Income tax rates
Resident individuals
| Income | Rate |
| $0 – $18,200 | 0% |
| $18,201 – $37,000 | 19% over $18,200 |
| $37,001 – $80,000 | $3,572 + 32.5% over $37,000 |
| $80,001 – $180,000 | $17,547 + 37% over $80,000 |
| $180,001+ | $54,547 + 45% over $180,000 |
Note: Rates shown do not include the Medicare levy of 1.5%, payable where taxable income exceeds a certain level or the Medicare levy surcharge.
Non-resident individuals
| Income | Rate |
| $0 – $80,000 | 32.5% |
| $80,001 – $180,000 | $26,000 + 37% over $80,000 |
| $180,001+ | $63,000 + 45% over $180,000 |
Notes:
♦ A non-resident is generally only taxable on Australian sourced income.
♦ Non-residents do not pay the Medicare levy or the Medicare levy surcharge.
Minors (resident individuals)
Income tax on eligible taxable income is calculated as follows:
| Taxable income | Tax payable |
| $0 – $416 | Nil |
| $417 – $1,307 | Greater of: ♦ 66% of the excess over $416, and ♦ difference between tax on the whole of taxable income and tax on non-eligible taxable income |
| $1,308 + | 45% on the whole of the eligible taxable income |
Notes:
♦ Rates shown do not include the Medicare levy or the Medicare levy surcharge where applicable.
♦ Eligible taxable income is generally income derived by a minor that is not from their personal exertion. It is generally taxed
at the top marginal tax rate and is not eligible for the low income tax offset (LITO). Eligible taxable income may include
dividends, interest, rent, royalties, and managed fund and family trust distributions.
♦ Non-eligible taxable income (excepted income or where a minor is an excepted person, for example a disabled minor)
of the minor is taxed at general resident tax rates (or at non-resident rates where the minor is a prescribed non-resident).
This income is eligible for LITO. Excepted income may include income from work, compensation payments and inheritances.
♦ As a result of the 1 July 2011 changes in minors’ eligibility for LITO, the effective tax-free threshold of a minor is $416
(compared with $3,333 before the change).
Other tax rates
| Company, fund or benefits | Tax payable |
| Company | 30% |
| Insurance bonds (issued by life insurance companies | 30% * |
| Friendly society bonds | 30% * |
| Complying superannuation fund | 15% |
| Non-complying superannuation fund | 45% |
| Fringe benefits | 46.5% |
* Investor tax offset is 30% on assessable withdrawals.
Medicare levy thresholds
| Income category 2013-2014 |
Relevant taxable income threshold (no levy payable) |
Phase-in limit (full levy payable over this limit) |
|
| Entitled to seniors and pensioners tax offset (SAPTO) |
♦ Individual ♦ Married or sole parent For each dependent child or student, add |
$32,279 $46,000 $3,094 |
$37,975 $54,117 $3,538 |
| All other taxpayers | ♦ Individual ♦ Married or sole parent For each dependent child or student, add |
$20,542 $33,693 $3,094 |
$24,167 $38,521 $3,538 |
Notes:
♦ The full levy is 1.5% of taxable income; however, this varies for low income earners according to circumstances as shown above.
There are also some exempt groups of taxpayers.
♦ For individuals, a reduced levy is calculated at 10 cents for every dollar above the relevant taxable income threshold amount, but
at or below the phase-in limit shown in the table.
♦ Reduced levy calculations, based on family income (combined taxable income of taxpayer and spouse) and number of dependent
children, are more complex.
Medicare levy surcharge (MLS)
Individuals and families on incomes above the MLS thresholds are liable to pay the MLS for any period during 2014-2015 that they did not have private patient hospital cover. This is calculated as a percentage of taxable income. The MLS is in addition to the 1.5% Medicare levy.
The Medicare levy surcharge is income tested against the following income tier thresholds:
| Unchanged | Tier 1 | Tier 2 | Tier 3 | |
| Singles | $88,000 or less | $88,001 – $102,000 | $102,001 – $136,000 | $136,001 or more |
| Families | $176,000 or less | $176,001 – $204,000 | $204,001 – $272,000 | $272,001 or more |
| Rates | 0.0% | 1.0% | 1.25% | 1.5% |
Income* for private health insurance rebate and Medicare levy surcharge purposes is:
♦ taxable income
♦ reportable fringe benefits
♦ total net investment losses (financial investments and rental properties)
♦ reportable superannuation contributions
♦ exempt foreign employment income
♦ the amount on which family trust distribution tax has been paid.
Less
♦ Any taxed element of a superannuation lump sum (age 55 to 59) not exceeding the low rate cap ($180,000 for 2014-15).
* Based on tax return instructions for 2013.
Note: If there is more than one dependent child, these thresholds are increased by $1,500 for each child after the first. The single threshold is indexed to average weekly ordinary time earnings and increased in $1,000 increments (rounded down), and the couples threshold are double the relevant singles threshold.
For more tax rates you can go to www.ato.gov.au
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