• Individual income tax rates

    The Government has announced that from 1 July 2016, for individual taxpayers, the marginal tax rate of 37 per cent starts at $87,000 instead of the previous $80,000.

    This new threshold also applies to foreign residents and working holiday makers.

    See also:

    Residents

    These rates apply to individuals who are Australian residents for tax purposes.

    Tax rates 2016–17

    The following rates for 2016–17 apply from 1 July 2016.

    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.

    See also:

    Tax rates 2015–16

    The following rates for 2015–16 applied from 1 July 2015.

    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.

    See also:

    Foreign residents

    These rates apply to individuals who are foreign residents for tax purposes.

    Tax rates 2016–17

    The following rates for 2016–17 apply from 1 July 2016.

    Taxable income

    Tax on this income

    0 – $87,000

    32.5c for each $1

    $87,001 – $180,000

    $28,275 plus 37c for each $1 over $87,000

    $180,001 and over

    $62,685 plus 45c for each $1 over $180,000

    Foreign residents are not required to pay the Medicare levy.

    The above rates do not include the Temporary Budget Repair Levy; this levy is payable at a rate of 2% for taxable incomes over $180,000.

    See also:

    Tax rates 2015–16

    The following rates for 2015–16 applied from 1 July 2015.

    Taxable income

    Tax on this income

    0 – $80,000

    32.5c for each $1

    $80,001 – $180,000

    $26,000 plus 37c for each $1 over $80,000

    $180,001 and over

    $63,000 plus 45c for each $1 over $180,000

    Foreign residents are not required to pay the Medicare levy.

    Children

    If you are under the age of 18, and receive unearned income (for example, investment income), special rates apply.

    See also:

    Working holiday makers

    The following rates for 2016–17 apply from 1 January 2017.

    Taxable income

    Tax on this income

    $0 – $37,000

    15c for each $1

    $37,001 – $87,000

    $5,550 plus 32.5c for each $1 over $37,000

    $87,001 – $180,000

    $21,800 plus 37c for each $1 over $87,000

    $180,001 and over

    $56,210 plus 45c for each $1 over $180,000

    The above rates do not include the Temporary budget repair levy; this levy is payable at a rate of 2% for taxable incomes over $180,000.

    See also:

    Calculators

    A simple tax calculator is available to help you calculate the tax on your taxable income.

    The Income tax estimator gives you an estimate of the amount of your tax refund or debt, and takes into account:

    • the Medicare levy
    • higher education loan scheme repayments
    • tax offsets
    • tax credits.

    Tax deducted from your pay

    If you want to know how much your employer (or other payer) is required to withhold from payments to you, use our Tax withheld calculator.

    Our other useful calculators include:

    See also:

    If you need help applying this information to your personal situation, phone us on 13 28 61.

    Last modified: 09 Dec 2016QC 16218