Tax Law Lawyers in Queensland

Tax Law in Queensland

Australian taxation is primarily governed by federal legislation administered by the Australian Taxation Office (ATO). Queensland taxpayers and businesses navigate income tax, GST, capital gains tax, fringe benefits tax, and various state taxes including payroll tax and transfer duty. Tax lawyers provide advice on tax planning, compliance, disputes, and structuring to minimise tax obligations within legal bounds.

Income Tax

Income tax applies to individuals, companies, trusts, and partnerships on assessable income. Queensland residents pay federal income tax with rates depending on income levels and entity types. Individuals receive tax-free thresholds and marginal tax rates up to 45% plus Medicare Levy. Companies pay 25% or 30% depending on size and type. Tax lawyers advise on minimising tax through legitimate deductions, offsets, and concessions including small business CGT concessions, research and development incentives, and negative gearing strategies.

Goods and Services Tax (GST)

GST is a 10% tax on most goods and services sold in Australia. Queensland businesses with turnover exceeding $75,000 ($150,000 for non-profits) must register for GST. Registered businesses charge GST on taxable supplies, claim input tax credits on business purchases, and lodge Business Activity Statements (BAS) reporting GST collected and paid. Some supplies are GST-free (food, health, education) or input-taxed (financial services, residential rent). Tax advisors ensure correct GST treatment and compliance.

Tax Disputes

Tax disputes arise from ATO audits, amended assessments, transfer pricing adjustments, or denied deductions. Queensland taxpayers can object to assessments within prescribed timeframes, typically two or four years depending on the tax type. Unresolved objections can be appealed to the Administrative Appeals Tribunal or Federal Court. The ATO's dispute resolution service offers early resolution through facilitation. Tax lawyers represent clients in objections, appeals, and litigation, and negotiate settlement agreements.

ATO Audits

ATO audits examine taxpayers' compliance with tax laws. They can be random or triggered by data matching, industry benchmarks, or risk profiling. Audits involve requests for information, interviews, and detailed review of records. Taxpayers have rights including representation by tax agents or lawyers, reasonable timeframes, and review of adverse findings. Tax lawyers manage audit processes, respond to information requests, and challenge unreasonable positions.

Tax Planning and Structuring

Effective tax planning minimises tax within legal bounds through appropriate business structures, timing of income and deductions, and utilising concessions. Queensland businesses choose between sole trader, partnership, company, and trust structures based on tax, asset protection, and succession objectives. Family trusts offer flexibility for income distribution. Companies provide certainty and limited liability. Hybrid structures combine benefits. Tax lawyers advise on optimal structures and restructuring when circumstances change.

Capital Gains Tax (CGT)

CGT applies to profits from selling assets including property, shares, and businesses. The main residence exemption excludes family homes. Small businesses receive generous CGT concessions including 15-year exemption, 50% active asset reduction, retirement exemption, and rollover relief. Queensland property investors calculate CGT on investment properties considering holding period, improvements, and selling costs. Tax planning can significantly reduce CGT through timing sales, using concessions, and structuring ownership.

State Taxes in Queensland

Queensland imposes several state taxes. Payroll tax applies to employers with Australian wages exceeding the threshold (currently $1.3 million for Queensland-only employers). Transfer duty (stamp duty) applies to property transfers with rates increasing with property value. Land tax applies to investment and commercial property (not principal residences) with progressive rates. Motor vehicle registration includes stamp duty. The Queensland Revenue Office administers state taxes. Tax lawyers advise on minimisation strategies and challenge assessments.

Fringe Benefits Tax (FBT)

FBT is a federal tax on benefits employers provide to employees or their associates, including cars, loans, entertainment, and living-away-from-home allowances. The FBT year runs April 1 to March 31. Employers pay 47% on the grossed-up value of benefits. Certain benefits are exempt or concessionally treated including minor benefits, work-related items, and salary packaging arrangements for charities and public hospitals. Queensland employers need advice on FBT compliance and minimisation strategies.