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Tax

Taxation Rates & Thresholds

 

Individual Resident Tax rates (2017/2018) 1

 

Taxable Income

Marginal tax rate1

Tax payable

$0 – $18,200

Nil

Nil

$18,201 – $37,000

19%

Nil + 19% on each $1 over $18,200

$37,001 – $87,000

32.5%

$3,572 + 32.5% on each $1 over $37,000

$87,001 – $180,000

37%

$19,822 + 37% on each $1 over $87,000

$180,001 +

45%

$54,232 + 45% on each $1 over $180,000

The 2% Medicare levy may be in addition to this rate

 

Individual Non-Resident Tax rates

 

Taxable Income

Marginal tax rate² 

Tax payable

$0 – $87,000

32.5%

32.5% on every $1

$87,001 – $180,000

37%

$28,275 + 37% on each $1 over $87,000

$180,001 +

45%

$62,685 + 45% on each $1 over $180,000

Foreign residents are not required to pay the Medicare Levy.

 

Individuals Non-Resident Tax rates - Working Holiday Makers

Working holiday makers (that is, backpackers with either 417 or 462 via subclass) are taxed at 15% for the first $37,000 and then the same rates as residents above this level.

 

Taxable Income

Marginal tax rate Tax payable

$0 - $37,000

15% 15% on every $1

$37,001 - $87,000

32.5% $5,550 + 32.5% on each $1 over $37,000

$87,001 - $180,000

37% $28,275 + 37% on each $1 over $87,000

$180,001 +

45% $62,685 + 45% on each $1 over $180,000

 

Medicare Levy Thresholds (2016/2017)

 

 

No Levy Payable if Taxable Income is equal to or less than:

Reduced Levy on Income in Range:

Full Levy Payable (2.0%) if Taxable Income is greater than:

Single

$21,655

$21,656 - $27,068

$27,068

Families 3

$36,541

$36,541 – $45,676

$45,676

Seniors & Pensioners

-       Single

-       Couple/family

 

$34,244

$47,670

 

$34,244 – $42,805

$47,670 – $59,587

 

$42,805

$59,587

3 The lower threshold increases for each dependent child or student by $3,356.

 

Medicare Levy Surcharge (2017/2018)

The surcharge applies to singles and families with taxable income above the threshold who do not have adequate private health insurance.

 

 

Nil

1%

1.25%

1.5%

Single

Equal to or less than $90,000

$90,001 – $105,000

$105,001 – $140,000

More than $140,000

Family

Equal to or less than $180,000

$180,001 – $210,000

$210,001 – $280,000

More than $280,000

For families, the income thresholds increase by $1,500 for each MLS dependent child after the first.

 

Other Tax Rates (2017/2018)

 

 

Tax Rate

Standard companies

30%

Small business companies (with aggregated turnover of less than $25 million)

27.5%

Complying Superannuation Fund

15%

Non-Complying Superannuation Fund

47%

Insurance Bonds

30%

Friendly Society Bonds

30%

 

Tax Offsets

 

Seniors and Pensioners Tax Offset (2017/18)

 

 

Offset

Shaded Out Threshold

Cut Out Threshold

Single

$2,230

$32,279

$50,119

Couple (each)

$1,602

$28,974

$41,790

Couple separated due to illness (each)

$2,040

$31,279

$47,599

 

The offset reduces by 12.5 cents per $1 of rebate income above the shade-out threshold. Rebate income is defined as Taxable Income plus adjusted fringe benefits plus reportable superannuation contributions plus net investment losses.

 

Low Income Tax Offset (2017/18)

 

Offset

Shaded Out Threshold

Cut Out Threshold

$445

$37,000

$66,667

 

The offset reduces by 1.5 cents per $1 of taxable income over $37,000.

 

Spouse Contribution Tax Offset

 

Offset

Shaded Out Threshold

Cut Out Threshold

$540

$37,000

$40,000

 

The offset is 18% of the lesser of:

  1. $3,000 reduced by $1 per $1 of spouse’s income5 above $37,000,
  2. Or the total contribution for the spouse.

 

Assessable income plus reportable fringe benefits plus reportable employer superannuation contributions.