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Tax

Taxation Rates & Thresholds

 

Individual Resident Tax rates (2016/2017) 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 +

47%2

$54,232 + 47.0%2 on each $1 over $180,000

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

2 Includes the Temporary Budget Repair Levy payable to 30 June 2017

 

Individual Non-Resident Tax rates

 

Taxable Income

Marginal tax rate

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 +

47%2

$62,685 + 47%2 on each $1 over $180,000

Includes the Temporary Budget Repair Levy payable to 30 June 2017

 

Medicare Levy Thresholds (2015/2016)

 

 

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

$21,335

$21,335 – $26,668

$26,668

Families 3

$36,000

$36,000 – $45,001

$45,001

Seniors & Pensioners

-       Single

-       Couple/family

 

$33,738

$46,966

 

$33,738 – $42,172

$46,966 – $58,707

 

$42,172

$58,707

3 The lower threshold increases for each dependent child or student by $4,132.

 

Medicare Levy Surcharge (2016/2017)

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 (2016/2017)

 

 

Tax Rate

Standard companies

30%

Small business companies (with aggregated turnover of less than $2 million)

28.5%*

Complying Superannuation Fund

15%

Non-Complying Superannuation Fund

47%

Insurance Bonds

30%

Friendly Society Bonds

30%

* Note: The 2016 Federal Budget included a proposal to reduce the company tax rate from 28.5% to 25% over 10 years, commencing with a reduction to 27.5% from 1 July 2016. This is not yet law.

 

Tax Offsets

 

Seniors and Pensioners Tax Offset (2016/17)

 

 

Offset

Shade 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

 

Offset

Shade 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

Shade Out Threshold

Cut Out Threshold

$540

$10,800

$13,800

 

The offset is 18% of the lesser of:

  1. $3,000 reduced by $1 per $1 of spouse’s income5 above $10,800,
  2. Or the total contribution for the spouse.

 

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

Assessable income that is mainly reward for personal effort or skills plus reportable fringe benefits and reportable employer superannuation contributions less any related deductions.