Australia Tax Compliance Map

Australia Tax Compliance Map

Email: mel4ww@evershinecpa.com

Australia CA Lily Yan, speak both English and Chinese
2/172-176 Rowe St Eastwood, NSW 2122, Australia

GLA – Australia Corporate Income Tax

GLA-AU-01 GLA Tax Entity

Question from client:
Is Australian corporate income tax a federal income tax? A local income tax? Or is there a federal and local income tax?
What if the federal income tax and the local income tax are levied separately or levied together?
What is the standard tax rate? What is the special tax rate?

Answer from Evershine RD:
All companies are Australia are subject to a federal tax rate.

Corporate Income Tax Tax Rate (2021/2022)
Base rate entities 25%
Otherwise 30%

Base rate entity company is a company if:

  1. the company’s aggregated turnover for that income year is less than the aggregated turnover threshold of A$50million (2021/2022).
  2. the passive income derives represents no more than 80% of its total assessable income for the year. Base rate entity passive income is:

*Corporate distributions and franking credits on these distributions.
*Royalties and rent.
*Interest income
*Gains on qualifying securities
*a net capital Gain
There are no state taxes on income in Australia.

GLA-AU-02 Registration

Question from client:
Which government unit is responsible for the collection of Australian corporate income tax?
The registration of the country’s corporate income tax status, that is, the tax certificate number application procedure, paper certificate number application?
Or online account application? URL?
What is the advance certificate number for applying for this certificate number?
Do I need to use the industrial and commercial certificate electronic card to apply?

Answer from Evershine RD:
Corporate income tax is governed by Australian Taxation Office at https://www.ato.gov.au/
You need an Australian Company Number (ACN) before you can get your Australian Business Number (ABN) and Tax File Number (TFN).
You can apply for a TFN when apply for an ABN.
Company can apply for a TFN online at https://www.abr.gov.au/business-super-funds-charities/applying-other-registrations/apply-tfn-business

You can also complete the application form at https://iorder.com.au/publication/Download.aspx?ProdID=3799-07.2016 and include any other attachments and send all these documents to the below address:
Australian Taxation Office
PO Box 3373
PENRITH NSW 2740
The TFN consists of a 9-digit number.

GLA-AU-03 GLA Order (OD)

Question from client:
What is the order of Australian corporate income tax return (information flow determines tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays? At the same time as the declaration and payment?

Answer from Evershine RD:
Deposit first (DF). Pay PAYG instalment and declare later.
You will pay PAYG instalments if you earn business and/ or investment income (which is also known as instalment income) over a certain threshold.
When you lodge the tax return, all the amount you paid during the year will be offset against any tax you owe for the year.
To make sure tax assessment considers the instalments you’ve paid throughout the year, you need to lodge the activity statements and pay all your PAYG instalments before you lodge your tax return.

GLA-AU-04 Mechanism of Filing (MOF)

Question from client:
What is the return method for Australian corporate income tax return (information flow determines the tax base)?
Filing cycle: monthly? Every bimonthly? Every season? every half year? Per year? Electronic filing? Manual filing?
Electronic filing and manual filing coexist? If electronic filing is possible: website URL?

Answer from Evershine RD:
You need to lodge your business activity statement (BAS) monthly.
The due date to lodge your monthly BAS is the 21st day of the following month, and due date for Quarter PAYG instalment activity statement is 21 of the following month of the quarter period.

You can lodge your BAS:
* with a registered tax or BAS agent
* online services in myGov, online services for business at https://onlineservices.ato.gov.au/business/  or SBR-enabled software
* by phone (for nil BAS statements only)
* by mail
You must also lodge the tax return with the following options:
* with a registered tax agent
* with standard business reporting (SBR) enabled software
* by paper

If you use SBR-enabled software, you can then report using information that’s already captured as part of the day-to-day operations of your business.
If you use paper to lodge your tax return, you can order a paper copy through ATO publication Ordering Service at https://iorder.com.au/publication/main.aspx and mail to
Australian Taxation Office
GPO Box 9845
[insert the name and postcode of your capital city]
Generally, the lodgment and payment date for small companies is 28 February.

GLA-AU-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for Australian corporate income tax payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:
The quickest and easiest way to pay ATO is with BPAY or a credit/ debit card.
Input the correct unique payment reference number (PRN) in the reference field every time you make a payment.
To pay online, go to https://onlineservices.ato.gov.au/business/

Other payment options include:
* Electronic transfer to Reserve Bank of Australia
* Direct debit – use Online services for business
* Mail payments slip and cheque to the below address:
Australian Taxation Office
Locked Bag 1936
ALBURY NSW 1936

PAYG instalments – Before PAYG instalments are due, ATO will send an activity statement or instalment notice letting you know when your payment is due and how much to pay.
Due date for PAYG instalments:

Quarter Period Due date
1 July – Sept 21 October
2 Oct – Dec 21 January
3 Jan – Mar 21 April
4 Apr – June 21 July

You need to make PAYG instalments monthly if the total instalment income from your most recently lodged tax return is A$20 million or more.
The due date is on or before 21st day of the following month.
If you are a deferred business activity statement (BAS) payer, your payment is due on the 28th of the following month.
Due date for final payment of Annual PAYG instalment notice is 21 October

VAT – Australia VAT

VAT-AU-01 VAT Tax Entity

Question from client:
Is Australia VAT federal VAT? Local VAT? Or is there a federal plus local VAT?
What if the federal VAT and local VAT are levied separately or levied together?
What is the standard VAT rate? What is the special VAT rate?

Answer from Evershine RD:
Australia GST is levied by the federal government at standard rate 10%.

VAT-AU-02 Registration

Question from client:
Which government unit is responsible for the levying of VAT in Australia?
The registration of Australia’s VAT levy status, that is, the application procedure for VAT certificate number, paper certificate number application?
Or online account application? URL?

What is the advance certificate number for applying for a VAT certificate number?
Do I need to use an industrial and commercial certificate electronic card to apply?

Answer from Evershine RD:
GST is governed by Australian Taxation Office (ATO).
To register GST, you need to have an Australian business number (ABN).
You need an ABN to register for GST, as the ABN is part of the GST system. The ABN will also be the GST registration number.
Login to https://onlineservices.ato.gov.au/business/, using myGovID, or by completing the Add a new business account (NAT2954) form.
When you register for an ABN and GST, the ATO will automatically send you a business activity statement (BAS) when it is time to lodge.

VAT-AU-03 WWT Order (OD)

Question from client:
What is the order of Australia’s VAT declaration (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? First declare and then pay? At the same time as the declaration and payment?

Answer from Evershine RD:
Same Period (SP) – Declare and pay at the same time.

VAT-AU-04 Mechanism of Filing (MOF)

Question from client:
What is the return method for Australia VAT declaration (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing?
Electronic filing and manual filing coexist? If electronic filing is possible: Website URL?

Answer from Evershine RD:
Lodge online via Online services for business at https://mygovid.gov.au/AuthSpa.UI/index.html#login
Alternatively, lodge through SBR-enabled software. This allows secure online lodgment directly from financial, accounting or payroll software, and often integrated with business software that’s tailored to specific industries.

You can also mail your original, completed BAS, using the pre-addressed envelope provided in your BAS package.
GST reporting and payment cycle will be one of the following:
Monthly – if your GST turnover is A$20 million or more.
Quarterly – if your GST turnover is less than A$20 million.
Annually – if you are voluntarily registered for GST and your GST turnover is under A$75,000.
Deadline for GST reporting and payment:
Monthly – 21st of the following month
Quarterly – 28th of the following month of the quarter
Annually/ Annual GST return/ Annual GST information report
– date of lodgment of your income tax return on 31 October or 28 February following the annual tax period if you are not required to lodge an income tax return.

VAT-AU-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for Australia VAT payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
OCT payment at the bank counter?
Or the above methods coexist?

Answer from Evershine RD:
GST reporting and payment cycle will be one of the following:
Monthly – if your GST turnover is A$20 million or more.
Quarterly – if your GST turnover is less than A$20 million.
Annually – if you are voluntarily registered for GST and your GST turnover is under A$75,000.
The due date for paying is displayed on the business activity statement (BAS). Use the right payment reference number (PRN), also referred to as an EFT code, when you make payments. PRN is the unique identifier that ensures your payment is credited to the correct account.
The quickest and easiest way to pay your business activity statement (BAS) is with BPAY, a credit card and debit card.
First login to Online services for business, select Accounts and payments and select Account summary, then find the relevant PRN and finalize your payment.

Please be aware of below Warning:
The above contents are digested by Evershine R&D  and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

Melbourne Evershine BPO Service Limited Corp.
E-mail: mel4ww@evershinecpa.com
Australia CA Lily Yan, speak both English and Chinese
2/172-176 Rowe St Eastwood, NSW 2122, Australia

For how to exchange data files between your Finance Accounting System and Evershine Cloud Accounting Information System, please send an email to HQ4mel@evershinecpa.com
Dale Chen, Principal Partner/CPA in Taiwan+China+UK will be accountable to your case.
Linkedin address: Dale Chen

Additional Information

Evershine CPAs Firm Headquarter
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Tel No.: +886-2-27170515 ext. 105
Mobile: +886-939357000
Email: kerrychen@evershinecpa.com
Skype: oklahomekerry

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(version: 2022/03)

Please send email to HQ4mel@evershinecpa.com

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