Value Added Taxation Services

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Tax Rates

Australian Residents Tax Rates

The following rates are for the period  1 July 2016 to 30 June 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

The above rates do not include the:

  • Medicare levy of 2%
  • Temporary Budget Repair Levy; this levy is payable at a rate of 2% for taxable incomes over $180,000.

The following rates are for the period  1 July 2015 to 30 June 2016

Taxable income Tax on this income
0 – $18,200 Nil
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54,547 plus 45c for each $1 over $180,000

The above rates do not include the:

  • Medicare levy of 2%
  • Temporary budget repair levy; this levy is payable at a rate of 2% for taxable incomes over $180,000.

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Tax News

In the 2016–17 Budget, it was announced by the government that it will progressively reduce the corporate tax rate progressively from 30% to 25%

Bear in mind, that currently, there is a small business corporate tax rate which is less than the 30% tax rate.

  • Companies with a total annual turnover of  below $2 million are taxed at 28.5%
  • Companies with a total annual turnover of $2 million or higher are generally taxed at 30%

It was also announced that there will be a  reduction in the small business tax rate from 28.5%t to 27.5% for the 2016/17 income year. The turnover threshold to qualify for the lower rate will start at $10 million and progressively rise until the 27.5% rate applies to all corporate tax entities subject to the general company tax rate in the 2023/24 income year.

The corporate tax rate will further be reduced to 27% for the 2024/25 income tax year and by one percentage point in each subsequent year until it reaches 25% for the 2026/27 income year.

 

 

Disclaimer: This post has been written for general interest only.  No responsibility for loss occasioned to any person acting or refraining from action as a result of the information outlined in this post and all posts in this website is accepted by the authors. In all cases, appropriate advice should be sought from your accountant before making any decision.