Boston, MA (PressExposure) February 29, 2012 -- Russell Hart , Media Manager, Australia Income Tax, one of the premier web portals offering information about the Australian Income Tax system and the way it works, said in the press conference "We take great care to provide latest information regarding Australian Income Tax to our visitors, so that they find it simple and easy to calculate their proposed expenses before hand."
Australian Income Tax system charges comparatively higher rates of income tax to residents than other countries in the world. For this reason, income tax department of Australia is a major source of revenue generation and contributes a great chunk of the total revenue collected by the government.
The Media Manager even expressed that "it's the love and trust of our clients' that we are able to come up with new ideas. In order to simplify the way we elaborate the Australian income tax scenario."
The maximum amount of income tax an individual is to pay is 45% of his/her annual income. The threshold above which income tax is applicable to residents is $6000. This is not same for foreigners, if they stay more than one year in Australia and have an income from Australian sources then only he is liable to pay income tax. The threshold for foreigners above which they have to pay income tax is $37,000.
Foreigners also pay 0-45% income tax according to the income they belong to. Even minor children under 18 years of age having income from part-time or fulltime employment are subjected to pay income tax. They can avail LITO just like adult tax payers, but income generated from investments returns are not considered under this scheme.
Along with the income tax, residents pay Medicare levy and flood levy but foreigners are exempted from Medicare levy. Flood levy has began after the 2010 Queensland floods and the residents pay 0-1.5% as flood levy, if they earn more than $50,000 per annum. Medicare levy is also 1.5% for tax payers, it enables them to have health benefits in future emergency and hence a very good move.
Family Tax Benefit or FTB is offered to residents of lower income groups and parents with dependent children. Individuals earning less than $30,000 are entitled to have a Low Income Tax Offset (LITO) of $1,500 on his total income tax payable.
Payroll tax is also paid by individuals and it differs from state to state, as per the cost of living and the income threshold of that particular state.
Company tax is a 30% flat of the total income generated by a corporation, through the dividend imputation system. Franking Credits are generated when a corporation pays income tax and the FC can be applied to dividend payments at a maximum rate of 30cents for each dollar.
Capital gains tax applies to individuals, companies and any other entity legally owning an asset. Partners pay separate taxes for the CGT made by partnership.
Assets owned for more than one year are entitled to 50% discount on CGT in case of individuals and 33% for superannuation funds.
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For more information, visit: http://www.australiaincometax.com