Taxes in Australia
- No inheritance or estate taxes
- No tax on dividends
- GST (VAT) – 10%*
- Corporate tax – 27.5%
* Companies registered as a GST payee, will have the tax refunded on a quarterly basis, together with any GST paid on imports.
After paying the corporate income tax, foreign investor withdraws any income from Australia without paying any additional taxes.
It is important to keep in mind that there are many tax optimization options in Australia, from trusts to offshore lending arrangements.
When purchasing land plots, a “stamp duty” is paid, which is 2-3% of the total price. The annual land tax, varies by state, but on average is 2-4% of the cadastral value.
Australia uses a progressive tax scale system for the purposes of taxing individuals. Under this system, the rate of tax payable increases as taxable income increases.
Income tax rate ranges from 19% to 45% (for incomes of more than AU$ 180,000 per year).
Financing options in Australia
Project financing in Australia is done through banks or through loan brokerages.
The bank interest rate starts from 3.9% per annum, depending on company track record and history.
Brokerage rates start from 8.5% per annum, and can reach 18%, depending on the stage of the project, existing pre-sales and the type of financing required (mezzanine, stretch, preferred shares, etc.)
Comparative tax table
Federal rate – 15%, other – 5.5%, state tax: 14-17%
Federal rate – 21%, state tax: 3 – 12% (44 out of 50 states)
Federal rate: 10-38%, province tax: 11.5-16%
Concession rate of 27.5% for companies with an annual turnover of less than AU$ 25 million
Concession rate of 15% for startups in the first year and for small businesses (income including VAT on goods and services less than EUR 1.2 million)
Exception for investment (5%) and pension (0%) funds
Fixed rate; may be increased depending on the region (product tax from 3.9%)