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Based on the information you provided, the ACT Solar Systems Ltd as manufacturer for solar panels qualifies for the feed-in tariff program of the Australian government. Also called the renewable energy payments,…
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Section 4-1of the Income Tax legislation states that income tax is paid by each individual and company, and by some other entities. Income tax is paid for each year ending on 30 June, and it is called the financial year.
(b) An accounting period that is not the same as the financial year, any such accounting period or, for a company, each previous accounting period is an income year. The Commissioner allow an adoption of an accounting period ending on a day other than 30 June as provided in Sction 18 of the Income Tax Assessment Act 1936. 1
Energy Matters reported that as of May 2010, there is no specific legislation dealing with incomes generated from feed-in tariff.2 However, the common law may be used. The assessable income tax as provided for by law states that:
This is applied to all entities, whether from business, property, hobby, profit-making scheme, or as shareholder for a corporation. Even compensation for loss of salary, pain and suffering are considered incomes.
Assessable income includes ordinary incomes derived from all sources including outside of Australian jurisdiction as long as one is an Australian resident. For non-Australian residents, assessable incomes include only those gained from all Australian sources for the covered financial year.
There are also incomes that are called statutory incomes and considered assessable incomes. For ACT Solar Systems Ltd., a flat rate of 30% will be filed for payment as income tax. All statutory incomes derived from Australian sources are assessable incomes.3 Australian residence is an important distinction because only Australian residents are provided tax-free threshold from $6,000 up to $11,000 income rebate while non-residents have a flat rate for gross income of 29%. There is also no medical levy for non-residents.
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