Taxes and duties that are levied by state and territory governments include:
- Stamp duty ( duty in Australia capital territory, New South Wales, western Australia, victoria)
- Payroll tax
- Land tax
The requirements for these taxes and duties may vary from states to states; business organization should clarify all the taxes from their local revenue office to conduct its operation effectively.
Stamp duty is a State tax on written documents and certain transactions, such as:
- motor vehicle registration and transfer
- insurance policies
- leases and mortgages
- hire purchase agreements
- transfers of property (such as businesses, real estate or shares).
The rate of stamp duty varies according to the type and value of the transaction involved. Certain concessions and exemptions may be available depending on the nature of the transaction.
Payroll tax is a State tax on the wages paid by employers. When the total wages exemption threshold is exceeded, employers are liable for payroll tax. Exemption thresholds vary between States.
Payroll tax is not the same as PAYG withholding tax, collected by the Tax Office. PAYG is the tax deducted from an individual’s income and forwarded to the ATO. Payroll tax is payable to the State by an employer, based on the total wages paid to all employees.
Definition of wages for payroll tax is:
- Superannuation contributions
- Fringe benefits
- Shares and options
The following organisations are generally exempt from payroll tax provided specific qualifying conditions are satisfied:
Land tax: Land tax is imposed in all states but not in the northern territory. It is a tax imposed on landowners- except in the ACT where it applies to all residential properties that are rented or owned by a trust or corporation.
Some organizations which are free from land tax are:
- Non-profit organization
- Religious institutions
- Public benevolent institutions
- Charitable institutions