Many state funded institutions such as schools and hospitals function solely on the tax we pay. Therefore, we are paying for the services we avail.
Paying Taxes in Australia – What You Should Know?
A country like Australia also offers miscellaneous facilities to its citizens on the basis of the tax collected by its Government. There are different kinds of taxes charged on the citizens, and the amount varies depending on:
- The income earned by the person
- Whether the person is an Australian resident
- Whether the person possesses the Tax File Number (TFN)
The Tax File Number is the Personal Identity Number which the concerned person must share with their employer.
For Senior Citizens or the Elderly, there are a few differences as well. It includes their age, the income they make and a few other factors. For all the taxes paid, whether by a senior citizen or a regular young citizen, Tax Returns have to be filed as well.
Tax Returns refer to documentation which is filed with a Taxing Authority. That Taxing Authority is responsible for reporting income, expenses and other related information. There are various types of taxes that Australian citizens should know about in general.
| Types of Taxes Paid in Australia | |
| 1. Superannuation Taxes | Paid for the Superannuation program in Australia; whereby a superannuation fund is made available to the employee after retirement. |
| 2. Corporate Taxes | Paid by companies at 30% flat rate. |
| 3. Goods and Services Taxes | Paid at 10% by individuals who are registered to pay Goods and Services Tax (GST) on supply of services and goods. |
| 4. Tax on Inheritance | Not included as such, depends on evaluation of asset value. |
| 5. Excise Tax | Levied on petrol, cigarettes and other Elastic Goods. |
| 6. Property Taxes | Imposed on the value of land. |
| 7. Payroll Taxes | Differ according to circumstances. |
| 8. Income Taxes | Paid by the taxable group of people in all of the Australia. |
Filing Tax Returns is important because it:
- Exhibits your responsible nature
- Can be useful for revised returns
- Can help in claiming adjustment against past losses
- May be mandatory for some cases
Filing Tax Returns greatly allows the government to determine the amount and means of every citizen’s occurring expenditure.
Senior citizens above the age of 65 are usually not required to lodge a tax return, and can instead apply for the Australian Government pension if they meet the required criteria. Websites like the taxreturn.com.au are quite helpful if you as a Senior Citizen want to get accurate information as well as avail services related to Tax Filing, considering how complicated these matters are.
It is recommended that citizens especially Senior Citizens get the accurate information from a credible source as the Australian Taxation Office to avoid being scammed.
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