Australia, the state of Tasmania was the first to
introduce and implement income tax in 1880. The tax
collection was a form of withholding tax implemented
to all state-based companies’ distributed income.
The precedence was effective in generating revenue
and fund for Tasmania, which was then struggling to
survive a looming fiscal crisis. In 1884, South
Australia followed suit and became the second
Australian state to implement income tax collection.
By the year 1907, all Australian states have been
implementing and collecting income tax. Australia tax and tax office
is managed and run by the Australian Taxation
Office. The government agency functions as a
principal and sole revenue collection institution in
behalf of the Australian government.
The tax office is not an
independent legal entity, contrary to common
notions. Australian Tax Office is actually included
in the portfolio of the Commonwealth of Australia’s
What are the main responsibilities of the tax
office? The Australian Taxation Office is
responsibly managing the country’s revenue from tax
Taxes are collected in the form of income tax,
superannuation, goods & services tax and excise,
among others. Aside from collection system
management, the Australian Taxation Office is also
mandated to administer different refunds and
benefits, including GST and income tax refunds, baby
bonus, higher education loans for students and
superannuation guarantee. The Australia tax and tax
office has among the most organized and systematic
structures. The office is headed by the commissioner
of taxation, who is directly answerable for the
administration of the national taxation system.
He is appointed on a seven-year contract by
the Commonwealth government’s Governor-General. The
commissioner is backed and assisted by several second
commissioners, who are also appointed with the same term.
Aside from administration, the commissioner of taxation is
also responsible for releasing annual financial reports
annually. The report basically outlines the Australian
Taxation Office’s revenue generation, performance, targets
and previous achievements attained each year.
Some of the most revenue-generating tax collection forms are
personal income, corporate, goods and services, property,
excise, payroll, inheritance and superannuation taxes.
Personal income taxes take progressive tax rates that are
imposed based on individuals’ annual taxable income.
Corporate taxes are fixed at 30% of locally operating
companies and businesses. Good and services tax is imposed
on all products and services sold to the public. Its tax
rate is fixed at 10%.
Property taxes provide tax revenues for state and local
governments. The tax impositions are based on the area and
valuation of industrial, commercial and residential
properties. Excise taxes, also called sin taxes in other
countries, are generously collected from high-demand
unnecessary products like petroleum, alcohol and cigarettes.
Payroll taxes are applied by state governments to local
salaries, while inheritance taxes are imposed on inherited
assets. Private pensions, which comprise a growing sector in
the country, are taxed through minimal superannuation taxes.