Introduction
NOTE: More information is available on the Australian Taxation Office website (www.ato.gov.au).
A number of taxes are imposed by the federal and state governments. This chapter aims to provide you with an understanding of the obligations imposed on taxpayers by Australia’s tax system.
It will be most useful to you if you are an individual taxpayer, as it focuses on the taxation of your personal income. However, the chapter will also provide some assistance to you if you are a small business taxpayer or a not-for-profit organisation. Limited information is included about the GST and certain other business taxes, as well as some income tax provisions from a business standpoint.
The main sources of income tax law (collectively referred to in this chapter as ‘Acts’) are:
Income Tax Assessment Act 1936 (Cth);
Income Tax Assessment Act 1997 (Cth);
Taxation Administration Act 1953 (Cth); and
Income Tax Rates Act 1986 (Cth).
The Income Tax Assessment Act 1997 (Cth) represents a partial rewrite of the Income Tax Assessment Act 1936 (Cth). There are also a number of other pieces of related legislation and statutory regulations.
Taxation law is a complex area and, even armed with this chapter and the taxation publications mentioned below (see ‘Tax resources’, below), you may find it necessary to seek advice from the Australian Taxation Office (ATO) or a taxation adviser.
It must be remembered that this chapter can only provide the most general overview of Australian tax law and necessarily does not cover many of the complexities and contradictions in the law.
Tax law is subject to frequent change. While the information in this chapter is correct for the current income year, it may not be correct if you apply it to other income years, whether past or future.
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The chapter focuses on managing the administrative aspects of your tax obligations, rather than what it takes to calculate your tax liability. You can obtain general information concerning the income tax system from ATO publications, including further information on how to calculate your tax liability. The ATO oversees most of Australia’s federal tax system and is headed by the Commissioner of Taxation (‘Tax Commissioner’).
The Individual Tax Return Instructions 2024 and the Individual Tax Return Supplement 2024 are available on the ATO website (www.ato.gov.au/forms-and-instructions/tax-return-for-individuals-2024).
The ATO encourages individuals to lodge their income tax returns online using the myTax service, which is a streamlined tax return specifically for individuals with simple taxation affairs. myTax is available on computers, tablets and smart phones. More information may be found at the ATO website (www.ato.gov.au/individuals-and-families/your-tax-return/how-to-lodge-your-tax-return/lodge-your-tax-return-online-with-mytax).
In addition, there is the ATO app. You can use the app to access the ATO’s online services, including myTax, to lodge and track the progress of your tax return. You can also use the app’s myDeductions tool to record and manage work-related expenses, gifts and donations, interest, dividends and other deductions.
The ATO publishes a range of materials about Australia’s tax system. These publications are available from the ATO website (www.ato.gov.au) and the ATO legal database (www.ato.gov.au/single-page-applications/legaldatabase#Law).
There is also a range of private sector publications, including the Master Tax Guides, published annually by CCH Australia, and the Australian Tax Handbook, published by Thomson Reuters.
Introduction
Chapter: 5.5: Taxation
Contributor: Daniel Smedley, Principal and Accredited Tax Law Specialist, Sladen Legal
Current as of: 1 September 2024
Law Handbook Page: 346
Next Section: How is your income tax liability determined?
