These emails are designed for those investing into Australia and those who have plans to do so. We aim to keep the points short and sweet, and to merely list snippets of relevant but easy to read information.
- Income tax (covering companies and individuals) and company law are both Federal – covering all of Australia, despite Australia having several states and territories.
- An ABN (Australian Business Number), essential for doing business in Australia, can take several months to obtain where there are overseas directors or shareholders.
- Australians are ‘city slickers’. In 2021, Australia’s urbanisation rate reached 86 percent.
- A non-resident individual is taxed in Australia on 100% of the capital gain on the sale of a residence, even if it was their principal residence. Example: Bought in 2000 for 1m, lived in it from then until 2021, moved abroad in 2021 (market value 2.2m), sold it for 2.5m in 2023 – taxed in Australia on 1.5m.
- ‘Thongs’ in Australia is something worn on the feet. Known in some countries as flip-flops. Borat’s thongs are not footwear.
- Australia’s dividend withholding tax rate is 30%.
- In many cases, an Australian company paying a dividend to a non-resident does not need to withhold tax.
- Australia’s domestic interest withholding tax rate is 10%. Tax treaties rarely reduce it.
- The Australian mammals, Platypus and Echidnas, are the only two mammals in the world that lay eggs to give birth.
- Australia’s royalty withholding tax is 30%. This also applies to lease payments for equipment to a lessor abroad. Treaties invariably reduce this.
This message is not given in the form of an opinion, legal opinion or tax advice. If any of the information provided is of interest or relevance to you or your company we would strongly recommend you contact us or another qualified professional for specific advice.