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International tax treaties aim to avoid double taxation and prevent tax evasion on income and assets that cross borders between treaty countries.;Australia has tax treaties with many countries, providing mechanisms for resolving tax disputes and allocating taxing rights.
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Salary sacrificing allows employees to allocate a portion of their pre-tax income to benefits like superannuation, reducing their taxable income.;Common benefits include additional superannuation contributions, car leases, and electronic devices, which can provide tax savings.
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Contributions to superannuation funds are generally taxed at a concessional rate, while withdrawals are taxed depending on the age and circumstances of the individual.;Tax-free withdrawals are possible under certain conditions, such as reaching preservation age and meeting retirement criteria.
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Owners of investment properties in Australia must pay income tax on rental income, capital gains tax on property sales, and may be eligible for various deductions.;Common deductions include interest on loans, maintenance costs, and depreciation on the property and its contents.
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A Tax File Number (TFN) is a unique identifier for individuals and businesses, used for tax administration and ensuring correct tax payments.;Having a TFN is essential for lodging tax returns, applying for government benefits, and managing superannuation contributions.
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The Australian Taxation Office (ATO) is responsible for collecting revenue, administering the tax system, and ensuring compliance with tax laws.;The ATO provides guidance, processes tax returns, conducts audits, and offers dispute resolution services.
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Tax evasion in Australia can lead to severe penalties, including fines, interest on unpaid taxes, and imprisonment for serious offences.;The ATO conducts audits and investigations to detect and prevent tax evasion, and encourages voluntary disclosure to reduce penalties.
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Capital gains tax in Australia is calculated based on the profit from the sale of an asset, with discounts available for assets held longer than 12 months.;Individuals must report capital gains in their tax returns, and certain exemptions, such as the primary residence exemption, may apply.
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Small businesses in Australia can claim deductions for operating expenses, depreciation of assets, and certain startup costs.;Eligible businesses may also benefit from tax concessions like the instant asset write-off and the small business income tax offset.
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The Goods and Services Tax (GST) in Australia is a 10% tax on most goods and services sold or consumed, with some exemptions.;Businesses must register for GST if their annual turnover exceeds the threshold, and they can claim credits for GST paid on business expenses.
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