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Migrating to Australia? Here is What You Ought to Know About its Taxation Policy
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Posted On :
Sep-05-2018
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Article Word Count :
483
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Do you know the reason why Australia is classed as one of the multi-cultural countries in the world?
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Do you know the reason why Australia is classed as one of the multi-cultural countries in the world? It is because 28% of Australians were born overseas! When compared to other countries, Australia has a higher share of migrants than most other countries, and one person arrives in Australia every minute and 24 seconds.
New migrants to Australia contributes to the country’s economy, and they lift the three “P’s” of economic growth namely,
- Population
- Participation and
- Productivity
states a tax lawyer in Perth.
According to the recent report published by the Treasury and Department of Home Affairs, “migrants pay more in tax and consume financially less in the services they rely on while here.” From this report, it is evident that the Australian Government benefits billions from the migrant population. The Migration Council of Australia says 250,000 migrants would be needed a year to boost the economy to an acceptable level of $1.6 trillion by 2050.
Here, we’ve discussed a few taxation policies to help new migrants understand more about Australian taxation.
Goods and Services Tax
GST is collected globally by the Federal Government, and it is then paid to the states under a distribution formula which is all determined by the Commonwealth Grants Commission.
Income Tax
In Australia, income tax can be paid through the Australian Taxation office and is collected by the Federal Government. Individual taxpayers are taxed according to their salary and wages, whereas company owners will be taxed at a flat rate of 30%. A Perth tax lawyer can guide you throughout your taxation process.
Tax-Free Threshold
The ‘tax-free threshold’ is available only to the residents of Australia, and this means that the first $18,200 you earn will be tax-free. One should have to complete a ‘Tax file number declaration’ before receiving payments from a Government agency to qualify for the ‘tax-free threshold’.
But, for foreign residents, this is not the same, and you will pay tax from the very first dollar of your taxable income. They will be taxed on their income sourced in Australia.
Foreign Resident Vs. Australian Resident
A person who is living in Australia for more than half of the income tax year will be considered as an Australia resident by the Government of Australia for tax purposes only. This applies to international students in Australia as well.
Tax Procedures
As a company or an individual, you are entirely responsible for providing the correct information to the Taxation Office and the Government of Australia. The individuals or the company owners must lodge an annual tax return at the end of each income year, and you may claim any deductions or offsets you are entitled to. Contact your migration lawyer in Perth to know more.
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Article Source :
http://www.articleseen.com/Article_Migrating to Australia? Here is What You Ought to Know About its Taxation Policy_322054.aspx
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Author Resource :
The author of this article is the leading tax lawyer in Perth with over a decade of experience in practising law. In this article, she explains the fundamental taxation laws that every new migrant should be aware of before migrating to Australia. Visit https://www.munrodoig.com.au/ for more information.
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Keywords :
tax lawyer in Perth, Perth tax lawyer, migration lawyer in Perth,
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Arts and Entertainment
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