Income Tax Rates Act 1986

Sch 7 heading amended by No 70 of 1989.

Part II cl 4 amended by No 47 of 2018.

Example:

Rosie earns a $ 60,000 salary while a working holiday maker from 1 July 2017 to 31 March 2018. She also earns $ 29,000 while holding a different class of visa from 1 April 2018 to 30 June 2018.

The $ 60,000 salary is Rosie ' s working holiday taxable income and is the first part of her ordinary taxable income. Under Part III, she pays tax at the rate of 15 % on $ 37,000 of that salary, and tax at the rate of 32.5 % on the remaining $ 23,000 of that salary.

The $ 29,000 income makes up the remaining parts of Rosie ' s ordinary taxable income. Under clause 1 of this Part, she pays tax at the rate of 32.5 % on $ 27,000 of that income, and tax at the rate of 37 % on the remaining $ 2,000 of that income.

Part II cl 4 inserted by No 92 of 2016, s 3 and Sch 1 item 6, applicable in relation to:

(a) assessable income derived on or after 1 January 2017; and

(b) so much of any amounts that can be deducted as relate to such assessable income.