Is income tax the same in Australia as it is in the UK? (Chris, Twickenham)

Answer

Income tax in the UK and in Australia started from substantially the same base way back in the dim and distant past. However in the modern day there are many differences, including the rates of income tax, and the ability to claim tax deductions for amounts paid by taxpayers - claiming tax deductions is far more common in Australia than in the UK, and allows individuals to reduce their tax liability. For example, many taxpayers in Australia claim tax deductions for work related expenses in a manner that is simply not possible in the UK.
In addition, while most individual taxpayers in the UK do not complete a tax return each year, almost all Australians are required to complete an annual return of their assessable income.
However, there are some similarities including the separate taxation of spouses, self-assessment - and interest on tax that is paid late!

ABOUT THE EXPERT

Alan Collett is a qualified Chartered Accountant in UK and Australia. With Jane Cooper (also tax qualified in both countries), he owns and operates Go Matilda Accounting and Tax, which provides tax advice and ongoing tax compliance services such as tax return preparation for those who are moving to Australia. Go Matilda has offices in the UK and in Australia, and can be contacted in the UK on 023 80 30 25 24, and on the Internet at www.gmtax.com.au. Jane also operates a pension transfer consultancy business in Australia.