Each state and territory in Australia imposes taxes on a range of transactions/events affecting matters in the state/territory. Whilst the states and territories have attempted to take a uniform approach to taxation there are significant differences in the tax base, exemptions, rates and rights to object/appeal and seek refunds.
Payroll tax is a tax levied on wages paid by employers to their employees. Whilst there are common provisions and definitions between states, the requirements, liabilities and rates of tax vary from state to state, and each administrator differs in how they interpret various requirements.
As payroll taxes make up a large proportion of an entities’ taxes, it is important for employers to ensure that they have adopted the appropriate tax treatment and that those treatments are reflected in their internal tax policies.
In our experience the key areas requiring focus to ensure that errors are not made and there is no exposure to penalties include ensuring that:
Stamp duty is a tax imposed by individual states and territories on various transactions either at a fixed rate or at an “ad valorem” rate on the value of the transaction. In general, duty is imposed on the transfer of dutiable property or conveyances of property. Duty can also be imposed on (but is not limited to) declarations of trusts, surrenders of interest in land, foreclosures of mortgages and vesting of dutiable property as a consequence of a court order and certain leases.
The transfer of shares or units in certain landholder corporations and unit trusts which have an interest in dutiable property can also attract a duty known as landholder duty. These laws seek to ensure that duty on the transfer of land is not avoided by transferred shares or units in land-holding entities, rather than the land itself.
It is important to consider stamp duty implications when undergoing any acquisitions or restructures that directly or indirectly involve the transfer of dutiable property.
Land tax is an annual tax on the ownership of land. Broadly, it is a tax charged on the unimproved value of land above a certain (jurisdiction dependant) value threshold.
Depending on the jurisdiction, how your obligation is calculated can depend on:
The unimproved value of land is generally taken from local council valuations. Therefore it is important to check the value notified in rate notices to protect your objection rights.
Other state taxes include:
Click here to view a summary of the key state taxes and their rates.
We have extensive experience acting for individuals, small-medium sized enterprises and multinational corporations in state tax matters. Predominantly, we can assist you with the following: