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Fiscal Representative in Australia

Fiscal Representative in Australia

A fiscal representative in Australia is also referred to as a tax representative. The purpose of a tax representative is to be the liaison person between a company and the tax authorities in the country where the respective legal entity develops taxable activities.

The necessity to appoint a fiscal representative in Australia appears for companies registered overseas, but which develop taxable activities on the Australian territory, charged with the local value added tax, known as goods and services tax (GST).

Companies that need complete this procedure can find out more on their obligations from our team of consultants in company formation in Australia, who can also act as a fiscal representative.

What are the advantages of fiscal representation in Australia?

First, it must be noted that fiscal representation is a mandatory requirement, not just a procedure that can ease specific tax-related formalities, but it is worth knowing that having a fiscal representative in Australia provides a set of benefits for the foreign company.

The main advantage a foreign company can have is that it can develop economic activities in Australia, without the need of having a permanent establishment here. A permanent establishment is a type of office or another business settlement (such as a factory) a business can obtain through the process of company incorporation in Australia.

Besides this, the foreign company can easily import goods into Australia following the same import formalities that Australian businesses follow, and they can easily sell and buy goods on the Australian territory.

What are the GST registration obligations in Australia?

Regardless if you opt to open a company in Australia or you have an overseas business and want to sell on the Australian market, you will need to comply with certain GST obligations. Foreign companies that are not registered in Australia and do not have a permanent establishment here are known as non-resident entities.

The manner in which they need to pay taxes in Australia is similar with the one of Australian businesses, the difference being that the first will pay taxes only for the income attributable to the commercial activities carried out in Australia. With regards to GST registration, the following apply:

  • GST in Australia is charged at a rate of 10%;
  • it is mandatory to register if the company’s turnover in connection to the sales made in Australia has a value of minimum $75,000;
  • for non-resident entities that operate as non-profit organizations, the registration is mandatory when the threshold is of minimum $150,000;
  • companies that have a turnover below $75,000 or $150,000 can opt for voluntary registration and once the company is registered, the registration must be maintained for a period of minimum 12 months.

For GST registration, you can always address a fiscal representative in Australia, who can also handle any other tax formalities.

What are the company’s responsibilities once registered for Australian GST?

The company’s tax-related obligations will be completed by the person appointed as a fiscal representative in Australia. One of the main obligations, once registered, is to include the GST (10%) in the selling price of your products/services sold in Australia.

According to the Australian Taxation Office (ATO), GST payers must also complete a Business Activity Statement (BAS) every month. Companies also have the obligation to submit the BAS on a quarterly and yearly basis. Our specialists in company incorporation in Australia can help non-resident companies prepare this document.

The document can be lodged online, but companies also have the possibility to submit the tax report via mail. Provided that the company did not have any GST-related activity in a month, it is necessary to report a “nil” BAS, online or by phone.

We invite you to find out more details about this procedure from our fiscal representative in Australia. Additionally, we invite you to contact our team for professional corporate services, including for the purchase of a shelf company in Australia.