the ATO in respect of various forms of taxation.
( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |

10. ( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |

11. ( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |

12. ( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |

13. ( 08595338595 |
Disclaimer
Nothing in this material must be taken as officially permitted or investment or
financial or job guidance or appropriate to come to an independent assessment of an
immigration policy or worldwide relocation or investment or family circumstance, or
for private matter. Although the facts given here in this text has been carried on the
basis of the widely available data, internal figures and other trustworthy sources
regarded to be spot on, we don’t really claim that the same is correct, or all-inclusive,
even as it must strictly not be relied on as such--the reason being the facts given here
on this site is strictly for the general guidance only. Neither ABHINAV nor any of its
associates/group firms shall he held accountable for any loss or harm which could
arise to any person from any unintentional mistake in the data carried here on this
site. This report given here on this site is being offered to you mainly for your personal
consumption, and its contents, figures or data should firmly not be copied, re-
distributed or forwarded --either in a direct manner or indirect manner.

14. Thank You!!
Contact Us : +91-8595338595
Email Us : web@abhinav.com
Visit our Website : www.abhinav.com
( 08595338595 | Abhinav Outsourcings Pvt. Ltd. |