Taxation rates and figures 2014 - 2015 27 Nov 2015

Blog / Financial Planning

 

Income tax rates

Resident individuals

Income Rate
$0 – $18,200 0%
$18,201 – $37,000 19% over $18,200
$37,001 – $80,000 $3,572 + 32.5% over $37,000
$80,001 – $180,000 $17,547 + 37% over $80,000
$180,001+ $54,547 + 45% over $180,000

Note:  Rates shown do not include the Medicare levy of 1.5%, payable where taxable income exceeds a certain level or the Medicare levy surcharge.

Non-resident individuals

Income Rate
$0 – $80,000 32.5%
$80,001 – $180,000 $26,000 + 37% over $80,000
$180,001+  $63,000 + 45% over $180,000

Notes:
♦ A non-resident is generally only taxable on Australian sourced income.
♦ Non-residents do not pay the Medicare levy or the Medicare levy surcharge.

Minors (resident individuals)

Income tax on eligible taxable income is calculated as follows:

Taxable income Tax payable
$0 – $416 Nil
$417 – $1,307 Greater of:
♦  66% of the excess over $416, and
♦ difference between tax on the whole of taxable income
   and tax on non-eligible taxable income
$1,308 + 45% on the whole of the eligible taxable income


Notes:

♦  Rates shown do not include the Medicare levy or the Medicare levy surcharge where applicable.
♦  Eligible taxable income is generally income derived by a minor that is not from their personal exertion. It is generally taxed
    at the top marginal tax rate and is not eligible for the low income tax offset (LITO). Eligible taxable income may include
    dividends, interest, rent, royalties, and managed fund and family trust distributions.
♦  Non-eligible taxable income (excepted income or where a minor is an excepted person, for example a disabled minor)
    of the minor is taxed at general resident tax rates (or at non-resident rates where the minor is a prescribed non-resident). 
    This income is eligible for LITO. Excepted income may include income from work, compensation payments and inheritances.
♦  As a result of the 1 July 2011 changes in minors’ eligibility for LITO, the effective tax-free threshold of a minor is $416
    (compared with $3,333 before the change).

Other tax rates

Company, fund or benefits Tax payable
Company 30%
Insurance bonds (issued by life insurance companies 30% *
Friendly society bonds 30% *
Complying superannuation fund 15%
Non-complying superannuation fund 45%
Fringe benefits 46.5%

*  Investor tax offset is 30% on assessable withdrawals.

Medicare levy thresholds

  Income category
2013-2014
Relevant taxable income
threshold (no levy payable)
Phase-in limit (full
levy payable over this limit)
Entitled to seniors and
pensioners tax offset (SAPTO)
♦ Individual
♦ Married or sole parent
For each dependent child or
student, add
$32,279
$46,000

$3,094
$37,975
$54,117

$3,538
All other taxpayers ♦ Individual
♦ Married or sole parent
For each dependent child or
student, add
$20,542
$33,693

$3,094
$24,167
$38,521

$3,538

Notes:

♦  The full levy is 1.5% of taxable income; however, this varies for low income earners according to circumstances as shown above.
    There are also some exempt groups of taxpayers.
♦  For individuals, a reduced levy is calculated at 10 cents for every dollar above the relevant taxable income threshold amount, but
   
at or below the phase-in limit shown in the table.
♦  Reduced levy calculations, based on family income (combined taxable income of taxpayer and spouse) and number of dependent
    children, are more complex.


Medicare levy surcharge (MLS)

Individuals and families on incomes above the MLS thresholds are liable to pay the MLS for any period during 2014-2015 that they did not have private patient hospital cover.  This is calculated as a percentage of taxable income.  The MLS is in addition to the 1.5% Medicare levy.

The Medicare levy surcharge is income tested against the following income tier thresholds:

  Unchanged Tier 1 Tier 2 Tier 3
Singles $88,000 or less $88,001 - $102,000 $102,001 - $136,000 $136,001 or more
Families $176,000 or less $176,001 - $204,000 $204,001 - $272,000 $272,001 or more
Rates 0.0% 1.0% 1.25% 1.5%

  

Income* for private health insurance rebate and Medicare levy surcharge purposes is:

♦ taxable income
♦ reportable fringe benefits
♦ total net investment losses (financial investments and rental properties)
♦ reportable superannuation contributions
♦ exempt foreign employment income
♦ the amount on which family trust distribution tax has been paid.

Less

♦ Any taxed element of a superannuation lump sum (age 55 to 59) not exceeding the low rate cap ($180,000 for 2014-15).

*  Based on tax return instructions for 2013.

Note:  If there is more than one dependent child, these thresholds are increased by $1,500 for each child after the first.  The single threshold is indexed to average weekly ordinary time earnings and increased in $1,000 increments (rounded down), and the couples threshold are double the relevant singles threshold.


For more tax rates you can go to www.ato.gov.au

 

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Disclaimer and Warning
The information above is of a general nature only.  It should not be used as a source to make financial decisions.
It's also important to note that the legislation and figures related to this topic tend to change regularly and
therefore the information above may not reflect the current status.
We recommend that if you are looking for advice on this matter, you should contact us.


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