Australian federal and state governments. The law is primarily governed by the federal tax act, the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997. The Australian Taxation Office (ATO) is responsible for administering the tax law and collecting taxes on behalf of the federal government.
The federal government has the power to impose income tax, goods and services tax (GST), capital gains tax (CGT), and other taxes, while the state governments have the power to impose payroll tax, stamp duty, and land tax.
In Australia, individuals are taxed on their taxable income, which includes most forms of income such as salary and wages, business income, investment income, and foreign source income. Companies are taxed on their taxable income, which is the company’s profit after deducting expenses.
It’s important for individuals and businesses to understand and comply with their tax obligations, as non-compliance can result in fines and other penalties. The ATO provides information and guidance on tax obligations, and individuals and businesses can seek professional advice from tax lawyers or accountants to ensure they are meeting their obligations.