Nexia Australia -Establishing a business in Australia presentation

DOING BUSINESS IN AUSTRALIAPresented by Sean Urquhart – Tax Partner at Nexia Australia

T: 61 2 9251 4600 E: surquhart@nexiacourt.com.au

DISCLAIMER

The material contained in this publication is in the nature of general

comment only and neither purports, nor is intended, to be advice on

any particular matter.

Readers should not act or rely upon any matter or information

contained in or implied by this publication without taking appropriate

professional advice, which relates specifically to their particular

circumstances. The publishers and authors expressly disclaim all and

any person, whether a client of the Nexia Court & Co group or not, who

acts or fails to act as a consequence of reliance upon the whole or any

part of this publication. The information is current as of September

2012.

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 Structure

What structure is suitable in Australia:

Company

Branch

Trust

Partnership

Joint Venture

Common Structure

100% Ownership

UK Company

Australian

Company

Common Structure

UK Company

Australian

Branch

Common Structure

UK

Company

Australian

Branch

New UK

Company

Select the Structure

Establish the structure (company / Branch):

- Residency

- Incorporation / registration branch

- Tax file number

- Australian Business number

- Goods and Services Tax

Taxation / Reporting Issues

Audit Requirement

Tax year end alignment

Reporting requirements

Corporate Tax Rate 30%

Goods and Services Tax (VAT) – 10%

Importation rules

Repatriation of profits

Employer Responsibilities

Payment of employee taxes

Superannuation

Workers Compensation

Payroll Tax

Salary Package

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

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

(Australian Resident Individuals)

* Add 1.5% Medicare Levy

Australian Tax Rates 2012 - 2013

Taxable 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

(Australian Non Resident Individuals) – no CGT discount

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 Residents

Who is a tax resident?

reside in Australia

183 day test

not a temporary resident

Generally will be Taxed on:

World Wide Income

Taxation of Temporary Residents

Who 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