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Tax Rates

Residents* – year ending 30 June 2018
Taxable income ($) Tax** ($) % on excess
18,200 Nil 19
37,000 3,572 32.5
87,000 19,822 37
180,000 54,232 45
For the year ending 30 June 2018, a Medicare levy of 2% of taxable income applies to most residents. An additional Medicare levy surcharge of up to 1.5% (see below for rates and thresholds) applies to certain higher income taxpayers not covered by health insurance for private patient hospital cover.
Non-residents* – year ending 30 June 2018
Taxable income ($) Tax** ($) % on excess
0 Nil 32.5
87,000 28,275 37
180,000 62,685 45
  * Special rates apply to unearned income of children aged under 18 years at year end where that income is more than $416. ** These amounts do not include the Medicare levy and surcharge, or any tax offsets that may be available.
Medicare levy surcharge (singles) – year ending 30 June 2018
Income for surcharge purposes^ ($) Surcharge rate (%)
90,000 or less 0.00
90,001 – 105,000 1.00
105,001 – 140,000 1.25
More than 140,000 1.50
Medicare levy surcharge (families) – year ending 30 June 2018
Income for surcharge purposes^# ($) Surcharge rate (%)
180,000 or less 0.00
180,001 – 210,000 1.00
210,001 – 280,000 1.25
More than 280,000 1.50
^ Income for surcharge purposes includes, among other things, taxable income, reportable fringe benefits amounts, reportable superannuation contributions and net investment losses. # The family income thresholds are increased by $1,500 for each dependant child after the first child.
For premiums paid between 1 April 2017 and 31 March 2018*
Singles
Income for surcharge purposes^ ($) Rebate (%)
Less than 65 years of age Age 65 to 69 years Age 70 years and over
90,000 or less 25.934 30.256 34.579
90,001 – 105,000 17.289 21.612 25.934
105,001 – 140,000 8.644 12.966 17.289
More than 140,000 0 0 0
For premiums paid between 1 April 2017 and 31 March 2018*
Families
Income for surcharge purposes#^ ($) Rebate (%)
Less than 65 years of age Age 65 to 69 years Age 70 years and over
180,000 or less 25.934 30.256 34.579
180,001 – 210,000 17.289 21.612 25.934
210,001 – 280,000 8.644 12.966 17.289
More than 280,000 0 0 0
* Rebate percentages are adjusted annually on 1 April. ^ Income for surcharge purposes is measured for the financial year ending 30 June, and includes, among other things, taxable income, reportable fringe benefits amounts, reportable superannuation contributions and net investment losses. # The family income thresholds are increased by $1,500 for each dependant child after the first child.
  • Base rate* entities - 27.5%
  • All other companies - 30%
* A base rate entity for the 2017-18 income year is one which carries on a business and has aggregated turnover of less than $25 million.
  • Benchmark interest rate for 2017-18 — 5.30%
  • Complying superannuation fund tax rate (excluding non-arm's length component) — 15%
  • Complying superannuation fund tax rate (non-arm's length component) — 45%
  • Non-complying superannuation fund tax rate — 45%
  • Additional tax payable on concessional contributions of very high income earners* — 15%
  • Transfer balance cap (cap on the amount that can be transferred to the tax-free earnings retirement phase of superannuation) — $1,600,000
Superannuation contribution caps – year ending 30 June 2018
Type of superannuation contribution Contributions cap**
Concessional (deductible) $25,000
Non-concessional (non-deductible) $100,000^

* Applies to individuals whose combined income for surcharge purposes (excluding reportable superannuation contributions) and concessionally taxed superannuation contributions exceed $250,000 for the income year.

** Amounts contributed in excess of the applicable cap may be subject to additional tax or included in the individual’s assessable income and taxed at their marginal tax rate. Individuals can choose to have up to 85 per cent of their excess concessional contributions for a financial year released from superannuation. Additionally, individuals can choose to withdraw excess non-concessional contributions plus associated earnings from superannuation.

^ Individuals under 65 years of age can make non-concessional contributions of up to $300,000 over a three-year period (known as the 'bringing forward rule'). Due to the reduction in the non-concessional contributions cap from $180,000 to $100,000 with effect from 1 July 2017, some individuals may have a different cap if the bringing forward rule was triggered in the 2015-16 or 2016-17 income years.

Superannuation guarantee charge (SGC)

SGC is payable by employers if during 2017-18 they fail, in relation to each employee, to contribute 9.5% of the employee's ordinary time earnings (base capped at $52,760 per quarter).
Net capital gains in respect of CGT assets acquired after 19 September 1985 are included in assessable income and taxed at marginal rates.

A CGT discount factor automatically applies to individuals and trustees (of 50%*) and to complying superannuation funds (of 33.33%) in respect of CGT assets acquired after 11.45am Australian Eastern Standard Time (AEST) on 21 September 1999 and held for at least 12 months before the time of the CGT event. The CGT discount is not available for foreign resident or temporary resident individuals in respect of gains accrued after 7.30pm (AEST) on 8 May 2012. The CGT discount remains available for capital gains accrued prior to this time where the relevant individual chooses to obtain a market valuation of assets as at 8 May 2012.

* The Government has announced that, from 1 January 2018 the CGT discount will be increased to 60% for resident individuals investing in affordable housing. The affordable housing must be managed through a registered community housing provider and held for a minimum period of three years. As at 1 July 2017, this measure was not enacted.
The rate of depreciation of a depreciating asset (plant) generally depends upon the date of acquisition, whether the taxpayer is a small business entity and the asset's effective life (self-assessed or as determined by the Commissioner).
Years in effective life Prime cost (%) Diminishing value (%)*
2 50 100
3 33.3 66.67
4 25 50
5 20 40
10 10 20
15 6.67 13.33
20 5 10
30 3.3 6.67
40 2.5 5
* Diminishing value rates specified are applicable generally to assets first held on or after 10 May 2006.

Eligible small businesses - those that carry on business and have aggregated turnover of less than $10 million (for the 2017-18 income year) - can choose to apply simplified capital allowances rules, including pooling of depreciating assets and an immediate deduction for a depreciating asset that has a cost that does not exceed $20,000 for assets first acquired on or after 7.30pm, by legal time in the Australian Capital Territory, on 12 May 2015, and first used or installed ready for use before 30 June 2018.

The construction cost of income producing buildings and structural improvements may be written off at the following rates where construction commenced on or after 27 February 1992^.
Qualifying buildings and structural improvements Annual deduction (%)
Short-term traveller accommodation 4.0
Industrial buildings 4.0
Other income producing buildings 2.5
Structural improvements 2.5
^ Where construction commenced prior to 27 February 1992, qualifying buildings may be written off at either 2.5% or 4% pa, depending on the date on which construction commenced.
  • Motor vehicle depreciation cost limit for 2017-18 – $57,581
Under the Research and Development (R&D) tax incentive, entities may be eligible for a tax offset for expenditure on eligible R&D activities and for the decline in value of depreciating assets used for eligible R&D activities.
  • Refundable* R&D tax offset – 43.5%
  • Non-refundable R&D tax offset – 38.5%
A $100 million cap on the amount of R&D expenditure that companies can claim as a tax offset at the above rates applies. For expenditure over $100 million, companies are able to claim a tax offset at the company tax rate.
* Generally only available to eligible entities with an aggregated turnover of less than $20 million.
  • FBT rate for year ending 31 March 2018 – 47%
Type of aggregate fringe benefit amount FBT gross-up factor
Year ending
31 March 2018
Type 1 – entitlement to GST input tax credits 2.0802
Type 2 – no entitlement to GST input tax credits 1.8868
Key FBT figures Year ending
31 March 2018
Benchmark interest rate for loan benefits 5.25%
Car parking benefit threshold $8.66
Record keeping exemption threshold $8,393
Car fringe benefits statutory formula 0.2*
* For contracts entered into from 7.30pm AEST 10 May 2011. Different rates may apply for contracts entered into before this date.
PRRT applies to all onshore and offshore petroleum projects (except those in the Joint Petroleum Development area in the Timor Sea).
  • PRRT rate – 40%
State/Territory Rate (%) Annual Threshold ($)1
NSW 5.45 750,000
ACT 6.85 2,000,000
VIC 4.85 / 3.65 2 625,000
QLD 4.75 1,100,000 3
TAS 6.1 1,250,000
SA 4.95 4 600,000
WA 5.5 850,000 5
NT 5.5 1,500,000 6
  • The above thresholds may be reduced where the company is part of a group and/or pays interstate wages.
  • The lower 3.65% rate applies to business where at least 85% of their payroll goes to regional employees.
  • This threshold reduces by $1 for every $4 of Australian wages over $1,100,000. Businesses with annual taxable wages of $5.5 million or more will be subject to payroll tax of 4.75% on their entire taxable wages.
  • A small business rate of 2.5% is proposed to apply to firms with payrolls between $600, 000 and $1 million, then phase up to the general rate of 4.95% for payrolls above $1.5 million.
  • This threshold reduces gradually for employers with annual taxable wages between $850,000 and $7.5 million. Businesses with annual taxable wages of $7.5 million or more will be subject to payroll tax at 5.5% on their entire taxable wages.
  • This threshold reduces by $1 for every $4 of wages over $1,500,000. Businesses with annual taxable wages of $7.5 million or more will be subject to payroll tax of 5.5% on their entire taxable wages.
  • The facts and figures outlined in this tax summary are current as at 1st July 2017.
Entity size GST reporting obligations Due date for payment of GST**
Annual turnover less than $20 million Quarterly* 28th day after the end of the quarter (except for the December quarter)^
Annual turnover $20 million or more Monthly 21st day after the end of the month
* Option to report monthly and some small business entities with aggregated turnover of less than $2 million may be able to report annually. The Government has proposed that the small business aggregated turnover threshold be increased to $10 million with effect from 1 July 2016. As at 15 November 2016, this measure was not enacted. ** If due date falls on a weekend or public holiday, lodgment / payment is due on the next business day. ^ Payment of GST for the December quarter is not due until the following 28 February.
Annual PAYG instalment for 2016-17 – due on 21 October 2017. A taxpayer is generally only eligible to make an annual PAYG instalment if it is not registered for, or required to be registered for, GST, and its most recent notional tax as notified by the Commissioner is less than $8,000.
Quarterly PAYG instalments for 2016-17
Quarter ending Non-deferred BAS payer*^ Deferred BAS payer*^
30 September 2016 21 October 2016 28 October 2016
31 December 2016 21 January 2017 28 February 2017
31 March 2017 21 April 2017 28 April 2017
30 June 2017 21 July 2017 28 July 2017
* Extensions may be available for tax agents and for BAS Agents, and for electronic lodgment. ^ If due date falls on a weekend or public holiday, lodgment/payment is due on the next business day.

Monthly PAYG instalments

A monthly PAYG instalment regime applies to corporate tax entities with base assessment instalment income (BAII) of $20 million or more and all other entities in the PAYG instalment system with BAII of $1 billion or more. From 1 January 2017, the monthly PAYG instalment regime will be extended to cover all entities in the PAYG instalment system with BAII of $20 million or more. Monthly PAYG instalments are due on the 21st day of the next month for a non-deferred BAS payer, or the 28th day of the next month (except for the December instalment which is due on 28 February) for a deferred BAS payer. If due date falls on a weekend or public holiday, lodgment / payment is due on the next business day.

Payment dates for PAYG Withholding

Large withholders – an entity will generally be a large withholder if amounts withheld by the entity (and members of the same wholly-owned company group) during the previous financial year exceeded $1 million. A large withholder must pay amounts to the Commissioner in accordance with the following table.
Day amount withheld Due date for payment to the Commissioner *
Saturday or Sunday The second Monday after that day
Monday or Tuesday The first Monday after that day
Wednesday The second Thursday after that day
Thursday or Friday The first Thursday after that day
* If due date falls on a public holiday, payment is due on the next business day.
Medium withholders – an entity will generally be a medium withholder if it is not a large withholder and amounts withheld by the entity during the previous financial year exceeded $25,000. Amounts withheld must be paid to the Commissioner on the 21st day of the month following the month in which the amount was withheld for a non-deferred BAS payer. For a deferred BAS payer, payment is due on the 28th day of the month following the month in which the amount was withheld (except for the December amount which is due on 28 February). If due date falls on a weekend or public holiday, payment is due on the next business day. Small withholders – an entity will generally be a small withholder if it is neither a large or medium withholder. A small withholder must pay amounts to the Commissioner in accordance with the following table.
Amounts withheld during quarter ending Non-deferred BAS payer *^ Deferred BAS payer *^
30 September 2016 21 October 2016 28 October 2016
31 December 2016 21 January 2017 28 February 2017
31 March 2017 21 April 2017 28 April 2017
30 June 2017 21 July 2017 28 July 2017
* Extensions may be available for tax agents and for BAS Agents, and for electronic lodgment. ^ If due date falls on a weekend or public holiday, payment is due on the next business day. The facts and figures outlined in this tax summary are current as at 15 November 2016.
  • MIT withholding tax rate for fund payments (resident in an information exchange country*) – 15%^
  • MIT withholding tax rate for fund payments (not a resident in an information exchange country*) – 30%
  • “Clean building” MIT withholding tax rate for fund payments (resident in an information exchange country*) – 10%
  • Tax rate for non-arm’s length income derived by MIT – 30%
* An information exchange country is a country with which Australia has an effective exchange of information agreement and is prescribed by Regulation 44E of the Taxation Administration Regulations 1976.

^ The Government has announced new measures to encourage investment in affordable housing by MITs. The new arrangements, to apply from income years starting on or after 1 July 2017, may result in a 30% rate applying to certain fund payments made to a resident in an information exchange country where certain conditions are not met. As at 1 July 2017, these measures were not enacted.

Information mentioned in the above tax summary is latest as at 10th July 2017.

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