September 24, 2018

Income Tax

An Introduction to Income Tax in Australia

It’s never fun to pay taxes, but it’s something everyone will have to do sooner or later. It’s important to know the rules so you pay the right amount and save money. Nothing is more frustrating than losing money to tax or receiving a big surprise bill at the end of the year. We’ll help you figure out the tax jungle – keep reading to get a full introduction to income tax in Australia.

What is income tax?

Income tax in Australia is one of the main sources used to fund government activities for the public good. It can be divided into three main categories: Personal tax, business tax and capital gains. Personal income tax such as wages and salaries is a progressive tax which means that employees with a lower income also will pay a proportionally lower amount of tax. Company tax on the other hand is levied from all income made by companies and is currently at a rate ranging from 15 to 30%. Capital gains tax is a tax on all capital gains excluding home assets such as cars and furniture. So income tax is a broad term for three major areas of taxation. Let’s take a closer look at each one:

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