Personal income tax rates for non-residents

The government announced in the 2012-13 Budget that it will adjust the personal income tax rates and thresholds that apply to non-residents for Australian tax purposes.

The first two personal marginal tax rate thresholds for non-residents have been merged into a single threshold, with the rate for this new threshold aligning to the second marginal tax rate for residents, which is 32.5% on the part of ordinary taxable income that does not exceed $80,000.

Ordinary taxable income that exceeds the threshold of $80,000 will be taxed according to the same rates and thresholds that apply to resident taxpayers.

Legislation and supporting material

The following legislation received royal assent on 21 June 2012:

• Tax Laws Amendment (Income Tax Rates) Act 2012 (Portable Document Format - PDF- 26 KB)
• Explanatory memorandum (PDF 123KB).

More information For more information about realigning the tax rates and thresholds for non-residents: refer to page 34 of Budget Paper No. 2 for the 2012-13 Federal Budget visit the Parliament of Australia website aph.gov.au and refer to Non-residents.