Income tax is a tax that the Federal government levies on the financial income of both individuals and businesses. Currently, all businesses and the majority of individuals are required to file an income tax return each financial year. Generally speaking, the purpose of an income tax return is to determine whether or not you are eligible for a tax refund, or whether you owe any money to the ATO. Income tax from businesses and individuals is one of the main sources of income for the government, with the money being used to fund government activity and public works.
The majority of governments, both Federal and State are funded through the taxation of individuals and businesses. If you are an individual, your income tax is deducted from your wage or salary by your employer. If you are a business, the income tax you pay is determined once you have completed your tax return for the financial year. Income tax has often been described as a ‘progressive tax’ meaning the amount of tax that you pay increases depending on the amount of income you receive.
Generally, the income tax rates for individuals will vary slightly for each financial year. For example, the individual income tax rates for the 2015 – 2016 financial year were:
|
Taxable Income |
Tax on your Income |
|
0 - $18,200 |
No tax payable |
|
$18,201 - $37,000 |
19 cents for each $1 over $18,200 |
|
$37,001 - $80,000 |
$3,572 plus 32.5 cents for each $1 over $37,000 |
|
$80,001 - $180,000 |
$17,547 plus 37 cents for each $1 over $80,000 |
|
$180,001 and above |
$54,547 plus 45 cents for each $1 over $180,000 |
At Navado, we have a dedicated team of income tax lawyers who can assist you with the following income tax related issues:
- Individual PAYG (pay as you go) tax;
- Income tax advice for Australian residents and non-residents;
- Representation in Court;
- Tax debt advice;
- Capital Gains Tax (CGT);
- Fringe Benefits Tax (FBT);
- The effect of income from a family trust and trust distributions;
- Bankruptcy;
- Tax planning and tax minimisation; and
- Legal advice on tax deduction.
Tax offences that are committed in Australia vary from the deliberate evasion of a person’s taxation obligations, to minor violations of the tax laws by people who do not fully understand their obligations. If you require income tax advice, you can speak with one of our tax lawyers. To book a consultation, please contact our firm by telephone on (02) 9233 4048 or by email at info@navado.com.au.
This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.
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If you require assistance with a Tax matter, you should make an appointment to see one of our Lawyers in one of the following locations:
- Sydney
