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The taxation law is a group of rules and regulations that deals with levying taxes from the public and business entities. The taxation authority of the government levies it in the form of income tax, goods and services tax, capital gains tax, etc. Taxation is regarded as one of the most important sources of income for any country. The form and method of levying tax vary from country to country. In Australia, the Commonwealth Grants Commission has the right to make and amend the laws related to taxation. The constitution of Australia has provided it all these powers. Income tax is one of the most crucial forms of taxation for the Australian government. The federal government of Australia levies it and the Australian Taxation Office plays the role of mediator in collecting the income tax from its citizens.
The other significant form of taxation in Australia is the Goods and Services Tax (GST). It is also collected by the federal government of Australia. But after collection, the federal government distributes it to the states according to the formula made by the Commonwealth Grants Commission. Australia is known for putting less tax burden among its other counterpart countries which are developed and wealthy. The Australian government has also signed some treaties with other countries to avoid taxation twice for the same purpose. These treaties help foreign entities and multinational companies to prevent double taxes.
Apart from these two significant taxes, the Australian government also levies numerous more taxes like corporate tax, trustee liability tax, property tax, departure tax, excise tax, customs duty, payroll tax, etc. to help the economy. Letâ€™s grab the in-depth knowledge of some above-mentioned forms of taxes:-
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