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Individual income tax rates

Residents

These rates apply to individuals who are Australian residents for tax purposes.

Source

Tax rates 2016–17

The following rates for 2016–17 apply from 1 July 2016.

These rates do not include:

  • The medicare levy of 2%
  • The temporary Budget Repair Levy; this levy is payable at a rate of 2% for taxable incomes over $180,000
Taxable income Tax on this income
0 – $18,200 $nil
$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 45c for each $1 over $180,000

Tax rates 2017–18

The following rates for 2017–18 apply from 1 July 2017.

The rates do not include:

  • The Medicare levy of 2%
  • The temporary budget repair levy ceased applying from 1 July 2017
Taxable income Tax on this income
0 – $18,200 Nil
$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 45c for each $1 over $180,000

Small Business Company Tax Rate

From the 2016–17 income year, the small business company tax rate has been reduced to 27.5%. This lower rate now applies to small businesses with a turnover (that is, aggregated turnover) less than $10 million that are:

  • companies
  • corporate unit trusts
  • public trading trusts

The company tax rate will remain at 30% for all other companies that are not small business entities.

For the 2015–16 income year, the small business company tax rate was 28.5% for companies with a turnover less than $2 million and 30% for all other companies. Previous to this, it was 30% for all companies.

Source

Future Year Company Tax Rates

The reduced company tax rate will progressively apply to companies with a turnover less than $50 million by the 2018–19 income year. The rate will then reduce for these companies to 25% by the 2026–27 income year.

Income year Turnover threshold Company tax rate for entities under the threshold Company tax rate for entities over the threshold
2015–16 $2m 28.5% 30.0%
2016–17 $10m 27.5% 30.0%
2017–18 $25m 27.5% 30.0%
2018–19 to 2023–24 $50m 27.5% 30.0%
2024–25 $50m 27.0% 30.0%
2025–26 $50m 26.0% 30.0%
2026–27 $50m 25.0% 30.0%

Superannuation contribution levels

Concessional contributions cap

Concessional contributions include:

  • employer contributions (including contributions made under a salary sacrifice arrangement)
  • personal contributions claimed as a tax deduction

If you have more than one fund, all concessional contributions made to all of your funds are added together and counted towards the concessional contributions cap.

Source

Income year Your age Your concessional contribution cap Treatment of excess concessional contributions
2017–18 All ages $25,000 Included as taxable income, taxed at marginal tax rate plus an excess concessional contributions charge
2016–17 <49 on 30 June 2016 $30,000 Included as taxable income, taxed at marginal tax rate plus an excess concessional contributions charge
2016–17 49+ on 30 June 2016 $35,000 Included as taxable income, taxed at marginal tax rate plus an excess concessional contributions charge

Non-concessional contributions cap

Non-concessional contributions include personal contributions for which you do not claim an income tax deduction.

If you have more than one fund, all non-concessional contributions made to all of your funds are added together and counted towards the non-concessional contributions cap.

Income year Amount of cap
2017–18 $100,000 *conditions apply
2016–17 $180,000

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