• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

EtaxLocal

EtaxLocal | Tax Agents | Small Business Accountants

  • Home
  • Business Services
    • Company Tax Return
    • Small Business Tax Returns
    • Partnership Tax Returns
    • Trust Tax Returns
    • BAS Services
    • Small Business Accounting
    • Complete Packages
    • Small Business Bookkeeping
    • Etax Local Business Tax Checklists
  • Individual Services
    • Tax Return Checklists – free download
    • SMSF Annual Tax Return
    • Rideshare Tax Returns
    • Freelancer Tax, Income and BAS Services
    • SMSF Audits
    • Late Tax Returns
    • Early 2020 Tax Returns
  • Client Portal
  • Blog
  • About
    • Our People
    • Etax Local Website User Terms And Conditions
    • Etax Local Security and Privacy Statement
    • Frequently Asked Questions
  • Contact
  • Membership
    • Members’ Feedback
    • Member Login

Personal Australian Tax Rates

2018 Tax Rates Explained

With five different income brackets, the Medicare levy, the low income offset and hundreds of pages of tax laws, understanding personal Australian tax rates can be difficult.

There are some rules that take many taxpayers by surprise.

For example, you should know that the ATO classifies any interest you earn from savings or investments counts as part of your income.

The ATO tax rate applied to your income will vary, depending on your ‘annual taxable income’. This means money earned from employment plus other forms of income such as interest.

Australian Tax Rates for 2018 (2017-2018 tax year)

We’ve summarised Australian Tax rates for the 2017-2018 tax season below. Take a look to see which income band you are likely to be classified under.

  • $0-$18,200 = Nil tax
  • $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

While the above tax rates give you a rough idea of the amount of tax you will pay each year, you should be aware that the Medicare Levy and the Low Income Tax Offset also affect your tax payable.

Medicare Levy

There are some exemptions but in general, Australian tax residents pay a Medicare levy, which is calculated at a flat rate of 2% of a taxpayer’s taxable income over a certain level.

At time of writing the ATO stated:

  • You do not have to pay the Medicare levy if your taxable income is equal to or less than $21,655 ($34,244 for seniors and pensioners entitled to the seniors and pensioners tax offset).
  • You will pay only part of the Medicare levy if your taxable income is between $21,655 and $27,068 ($34,244 and $42,805 for seniors and pensioners entitled to the seniors and pensioners tax offset).
  • If you are single with no dependants and your taxable income is over $27,069 ($42,806 for seniors and pensioners entitled to the seniors and pensioners tax offset), you do not qualify for a Medicare levy reduction.

Low Income Tax Offset

As well as there being no tax on the first $18,200 there is also a low income tax offset.

The maximum value of the low-income tax offset is $445, with the reduction rate being decreased by 1.5 cents for each dollar of taxable income over $37,000.  If your income exceeds $66,667, no offset is available.

See below:

  • $0 – $37,000 =  $445
  • $37,001 – $66,666 = $445 less 1.5% of excess over $37,000
  • $66,667 and above = Nil

Taxation and calculating your Australian tax rates can be quite confusing. At Etax Local Accountants our aim is to take this confusion out of the equation. Our highly qualified accountants are very knowledgeable on all aspects of taxation in Australia and will make doing your taxes as easy as possible.


Need to sort out your personal tax strategy?

Talk to Etax Local today on 1300 174 689 or use our online contact form below.

Contact Us

[ninja_form id=2]

 

Primary Sidebar

Contact Us Today

GET A QUOTE

CLIENT LOGIN

Call: 1300 174 689

  • Company Tax Returns
  • Small Business Accounting
  • Small Business Start Up
  • Small Business Tax Returns
  • BAS Services
  • Trust Tax Returns
  • Partnership Tax Returns
  • Small Business Packages

Prefer to do your individual tax return yourself online?

Go to etax.com.au

Etax.com.au is our sister business, a self serve tax return for individual taxpayers. You enter your own details and deductions. Etax accountants review your return, provide tax agent advice as needed, then lodge to the ATO.

Footer

About Etax Local

  • Home
  • About Etax Local
  • FAQs
  • Security and Privacy Statement
  • Member Login
  • Tax Return Checklists – free download
  • Personal Australian Tax Rates
  • Find an Etax Local Member

Business Services

  • Company Tax Returns
  • Small Business Accounting
  • Small Business Start Up
  • Small Business Tax Returns
  • BAS Services
  • Trust Tax Returns
  • Partnership Tax Returns
  • Small Business Packages
  • Individual Tax Returns
  • SMSF Tax Returns
  • Late Tax Returns

Accredited Members

Tax Agent
#39961005

Etaxlocal Pty Ltd is a CPA Practice

Quality Assurance

Protected by SSL Security

Partners and Associations

 

 

Copyright © 2021 · EtaxLocal Pty Ltd
Liability limited by a scheme approved under Professional Standards Legislation.