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Tax rates

Tax Calculators


Medicare levy 1.5% .
Taxable income Rate of Medicare Levy
$1 - $16,284 0%
$16,285 to $17,603 20% of the difference between taxable income and $16,284
$17,604 and over 1.5% of taxable income

Medicare Levy Surcharge (MLS) over $50,000 - 1% of TI

Tax offsets reduce the tax payable.

If your tax offsets are greater than your tax due, you do not get a refund of the excess amount - with three exceptions.

The three refundable tax offsets are:
  • the private health insurance rebate - 30% of premiums

  • the franking tax offset - equal to franking credit (tax paid on dividend)

  • the baby bonus (first child tax offset). Min $500 - Max $2500.

Other tax offsets
  • mature age worker tax offset (55 and over) - $500

  • entrepreneurs tax offset - 25% of the income tax liability

  • low income rebate - Maximum $600 2008 $750

  • senior australians tax offset - no tax payable on TI $24,867

Company Tax - 30%

Companies generally including corporate limited partnerships, strata title bodies corporate, trustees of corporate unit trusts and public trading trusts

Trusts Tax
  • When a beneficiary is presently entitled but is under a legal disability the trustee is assessed on the share of NTI income on behalf of the beneficiary at ordinary rates of tax

  • When no beneficiary is presently entitled the trustee is assessed under s.99A ITAA36 at flat rate of 45% for 2006/07.
Income of Excepted Minors

Taxed at Div 6AA Penalty rates

Taxation

Calculation of taxable income (for individuals)

Assessable income equals Gross income Less Exempt income

Taxable Income equals Assessable Income less Deductions

Net Tax Payable equals Tax on Taxable Income less Tax offsets

Refund due/Balance Payable equals Net Tax Payable plus Medicare Levy and Surcharge less Tax credits and refundable tax offsets


Residents

These rates apply to individuals who:
  • are residents of Australia for tax purposes for the whole financial year (see Residency - overview for more information), and
  • did not leave full-time education for the first time during the financial year.

Tax rates 2006-07

Taxable income Tax Rate
$0 - $6,000 Nil
$6,001 - $25,000 15c for each $1 over $6,000
$25,001 - $75,000 $2,850 plus 30c for each $1 over $25,000
$75,001 - $150,000 $17,850 plus 40c for each $1 over $75,000
$150,001 and over $47,850 plus 45c for each $1 over $150,000


Tax rates 2007-08

Taxable income Tax Rate
$1 - $6,000 Nil
$6,001 - $30,000 15c for each $1 over $6,000
$30,001 - $75,000 $3,600 plus 30c for each $1 over $30,000
$75,001 - $150,000 $17,100 plus 40c for each $1 over $75,000
$150,001 and over $47,100 plus 45c for each $1 over $150,000


Tax rates 2008-09

Taxable income Tax Rate
$1 - $6,000 Nil
$6,001 - $30,000 15c for each $1 over $6,000
$30,001 - $80,000 $3,600 plus 30c for each $1 over $30,000
$80,001 - $180,000 $18,600 plus 40c for each $1 over $80,000
$180,001 and over $58,600 plus 45c for each $1 over $180,000


Division 6AA tax rates
Taxable income Tax Rate
0 – 416 Nil
417 – 1,445 66% on excess over $416
1,446 + 45% flat on whole of taxable income