Guide
Australian taxes at a glance: beyond GST
A map of the main taxes administered by the ATO and by the states, and where GST fits.
Income tax
Income tax is the biggest federal tax. Individuals pay tax on their taxable income at progressive rates, with a tax-free threshold and a Medicare levy. Companies pay tax on their taxable income at a company rate, which is lower for qualifying small companies. Rates and thresholds are reviewed in the federal budget, so use the ATO site for current numbers.
PAYG withholding and PAYG instalments
Employers withhold tax from wages and pay it to the ATO, which is credited to the employee. Businesses and investors with income that is not subject to withholding may pay PAYG instalments during the year so that they are not left with a large bill at tax time.
Superannuation
Employers must make superannuation guarantee contributions for eligible employees into a super fund. The rate is set by law and has been increasing in steps, so check the current rate with the ATO. Self-employed people can make their own contributions.
Fringe benefits tax
Fringe benefits tax is paid by employers on certain non-cash benefits given to employees or their families, such as private use of a car. The FBT year runs from 1 April to 31 March.
Capital gains tax
Capital gains tax applies when you sell an asset for more than it cost. It is not a separate tax but part of income tax. Individuals who hold an asset for more than 12 months can generally reduce the gain by 50%, and there are concessions for small business owners and for your main residence.
State and territory taxes
The states and territories collect payroll tax, stamp duty, land tax and other taxes. These are not administered by the ATO and the rules differ in each jurisdiction. If you are a business owner, check with your state revenue office.
Where GST fits
GST is a federal consumption tax administered by the ATO. A small business may deal with GST, PAYG withholding, super and income tax at once, which is why many use a bookkeeper or registered agent. Keep your obligations in a calendar and set money aside as you earn it.
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