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Australia-TAXES ACCOUNTING

Corporate tax


Tax rate for resident companies

The rate of the corporate tax for resident corporations is 30%, for the tax year 2001-2002.
Any company is also liable for the Fringe Benefit Tax - FBT (tax of 48.5%, owed on the value of fringe benefits granted to the employees of a company).
States also levy the Payroll Tax which varies between 3.65% and 6.85% of the global mass salary of the company (however, small firms are generally exempted from it).
   

Taxe rate on long-term capital gains

The tax rate on long-term capital gains is 30%.
   

System governing groups of companies and dividends paid by subsidiaries to their parent companies

With a few exceptions, dividends paid among residents companies are free of taxes. However, dividends paid by resident companies to nonresidents are subject to a withholding tax at the source at a rate of 30% (15% in case a tax treaty is applicable).
   

Tax rate on branches

A tax rate of 30% is imposed on branches, except under some non imposition agreements conditions.


Income tax


Fiscal year

The Australian tax year begins on 1st July and ends on 30th June.
   

Income tax rate

Tax rate schedule on the income 2005 for a resident:
0 A$ - 6,000 A$: 0%
6,001 A$ - 21,600 A$: 17%
21,600 A$ - 58,000 A$: 30%
58,001 A$ - 70,000 A$: 42%
Above70,000 A$: 47%
   


VAT rates


Standard rates

There is no VAT strictly speaking in Australia rather a GST (Goods and Services Tax - GST): The GST has a rate of 10% which applies during the sale or the purchase of the majority of goods and services in Australia or when importing in Australia. Some goods are exempt from GST: education, health, chidren care and so on.
   

Reduced rates

Reduced rates do not exist.



Accounting



General accounting principles


In Australia, accounting is defined by the Corporations Laws. It requires that companies must refer to standards promulgated by the Australian Accounting Standards Board ( A.A.S.B). Any error registered concerning standards A.A.S.B must be mentioned on the audit report. {A.A.S.B}
Australian accounting standards are almost similar to the international accounting standards {I.A.S.B}


Certification and auditing


The auditors must be registered as such. They obtain this recording either in the Institute of Chartered accountants of Australia ( I.C.A.A) or in the Australian Chartered accountants Organization.



Useful links

For futher informations, please contact Invest Australia and the Australian Taxation Office.  

 

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