The Goods and Services Tax (GST) is an indirect tax levied on most products and services in Australia. It is 10% and, although it is collected by businesses, it is actually borne by consumers in the final price.
That is, if you buy a product worth AU$100 ($65), you will pay AU$10 ($6.50) in GST.
Basic food, medical services, education and dominican republic phone number library other essential products or services are exempt.
Capital Gains Tax (CGT) is a tax levied on profits made when selling property, shares or other investments. To put it simply, it taxes the difference between the price at which you bought an asset and the price at which you sold it (if the value has increased). This is another tax where the conditions vary greatly depending on whether you are a resident or not.
Tax residents : are taxed on global profits, but can benefit from a 50% discount if the asset is held for more than 12 months before selling it.
Non-tax residents : are taxed only on profits from assets located in Australia and are not entitled to the 50% discount.
An example? and you buy a property for AU$500,000 ($325,000). After two years, you decide to sell it for AU$700,000 ($455,000). In this case, the capital gain would be AU$200,000 ($130,000) but you would be taxed on only half of the gain, i.e. AU$100,000 ($65,000). It is worth noting that CGT is added to your taxable income and is taxed at the same progressive rates as income tax , so the percentage of tax you will pay on this amount will depend on your income level.
Income generated by renting out properties is subject to income tax. However, expenses related to the maintenance of the property, such as repairs, mortgage interest and management fees, can be deducted.