Tax Rates

This handy easy-to-use guide will help you to navigate the complex and changing tax system in Australia.

It’s an important tool for someone needing a quick reference guide for common tax questions, You don’t have to navigate tax office website to find the information that you looking for.

it ’s just another way that we can help you get where you want to be.
INDIVIDUAL TAX RATES
Residents* – year ending 30 June 2018
Taxable income ($) Tax** ($) % on excess
18,200 Nil 19
37,000 3,572 32.5
87,000 19,822 37
180,000 54,232 45
For the year ending 30 June 2018, a Medicare levy of 2% of taxable income applies to most residents. An additional Medicare levy surcharge of up to 1.5% (see below for rates and thresholds) applies to certain higher income taxpayers not covered by health insurance for private patient hospital cover.
Non-residents* – year ending 30 June 2018
Taxable income ($) Tax** ($) % on excess
0 Nil 32.5
87,000 28,275 37
180,000 62,685 45
* Special rates apply to unearned income of children aged under 18 years at year end where that income is more than $416. ** These amounts do not include the Medicare levy and surcharge, or any tax offsets that may be available.
Medicare levy surcharge (singles) – year ending 30 June 2018
Income for surcharge purposes^ ($) Surcharge rate (%)
90,000 or less 0.00
90,001 – 105,000 1.00
105,001 – 140,000 1.25
More than 140,000 1.50
Medicare levy surcharge (families) – year ending 30 June 2018
Income for surcharge purposes^# ($) Surcharge rate (%)
180,000 or less 0.00
180,001 – 210,000 1.00
210,001 – 280,000 1.25
More than 280,000 1.50
^ Income for surcharge purposes includes, among other things, taxable income, reportable fringe benefits amounts, reportable superannuation contributions and net investment losses. # The family income thresholds are increased by $1,500 for each dependant child after the first child.

Private health insurance rebate

For premiums paid between 1 April 2017 and 31 March 2018*
Singles
Income for surcharge purposes^ ($) Rebate (%)
Less than 65 years of age Age 65 to 69 years Age 70 years and over
90,000 or less 25.934 30.256 34.579
90,001 – 105,000 17.289 21.612 25.934
105,001 – 140,000 8.644 12.966 17.289
More than 140,000 0 0 0
For premiums paid between 1 April 2017 and 31 March 2018*
Families
Income for surcharge purposes#^($) Rebate (%)
Less than 65 years of age Age 65 to 69 years Age 70 years and over
180,000 or less 25.934 30.256 34.579
180,001 – 210,000 17.289 21.612 25.934
210,001 – 280,000 8.644 12.966 17.289
More than 280,000 0 0 0
* Rebate percentages are adjusted annually on 1 April. ^ Income for surcharge purposes is measured for the financial year ending 30 June, and includes, among other things, taxable income, reportable fringe benefits amounts, reportable superannuation contributions and net investment losses. # The family income thresholds are increased by $1,500 for each dependant child after the first child.
COMPANY TAX RATES
  • Base rate* entities - 27.5%
  • All other companies - 30%
* A base rate entity for the 2017-18 income year is one which carries on a business and has aggregated turnover of less than $25 million.

Private company loans (Division 7A)

  • Benchmark interest rate for 2017-18 — 5.30%
CAPITAL GAIN TAX (CGT)

Net capital gains in respect of CGT assets acquired after 19 September 1985 are included in assessable income and taxed at marginal rates.

A CGT discount factor automatically applies to individuals and trustees (of 50%*) and to complying superannuation funds (of 33.33%) in respect of CGT assets acquired after 11.45am Australian Eastern Standard Time (AEST) on 21 September 1999 and held for at least 12 months before the time of the CGT event. The CGT discount is not available for foreign resident or temporary resident individuals in respect of gains accrued after 7.30pm (AEST) on 8 May 2012. The CGT discount remains available for capital gains accrued prior to this time where the relevant individual chooses to obtain a market valuation of assets as at 8 May 2012.

* The Government has announced that, from 1 January 2018 the CGT discount will be increased to 60% for resident individuals investing in affordable housing. The affordable housing must be managed through a registered community housing provider and held for a minimum period of three years.  As at 1 July 2017, this measure was not enacted.

FRINGE BENEFIT TAX RATES
  • FBT rate for year ending 31 March 2018 – 47%
Type of aggregate fringe benefit amount FBT gross-up factor
Year ending
31 March 2018
Type 1 – entitlement to GST input tax credits 2.0802
Type 2 – no entitlement to GST input tax credits 1.8868
Key FBT figures Year ending
31 March 2018
Benchmark interest rate for loan benefits 5.25%
Car parking benefit threshold $8.66
Record keeping exemption threshold $8,393
Car fringe benefits statutory formula 0.2*

* For contracts entered into from 7.30pm AEST 10 May 2011. Different rates may apply for contracts entered into before this date.

LAND TAX RATES
MANAGED INVESTMENT TRUST (MITs)
  • MIT withholding tax rate for fund payments (resident in an information exchange country*) – 15%^
  • MIT withholding tax rate for fund payments (not a resident in an information exchange country*) – 30%
  • “Clean building” MIT withholding tax rate for fund payments (resident in an information exchange country*) – 10%
  • Tax rate for non-arm’s length income derived by MIT – 30%

* An information exchange country is a country with which Australia has an effective exchange of information agreement and is prescribed by Regulation 44E of the Taxation Administration Regulations 1976.

^ The Government has announced new measures to encourage investment in affordable housing by MITs. The new arrangements, to apply from income years starting on or after 1 July 2017, may result in a 30% rate applying to certain fund payments made to a resident in an information exchange country where certain conditions are not met. As at 1 July 2017, these measures were not enacted.

PAYROLL TAX RATES
State/Territory Rate (%) Annual Threshold ($)1
NSW 5.45 750,000
ACT 6.85 2,000,000
VIC 4.85 / 3.65 2 625,000
QLD 4.75 1,100,000 3
TAS 6.1 1,250,000
SA 4.95 4 600,000
WA 5.5 850,000 5
NT 5.5 1,500,000 6

1 The above thresholds may be reduced where the company is part of a group and/or pays interstate wages.

2 The lower 3.65% rate applies to business where at least 85% of their payroll goes to regional employees.

3 This threshold reduces by $1 for every $4 of Australian wages over $1,100,000. Businesses with annual taxable wages of $5.5 million or more will be subject to payroll tax of 4.75% on their entire taxable wages.

4 A small business rate of 2.5% is proposed to apply to firms with payrolls between $600, 000 and $1 million, then phase up to the general rate of 4.95% for payrolls above $1.5 million.

5 This threshold reduces gradually for employers with annual taxable wages between $850,000 and $7.5 million. Businesses with annual taxable wages of $7.5 million or more will be subject to payroll tax at 5.5% on their entire taxable wages.

6 This threshold reduces by $1 for every $4 of wages over $1,500,000. Businesses with annual taxable wages of $7.5 million or more will be subject to payroll tax of 5.5% on their entire taxable wages.

The facts and figures outlined in this tax summary are current as at 1 July 2017.

RESEARCH & DEVELOPMENT TAX INCENTIVE (R&D)

Under the Research and Development (R&D) tax incentive, entities may be eligible for a tax offset for expenditure on eligible R&D activities and for the decline in value of depreciating assets used for eligible R&D activities.

  • Refundable* R&D tax offset – 43.5%
  • Non-refundable R&D tax offset – 38.5%

A $100 million cap on the amount of R&D expenditure that companies can claim as a tax offset at the above rates applies. For expenditure over $100 million, companies are able to claim a tax offset at the company tax rate.

* Generally only available to eligible entities with an aggregated turnover of less than $20 million.

SUPERANNUATION
  • Complying superannuation fund tax rate (excluding non-arm's length component) — 15%
  • Complying superannuation fund tax rate (non-arm's length component) — 45%
  • Non-complying superannuation fund tax rate — 45%
  • Additional tax payable on concessional contributions of very high income earners* — 15%
  • Transfer balance cap (cap on the amount that can be transferred to the tax-free earnings retirement phase of superannuation) — $1,600,000
  • Superannuation contribution caps – year ending 30 June 2018
    Type of superannuation contribution Contributions cap**
    Concessional (deductible) $25,000
    Non-concessional (non-deductible) $100,000^

    * Applies to individuals whose combined income for surcharge purposes (excluding reportable superannuation contributions) and concessionally taxed superannuation contributions exceed $250,000 for the income year.

    ** Amounts contributed in excess of the applicable cap may be subject to additional tax or included in the individual’s assessable income and taxed at their marginal tax rate. Individuals can choose to have up to 85 per cent of their excess concessional contributions for a financial year released from superannuation. Additionally, individuals can choose to withdraw excess non-concessional contributions plus associated earnings from superannuation.

    ^ Individuals under 65 years of age can make non-concessional contributions of up to $300,000 over a three-year period (known as the 'bringing forward rule'). Due to the reduction in the non-concessional contributions cap from $180,000 to $100,000 with effect from 1 July 2017, some individuals may have a different cap if the bringing forward rule was triggered in the 2015-16 or 2016-17 income years.

    Superannuation guarantee charge (SGC)

    SGC is payable by employers if during 2017-18 they fail, in relation to each employee, to contribute 9.5% of the employee's ordinary time earnings (base capped at $52,760 per quarter).