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Tax

Taxation Rates & Thresholds

 

Individual Resident Tax rates (2023/2024) 1

 

Taxable Income

Marginal tax rate1

Tax payable

$0 – $18,200

Nil

Nil

$18,201 – $45,000

19%

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

$45,001 – $120,000

32.5%

$5,092 + 32.5% on each $1 over $45,000

$120,001 – $180,000

37%

$29,467 + 37% on each $1 over $120,000

$180,001 +

45%

$51,667 + 45% on each $1 over $180,000

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

 

Individual Non-Resident Tax rates (2023/24)

 

Taxable Income

Marginal tax rate² 

Tax payable

$0 – $120,000

32.5%

32.5% on every $1

$120,001 – $180,000

37%

$39,000 + 37% on each $1 over $120,000

$180,001 +

45%

$61,200 + 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 (2023/24)

Working holiday makers (that is, individuals with either 417 or 462 via subclass) are taxed at 15% for the first $45,000 and then the same rates as residents above this level.

 

Taxable Income

Marginal tax rate Tax payable

$0 - $45,000

15% 15% on every $1

$45,001 - $120,000

32.5% $6,750 + 32.5% on each $1 over $45,000

$120,001 - $180,000

37% $31,125 + 37% on each $1 over $120,000

$180,001 +

45% $53,325 + 45% on each $1 over $180,000

 

Medicare Levy Thresholds (2022/23)

 

 

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

$24,276

$24,276 - $30,345

$30,346

Families 3

$40,939

$40,939 – $51,173

$51,174

Seniors & Pensioners

-       Single

-       Couple/family

 

$38,365

$53,406

 

$38,365 – $47,956

$53,406 – $66,757

 

$47,957

$66,758

3 The lower threshold increases for each dependent child or student by $3,760.

 

Medicare Levy Surcharge (2023/24)

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 $93,000

$93,001 – $108,000

$108,001 – $144,000

More than $144,000

Family

Equal to or less than $186,000

$186,001 – $216,000

$216,001 – $288,000

More than $288,000

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

 

Other Tax Rates (2022/23)

 

 

Tax Rate

Standard companies

30%

Small business companies (with aggregated turnover of less than $50 million)

25%

Complying Superannuation Fund

15%

Non-Complying Superannuation Fund

45%

Insurance Bonds

30%

Friendly Society Bonds

30%

 

Tax Offsets

Seniors and Pensioners Tax Offset (2022/23)

 

 

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 (2022/23)

 

Offset

Shaded Out Threshold

Cut Out Threshold

$700

$37,500

$66,667

The offset reduces by 5 cents per $1 of taxable income between $37,500 and $45,000, and a further 1.5 cents per $1 of taxable income between $45,000 and $66,667.

 

Low and Middle Income Tax Offset (2021/22)

The low and middle income tax offset (LMITO) was increased by $420 for the 2021–22 financial year. The LMITO ended on 30 June 2022 and is not available for the 2022/23 income year and later income years.

 

Taxable Income

Offset

Up to $37,000

$675

$37,001-$48,000

$675 plus 7.5 cents per dollar over $37,000, up to a maximum of $1,500

$48,001-$90,000

$1,500

$90,001-$126,000

$1,500 less 3 cents per dollar over $90,000

 

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.

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