Understanding Australian Taxes: Part 3
Categories: Tax News
Written By: Tax Kangaroo
As mentioned in Part one and Part two of this article, to get a basic understanding of the tax code in Australia, you’ll need to understand the key elements of taxation within the country. These elements include the following;
1. The major forms of taxation
2. Government spending and levels of the Australian government
3. The politics surrounding Australian taxation.
The last and final element that goes into understanding the reasons why you lodge taxes is Australian politics and it’s effects on taxation.
Paying tax is a law in Australia. Have you ever asked yourself “Who made this law?”. The answer lies within the political world. Most recently, legislative decisions have led to the following changes in law;
1. The Anti-Laundering Amendment: created to prohibit large amounts of laundering and revenue used for terrorism.
2. Australian Charities and Not-for-Profit Commission Act: to create a “national regulatory framework for the not‑for‑profit sector and for related purposes”
3. Superannuation Act: Amends the Superannuation Act of 1999: This law is related to the transfer of unclaimed superannuation monies from states and territories to the Commissioner of Taxation”; it also provides transitional relief from income tax deductibility of total and permanent disability insurance premiums.
4. The Corporation Amendments: Explains what is considered a corporation and sets corporate governance, shareholders rights and Director’s duties.
5. The Excise Tariff Amendment: Increases the rate of excise duty on tobacco through a series of four staged increases of 12.5 percent, commencing on 1 December 2013 and allows changes by future amendments.
6. The Tax Laws Amendments: created to to enable individuals to consolidate multiple farm management deposits; and increase the taxable non-primary production income threshold” and “to exclude an FMD from becoming unclaimed moneys”
7. The Clean Energy Act: designed to reduce carbon dioxide emissions and limit global warming by increasing taxes on coal mining companies
To learn more on recent changes in the law, visit the Australian Government’s website at; http://australia.gov.au/publications/commonwealth-legislation
All of these legislative Amendments and Laws created and passed by Parliament have put further regulations on Australians and led to a longer tax code within the country. Although each of these have extended the tax code only certain bills have either increased or decreased certain taxes.
According to the World Bank, taxation makes up an estimated 25.6% of the GDP compared to 22.52% a few years ago. These increases may have lead you to ask more questions. In fact, many Australian resident have taken a closer look at how and why they lodge their taxes.
If you want to know more about why you’re being taxed and how, you can check out Part 1 and Part 2 of this article. If instead, you’re ready to lodge your taxes, you can get started now with AustralianTax.
