Australia - Other taxes and levies
Australia - Other taxes and levies
Taxation of international executives
Social security tax
Are there social security/social insurance taxes in Australia? If so, what are the rates for employers and employees?
Employer and Employee
Type of Insurance |
Paid by employer |
Paid by employee |
Total |
Superannuation guarantee* |
9.5 percent |
0.0 percent |
9.5 percent |
Medicare levy** |
0.0 percent |
2.0 percent of taxable income |
2.0 percent |
Total |
9.5 percent |
2.0 percent |
11.5 percent |
* Rate of 9.5 percent is applied to a capped earnings level of AUD55,270 per quarter (2019/20 rates).
** Rate of 2.0 percent will be applied for the 2019/20 tax year. In some cases, a Medicare Levy Surcharge may be payable if the individual and their dependents do not have appropriate private hospital health insurance and the total of their taxable income and reportable amounts exceed the set thresholds. The rates that apply vary from 1 to 1.5 percent and apply to the total of their taxable income and reportable amounts; not just their taxable income.
Gift, wealth, estate, and/or inheritance tax
Are there any gift, wealth, estate, and/or inheritance taxes in Australia?
No.
Real estate tax
Are there real estate taxes in Australia?
Some states charge an annual land tax which is based on the value of land held in that state. If the property is your main residence, it will generally be exempt from the tax.
Sales/VAT tax
Are there sales and/or value-added taxes in Australia?
A goods and services tax (“GST”) of 10 percent applies in respect of most goods supplied and services provided in Australia.
Unemployment tax
Are there unemployment taxes in Australia?
No.
Other taxes
Are there additional taxes in Australia that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
Payroll Tax
Employers may be liable to payroll tax where the annual payroll exceeds certain threshold levels. Rates and thresholds vary between states.
Work Coverage
Compulsory workplace insurance must be acquired by employers in respect of employees working in Australia.
Foreign Financial Assets
Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?
No.
Disclaimer
All information contained in this publication is summarized by KPMG Australia Pty Limited, an Australian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on the Australian Income Tax Rates Act 1986, Superannuation Guarantee Charge Act 1992 and the Superannuation Guarantee (Administration) Act 1992, Medicare Levy Act 1986 and Income Tax Assessment Act 1936 Part VIIB, Australian Income Tax Assessment Act 1936 and Australian Income Tax Assessment Act 1997, the Australian Fringe Benefits Tax Assessment Act 1986, Australian Taxation Administration Act 1953, Part 2-5, Australian Income Tax Assessment Act 1997 Division 102 (section 102-5 is the operative provision which includes net capital gain in assessable income), Australian Taxation Office web site ATO assist at www.ato.gov.au or Tax Pack.
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