INDIVIDUAL TAXESSIGNIFICANT DEVELOPMENTS
Resident individuals are entitled in 1997/8 to a tax offset at the rate of 7.5%(maximum A$225) for savings, investment income and undeducted superannuation contributions. Legislation before parliament threatens to repeal this offset form 1998/2000.
From January 1, 1999 a 30%non-means-tested tax offset applies for expenditure on private health insurance, and replaces a previous incentive.
Legislation before parliament proposes to take into account the grossed-up taxable value of an individual's fringe benefits from April 1, 1999 when determining eligibility for tax surcharges, such as the Medicare levy and superannuation contributions surcharge and income-related obligations such
as child support. The non-grossed-up value will be taken into account in assessing certain income-tested government benefits.
As part of its tax reform package, the federal government proposes that the following new personal income tax rates will apply from July 1,2000.
TAXABLE INCOME TAX ON PERCENTAGE
OVERE NOT OVER COLUMN 1 ON EXCESS
(COLUMN 1)
0 A$6,000. .............. _ 0
A$6,001 20,000............... _ 17
20,001 50,000............A$ 2,380 30
50,001 75,000............ 11,380 40
75,001.......................................... 21,380 47
The personal income tax rate changes may not eventuate if the governor's tax reform proposals are rejected in the Senate, as the government lacks a Senate majority.
TERRITORIALITY AND RESIDENCE
Australia taxes its resident individuals on a worldwide basis. Resident individuals are liable to Australian tax on income derived from all foreign sources, except for salary and wages derived in performing duties overseas for a continuous period of at least 91 days, provided these earnings are not exempt from tax in the foreign country in which they are
earned. A tax credit is allowed for foreign taxes paid on taxable income derived from foreign sources(see "Tax credits" below).
Certain income is taxed as it accumulates in low-tax countries(see "Tax credits" below).
Individuals are residents of Australia if they reside in Australia, and this includes the following.
1. Individuals whose domicile and permanent place of abode is in Australia.
2. Individuals who have actually been in Australia during more than one-half of the year of income, unless the individual's usual place of abode is outside Australia and the individual does not intend to reside in Australia.
Persons coming to Australia to take up a contract of employment may be regarded as residents even if they are to be in the country for a short term of, say, two or four years. Citizenship and nationality do not determine liability to Australian income tax.
A nonresident individual is liable to Australian income tax only on income (other than interest and dividends) derived from sources in Australia.
Nonresidents are subject to withholding tax on (1) interest income p
[1] [2] [3] [4] 下一页
