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DOING BUSINESS IN AUSTRALIAPresented by Sean Urquhart – Tax Partner at Nexia Australia
T: 61 2 9251 4600 E: [email protected]
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
