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Paying Taxes in

Australia

Below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes and complying with postfiling procedures.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed on June 1, 2016 covering for the Paying Taxes indicator calendar year 2015 (January 1, 2015 – December 31, 2015).

Compare Australia to 189 other economies.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Corporate income tax 1 online 37 30% taxable profits 26.00
Superannuation guarantee 1 online 18 9.5% gross salaries 10.72
Payroll tax 1 online 5.45% total payroll 5.18
Worker's compensation 1 3.489% gross salaries 4.17
Fringe benefits tax 1 online and jointly 49% Grossed-up taxable value of fringe benefits 1.06
Municipal tax 1 online fixed fee (A$5,688) 0.15
Land tax 1 online 100 plus 1.6 cents for each $A exceeding $482,000 unimproved land value 0.14
Tax on insurance contracts 1 9% insurance premium 0.10
Vehicle tax 1 fixed fee ($A891 for each vehicle) 0.05
Fuel tax 1 liters of fuel 0.00 small amount
Value added tax (GST) 1 online 50 10% value added 0.00 not included
Totals: 11 105 47.6
  • Answer
    Profit tax (% of profit) 26.0
    Labor tax and contributions (% of profit) 21.1
    Other taxes (% of profit) 0.5
    Answer Score
    Postfiling index (0-100) 95.4
    VAT refunds 91.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process None
    Likelihood of VAT audit Likely
    Time to comply with VAT refund (hours) 4.5 91.0
    Time to obtain a VAT refund (weeks) 7.5 91.8
    Corporate income tax audits 98.6
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 2.3 98.6
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority Commissioner of Tax, Australian Tax Office
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online/ in printed publication/in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.