2017 Income Tax Rates
Tax on individuals is charged at marginal rates. You can use the tax tables to determine how much you are taxed.
Resident tax rates 2016-17
|Taxable income||Tax on this income|
|$0 – $18,200||$0|
|$18,201 – $37,000||19c for each $1 over $18,200**|
|$37,001 – $87,000||$3,572 plus 32.5c for each $1 over $37,000|
|$87,001 – $180,000||$19,822 plus 37c for each $1 over $87,000|
|$180,001 and over||$54,232 plus 47*c for each $1 over $180,000|
Source: Adapted from information on the ATO website (www.ato.gov.au). Note that Medicare Levy of 2% is also payable by most taxpayers.
*Since 1 July 2014 and ending on 30 June 2017, a debt levy of 2% is imposed on taxpayers with a taxable income greater than $180,000, and it will be imposed only on income that exceeds $180,000, taking the top marginal tax rate to 47% (plus Medicare levy). Note that the debt levy is officially known as the Temporary Budget Repair Levy.
** You can earn up to $20,542 before any income tax is payable, when taking into account the Low Income Tax Offset (LITO).
A company is a distinct legal entity with its own income tax liability, and is required to lodge a Company income tax return. The company tax rate is generally 30%. Special rates apply to certain types of companies, or companies in certain industries.
Progressive changes to the company tax rate
|Income year||Turnover threshold||Company tax rate for entities under the threshold||Company tax rate for entities over the threshold|
|2018–19 to 2023–24||$50m||27.5%||30.0%|
Source: Adapted from information on the ATO website (www.ato.gov.au).
A partnership carrying on a business must complete a Partnership tax return to show all income earned and deductions claimed for the income year, and how the net income or loss was shared between the partners. The partnership itself is not a taxable entity. Rather, each partner includes a share of the partnership’s net income or loss in the partner’s taxable income.
Partnerships, where the only income is from joint investments (for example, jointly owned shares or rental properties), are not required to lodge a Partnership income tax return. Rather, each partner’s share of the joint income is declared in the partner’s own tax return.
Where a beneficiary (not under a legal disability) is presently entitled to a share of net income of a trust, the trustee is not taxable. Rather, each such beneficiary includes a share of the trust’s net income in the beneficiary’s taxable income. A trust cannot distribute a net loss to the beneficiaries, the loss is carried forward to offset against net income in later years.
Where a presently entitled beneficiary is under a legal disability (for example, under 18 years of age, a non-resident, or incapable of managing his/her own affairs), the trustee is taxable on the beneficiary’s share of the trust’s net income. The tax rates correspond to the tax rates that would otherwise be payable by the beneficiary.
Where no beneficiary is presently entitled to part of the trust’s net income, the trustee is taxable. The tax rates depend on the trust’s particular circumstances, for example income of deceased estates attracts a different tax rate depending on the stage of administration of the estate.
A superannuation fund is a distinct legal entity with its own income tax liability and is required to lodge an income tax return. Different income tax return forms are used by self-managed superannuation funds and other superannuation funds. The superannuation fund tax rate is generally 15%. Higher rates apply to net non-arm’s length income, and contributions by or on behalf of a member who has not quoted his/her tax file number to the trustee.
|Super fund investment earnings||15%|
|Non- Concessional contributions||Not taxed|
|Exceeding $300,000 in income and super contributions per year||30%|