With all these different tax types, it's no wonder people regularly consult with tax planning attorneys to develop strategies to minimize their tax liability. In Australia, taxes, duties, and fees are collected by various levels of government to fund their programs and services.
The three tax levels include federal, provincial/territorial, and local taxes. It's important to understand what differences apply to you as a full-time citizen or as a business owner. This is where tax management and strategy development come in handy from https://www.motionaccountancy.com.au/tax-planning-service/ in simplifying and complying with the provisions of tax laws and related regulations.
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The common types are consumer taxes and excise, which are applied to the manufacture, sale, or consumption of goods and services. This is a form of indirect tax. Excise tax is collected by producers or retailers and is not paid directly by consumers. As a result, they are often "hidden" in the price of a product or service instead of being listed separately.
Another common type of tax is the import/export tax. Import duties and taxes apply to the import of goods into that country, whether from individuals or commercial companies. Apart from customs, imports may be directed to other taxes like PST (Provincial Sales Tax), GST (General Sales Tax), or unification of both, depending on the type of importer and the taxes. The amount of duties and taxes that must be paid depends on where the importer resides and not on where the goods enter the country.
These are just some of the basic types of taxes that are usually paid in Australia. Therefore, it is advisable to consult with tax professionals and seek their assistance in managing and developing strategies for paying and minimizing taxes.