Taxation - Federal, State and Local Rates

Taxation is the compulsory payment of a proportion of income / profits to a government. 

SME owners are required to pay all taxes or face fines / penalties / criminal proceedings. 

Audits can be forced upon a business (financial accounts checked).

Governments at various levels use these funds to provide essential common services. 

Different levels of government have different responsibilities. 

• Federal: The Australian Taxation Office (ATO) is the federal agency responsible for the collection of federal taxes; including: 

  • Group Tax (PAYE personal income tax), 

  • Goods and Services Tax (GST—10% of all sales), 

  • Company tax (30% of all company profits), and 

  • fringe benefits tax.

• State: Stamp duty (% of sale / purchase of land, premises or car); land tax; and payroll tax.

• Local: Council rates

Here is a great overview of the types and size of taxes in Australia.