A tax may be defined as a charge, which the government imposes on income, any activity or commodity. The main aim of taxation in any country is to provide finance for expenses related to the government. Financing services as well as goods is also a reason for levying tax.
Taxation in Australia is taken care of by the ATO or Australian Taxation Office. The Australian Taxation Office is the main agency for the collection of revenue. The Australian Taxation office collects about 92 percent of the total revenue of the government.
Role played by the Australian Taxation Office or ATO:
Taxation in Australia can be of various types. Administered by the Australian Taxation Office, it supervises taxation procedures imposed on the following:
Goods and Services tax
Australian Business Number (ABN)
Australian Business Register (ABR)
Income tax
PAYGI as well as PAYGW ( pay as you go withholding and installments).
Fringe benefits tax
Luxury car tax or LCT
Superannuation
Excise duty
Wine Equalization Tax (WET)
Tax on higher education
Grants pertaining to alternative fuels as well as diesel
Schemes pertaining to diesel as well as alternative fuels
Taxation in Australia and sliding scale:
For the fiscal year 2007-2008, sliding scale manifests the following capital gains tax:
When the capital gain is less than 6,000, the tax levied is 0 percent.
When the capital gain ranges between 6,001 to 30,000, the tax imposed is 15 percent.
30 percent is the tax levied on a capital gain ranging between 30,001 and 75,000.
For capital gain between 75,000 to 150,000, the tax imposed is 40 percent.
If the capital gain is more than 150,000, tax levied is 45 percent.
Taxation in Australia is also calculated on different types of taxes in Australia.