b'ESV 11Doing business in AustraliaUnderstandingIndividualsIndividuals can be classified as residents or non-residents. A sub-class called temporary resident provides Taxation certain concessions predominantly in relation to non-Australian sourced income, and the Medicare Levy.Residents 2020/21Australias tax system is complex and varies greatly for different types of entities and structures conducting businessTAXABLE INCOME TAX ON INCOMEin Australia. Specialist advice is needed to guide overseas$1 - $18,200 NILbusinesses to ensure compliance and maximise profitability.$18,201 - 45,000 19c for each $1 over $18,200$45,001 - $120,000 $5,092 plus 32.5c for each $1 over $45,000Income Tax $120,001 - $180,000 $29,467 plus 37c for each $1 over $120,000$180,001 and over$51,667 plus 45c for each $1 over $180,000Resident taxpayers are subject to income tax based on their taxable income from all sources. Non-residents are taxed on taxable income from sources in Australia. The Medicare Levy of 2% of income is payable by residents in addtion to the income tax noted above.Resident companies and businesses from countries with which Australia has signed tax treaties are taxed at a rate ofThe Medicare Levy Surcharge of between 1% and 1.5% is payable for individuals without eligible private health 26% or on profits derived from carrying on business through a permanent establishment in Australia. insurance and earn more than $90,000.Assessable income may consist of ordinary or statutory income. Statutory income is set by legislation, for example,For the 2021 financial year, resident individuals with taxable income below $90,000 will receive the low and capital gains. middle income tax offset of up to $1,080.Tax on the sale of a Capital Gains Asset (CGT) is calculated by reference to the proceeds less the cost of acquiring that asset. Where a CGT asset is owned for more than 12 months by an individual or a trust and disposed of at a gain, the gain is discounted by 50% for residents (non-residents are no longer eligible for the 50% CGT discount).A taxpayer must be assessed prior to paying tax or an instalment amount can be calculated based on an earlierNon-Residents 2020/21assessment. Once an instalment amount has been calculated, regular tax instalments are normally required to be paid in advance with a balancing payment after year end.TAXABLE INCOME TAX ON INCOME$0 - $120,00032.5c for each $1$120,001 - $180,000$39,000 plus 37c for each $1 over $90,000$180,001 and over $61,200 plus 45c for each $1 over $180,000Income subject to Australian withholding tax is not required to be included in a non-resident individuals tax return eg. interest, royalties and dividends. This does not apply to amounts withheld on sale of real property, as this is a non-final tax and needs to be included in an Australian Tax return.To preserve entitlement to the general discount for capital gains accrued before 8 May 2012, non- residents with taxable Australian real property should arrange a valuation of the asset(s) as at 8 May 2012.'