Accounting and legal

Accounting and tax

accounting and taxation information for Australia company

  1. Companies in Australia pay corporate tax at i) a reduced rate of 28.5% if the annual turonver is less than AU$2 million or ii) 30% otherwise. Tax returns must be filed annually before i) January the 15th by companies with turnover over US$2 million or ii) February the 28th for other companies;
  2. The standard GST rate is 10%. GST returns are to be submitted on a quarterly basis, except for businesses with over US$20 million of turnover which must return their filings every month;
  3. From December 2015, the Australian tax office will publish basic tax information for all majority foreign-owned companies. The information will include i) the company name ii) the company’s total income iii) the company’s taxable income and iv) how much tax is payable by that company in Australia. Companies with a net loss will show 0 profits, rather than the quantum of the loss;
  4. Dividends and capital gains received from both Australian and global subsidiaries are subject to a reduced corporate tax rate of up to 15% if i) the shares have been held for 1 year and ii) represent over 10% of the subsidiary’s share capital. If otherwise, the standard 28.5% tax rate applies;
  5. Dividends paid to both Australian and foreign parent companies are withholding tax-exempt, provided corporate tax has been paid on the subsidiary’s profits. If otherwise, withholding tax is levied at the standard corporate tax rate, unless reduced by a tax treaty;
  6. Interest paid to foreign entities are subject to a 10% withholding tax, unless reduced by a tax treaty;
  7. Sales and transfers of real estate are subject to a property tax levied at rates fixed by local authorities and of up to 7%;
  8. Employers must pay contributions to the Social Security and Unemployment Insurance Fund representing 13% of their employees’ gross salaries. They must also pay a 46% tax on all fringe benefits provided to their workforce;
  9. Employers are required to withhold payroll tax due on all employees’ wages and benefits. Averaging 5.5%, payroll tax rates are fixed by local authorities;
  10. Australian companies may carry forward their business losses indefinitely. However, carry forward of capital losses are only allowed to be offset against capital gains. Carry back of losses is furthermore partially allowed;
  11. Australia has signed double taxation treaties with 50 countries including Canada, China, France, Malaysia, Singapore, the United Kingdom and the United States to reduce withholding tax on payments abroad;
  12. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis.
  13. For an active trading company, these accounting and tax fees are an estimate of Healy Consultants fees to efficiently and effectively discharge your annual company accounting, auditing and tax obligations. Following receipt of a set of draft accounting numbers from your company, Healy Consultants will more accurately advise accounting and tax fees. For a dormant company, Healy Consultants fees are only US$950;
  14. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Legal and compliance

During Australia business registration, Healy Consultants Compliance Department guides our Client through legal and tax obligations.

  1. Every Australian business must lodge an Annual Return in which a director or secretary of the company confirms relevant details for the Australia Companies Register including names and addresses of all directors, address of principal place of business and details of shareholders and their shareholdings;
  2. In accordance with Section 201A of the Australia Corporations Act 2001, every Australian registered company shall have at least one director who is ordinarily resident in Australian. Most of our Clients request Healy Consultants to be the resident director. If required, Healy Consultants Australia resident director service fee amounts to AU$5,910 per annum;
  3. An Australian company secretary is not required, however we recommend one be appointed to ensure compliance with Australia Corporations Act;
  4. The identities of shareholders and directors are on the Australian Business Register (ABR), which enhances commercial transparency. A search of the Australian business register is available on the Australian Business Register (ABR) website;
  5. When pursuing business registration, it’s important to find out what registrations and licences apply to your firm. This can be complex area; as local, state, territory and federal governments handle registration and licensing for various aspects of Australian company;
  6. For an Australian registered company to be listed on the national stock exchange, the ASX must be satisfied with i) the profit/asset test ii) the shareholders spread and iii) the prospectus memorandum;
  7. The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants fee to project manage company de-registration is US$1,450. During this 6 months period, it is mandatory to maintain a resident company secretary and a legal registered office;
  8. Read more about Australia reporting obligations;

Contact us

For additional information on our accounting and legal services in Australia, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Karen Lee, directly:
client relationship officer - Karen
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