Each tax system is unique and Australia's has its own interesting features offering opportunities and the inevitable pitfalls. Please contact us if you would like your questions answered.

Overview
The main points (more details are available in our factsheets, or by contacting us) are:

• The tax year in Australia runs from the 1st of July to the 30th of June.
• Almost every tax resident person in receipt of income (which includes capital gains under the legislation) has to lodge a return with the Australian Taxation Office.
• Returns must usually be lodged by 31st of October following the end of the income year, although they may be lodged after that date when they are lodged through an authorised tax agent.
• Returns can be filed electronically, provided it is transmitted using software approved by the Australian Taxation Office.
• For tax year 2001-02 the first $6,000 of an adult Aussie tax resident's income is not taxable - this is called the tax free threshold and may be considered to be the same as the personal allowance in the UK.
• The rates of tax for tax year 2001-02 can be downloaded from the link below.
• Certain credits, offsets and rebates reduce the net tax payable - see the downloadable factsheet below.
• A Medicare Levy is generally payable by Aussie tax-residents at the rate of 1.5% of all taxable income.
• A Medicare Levy Surcharge may be payable by certain higher income earners if the taxpayer, the taxpayer's spouse, and all dependants are not covered by private health insurance of a prescribed nature.
• A non-resident who has income that is taxable in Australia does not receive a tax-free threshold, and will pay tax at a higher rate than an equivalent Aussie tax resident.
• Certain types of income paid from an Australian source to a non-resident will be subject to withholding tax, which is deducted from the gross payment at source. The rate of withholding tax will depend on whether Australia has a double tax agreement with the country where the recipient taxpayer is a resident - for example, withholding tax at the rate of 10% is applied to a UK-resident receiving interest on a bank deposit in Australia.
• The issue of when an individual becomes tax resident in Australia (and ceases to be so) is complex - more guidance in our factsheet on the subject.
• Capital gains are taxed as income, but are subject to a very valuable discount if the asset sold has been owned for at least 12 months.
• Importantly, for a person owning a chargeable asset and moving to Australia, the base cost of that asset for capital gains tax purposes is the value when that person becomes tax resident in Australia. Note - this potentially allows a UK migrant owning assets with gains to completely wash out the gain from a charge to tax.
• An individual taxpayer should obtain a Tax File Number (TFN) from the Australian Tax Office as in the absence of a TFN an amount of tax at the maximum marginal rate plus the Medicare levy (ie 48.5%) will be withheld from the payment.

Please click on the links below for further information relating to this subject. These files are pdf files and will require you to have Adobe Acrobat Reader installed.

Downloadable pdf's:

•  Tax rates for 2001/02 - resident and non-resident individuals
•  Medicare Levy Surcharge thresholds for 2001/02
•  Capital Gains Tax - Indexation Factors

To request further free factsheets please click here.

Moving to Australia? - contact Collett & Co Chartered Accountants
Or visit our sister site, gomatilda.co.uk