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What Is Taxation?

Taxation is a means to which government cover their expenditure by commanding some charges on citizen and business entities. The government imposes a different type of taxations; these are like;

• Superannuation taxes :- it is the pension program in Australia, in which employees contribution forms a superannuation fund. The employer of the company saves some amount from the employee’s salary into the fund. So that after the retirement of the employee that fund is provided to them with some incentives.
• Corporate tax :- every country has a different slab for companies, Australia impose a 30% flat rate of corporate tax. Enterprises, as well as corporate, have to pay 30% to the government of Australia for profit earned. Corporate tax is paid by companies to the government in before the shareholders. They follow a particular method called franking credit through which shareholders can make the deduction to their income tax.
• Goods and services tax :- on the distribution of goods and services Australian government imposes 10% tax. This charge is taken from them who have registered under GST (goods and service tax). Some fields are free from GST these suppliers are; education related, medical, exports, and food products. The profit earned from the GST is distributed in states of Australia.
• Excise tax :- it is mainly imposed on cigarettes, petrol, and alcohol. This tax is taken on elastic goods. Elastic goods are those whose demands are always there in the market even if cost increases or decrease.
• Property tax :- Australian state government largely depends upon the property tax. The government takes tax from industrial houses, commercial complexes, and residential complexes. Sometimes government imposes the tax on the value of land, mainly when the value of the property is very high.
• Payroll taxes :- taken by the state government, its rate differs in different circumstances.
• Income tax :- deducted from the income of the individual who comes under the taxable society of people. Income tax is the principal source of revenue for the government.

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