In Australia, there are three sources of income tax paid by individuals: the personal income tax (paid on salaries and earnings), the business income tax (paid on the company’s benefit) and the property tax (paid on assets value).

Personal Income tax

This is a question every expat wonders when they live abroad. When you are an international, where do you pay taxes?

Two options are possible. As an expat resident in the country, you pay taxes in Australia on money earned worldwide. By resident, it means living in the country for more than 183 days a year. If you have a principal home in Australia or a temporary resident visa, you’re also considered as resident for tax purposes.

Individual tax rates for residents:

As an expat non-resident in Australia, you pay taxes on money earned only in the country.

Individual tax rates for non-residents:

Business income tax

The tax rate of companies is a flat rate of 30%. A lower tax rate of 28.5% applies for small businesses (turnover of less than 2 million Australian dollars).

Capital Gains tax

This tax applies for both individuals and companies who owns an asset.

Australians property taxes are known as land rates. Land rates depend on the local councils, as well as the frequency of payment. There’s also a stamp duty applying when a property is bought. The stamp duty rate depends on the property value and the state (within a range of 1% to 6.75%).

Sales taxes

The Goods and Services Tax in Australia is around 10% on goods and services sales value.


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