Personal Income Tax
26 Nov 12
1. Income tax rates:
Effective from 1 July 2010, the 30% threshold will be raised to $37,001 and taxpayers in the range of $80,001 to $180,000 wil pay 37% tax rate.
Brackets from 1 July 2010 as follows: (not including Medicare levy)
| RESIDENT |
NON-RESIDENT
|
Taxable Income $
|
Tax Payable $
|
Taxable Income $
|
Tax Payable $
|
0 – 6,000
|
Nil
|
0 – 37,000
|
29%
|
6,001 – 37,000
|
15% |
37,001 -80,000
|
30%
|
37,001 -80,000
|
30%
|
80,001 – 180,000
|
37%
|
80,001 – 180,000
|
37%
|
180,001 above
|
45%
|
180,001 above
|
45% |
|
|
The Low Income Tax Offset will increase from $1,350.00 to $1,500 for 2010/2011, phasing out after $30,000 by 0.04 cents in the dollar to a maximum of $67,500
2. - Medicare levy Surcharge (MLS) (for those without private health insurance) from 1 July 2010
| Tier |
Singles
|
Couples
|
|
Income Threshold
|
MLS Rate |
Income Threshold
|
MLS Rate
|
Tier 0
|
< 75,000 |
0% |
< 150,000
|
0%
|
Tier 1
|
75,001 – 90,000
|
1%
|
150,001 – 180,000
|
1%
|
Tier 2
|
90,001 – 120,000
|
1.25%
|
180,001 – 240,000
|
1.25%
|
Tier 3
|
> 120,001 |
1.5%
|
> 240,001
|
1.5%
|
Private Health Insurance Rebate from 1 July 2010
Tier
|
Under 65 years
|
65 to 69 years
|
70 years or more
|
Tier 0
|
30%
|
35%
|
40%
|
Tier 1
|
20% |
25%
|
30%
|
Tier 2
|
10%
|
15%
|
20%
|
Tier 3
|
0% |
0%
|
0%
|
3. - Individuals – Foreign sourced income
The current tax exemption for foreign employment income where an Australian resident individual works overseas for greater than 90 days is to be abolished.
Instead, a foreign tax offset for foreign tax paid will be available.
The change is designed to collect additional tax in Australia where the foreign tax amount is less, and to stop access to Government benefits through having a lower taxable income.
The new rules will not apply to aid workers and defense personnel, who will continue to enjoy the exemption.
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