Private Client jurisdictional guide—Australia
Produced in partnership with PGG Legal Services and Donald Gordon of Senadheera & Gordon

The following Private Client practice note produced in partnership with PGG Legal Services and Donald Gordon of Senadheera & Gordon provides comprehensive and up to date legal information covering:

  • Private Client jurisdictional guide—Australia
  • Taxation regime
  • What factors determine tax liability in your jurisdiction (eg domicile, residence or citizenship)?
  • What taxes apply to an individual’s income?
  • What taxes apply to an individual’s capital gains?
  • What taxes apply to lifetime gifts (outright or into trust) made by an individual?
  • What taxes apply to transfers on death and to an individual’s estate following death?
  • What taxes apply to an individual’s real property?
  • Are there any other direct or indirect taxes that apply to individuals in your jurisdiction?
  • How are charities taxed in your jurisdiction?
  • More...

Private Client jurisdictional guide—Australia

Taxation regime

What factors determine tax liability in your jurisdiction (eg domicile, residence or citizenship)?

Liability to tax in Australia is generally determined on the basis of residence and source of income. A resident of Australia is taxed on their worldwide income. A non-resident is taxed on income that has its source in Australia and on capital profits made on taxable Australian real property. Residence for these purposes is defined by the federal tax law for individuals, companies, trusts and other types of taxpayers. In addition, Australia is party to a number of international tax agreements which also define residence. Federal tax law and the various international tax agreements contain the rules used to determine the source of various types of income, such as business profits, royalties, interest and dividends.

What taxes apply to an individual’s income?

An individual’s annual income is subject to federal income tax, which is calculated at marginal rates on the gross income of the individual, net of allowable deductions, and adjusted for various rebates, offsets, credits and concessions. In some circumstances, income may include non-cash benefits or property. There is no state income tax.

The marginal rates for resident individuals for the tax year ended 30 June 2021 are between 19% and 45%, subject to a tax-free threshold of A$18,200. Unearned income of minors may be subject to higher rates of

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