MSJ Setting up business in Australia - Corporate taxation Corporate taxation Broadly, Australian income tax is levied annually on the 'taxable income' of a taxpayer.
Taxable income is determined on the basis of 'assessable income' less 'allowable deductions'.
The normal accounting period for Australian income tax purposes is a 12 month period ending 30 June of each year. The government proposes major changes to many of these areas in response to the 1999 recommendations of the Ralph Review of Business Taxation. Some changes have already been introduced. Further changes are to be introduced over a period of time. Probably the most relevant of the proposed changes is to the thin capitalisation regime.