Australian tax and social security requirements can be complex. For starters, different rates apply to residents and foreign residents: residents’ rates rise progressively from 19% to 45% (the first AU$18,200 is exempt), while foreign resident rates start at 32.5% with no exemption. Income tax is withheld on a ‘pay as you go’ basis, from which employers should then file the funds with the Australian Tax Office.
Employers should also watch out for state payroll taxes, the Fringe Benefits Tax (FBT) that targets car allowances and other perks, and the Goods & Services Tax of 10% on most things sold in Australia.
Social security contributions include Medicare (1% employer, 1% employee), and the Superannuation retirement fund (10% employer, 10% employee, up to a maximum of around AU$21,0000 per year).
Corporate tax is levied at 30%, reduced to 25% for small and medium-sized businesses.