Tax Rates &
Thresholds
Handy Guide
2014/15 Income Year
Issued August 2014
Taxation of
Superannuation Benefits
Superannuation benefits from a taxed source
Age of recipient
Lump Sum
Income stream
60 and over
Preservation age
to age 59
Not assessable not exempt
– No tax on amount below the
low rate cap*
Not assessable not exempt
Taxed at marginal rates, but
eligible for 15% tax offset
Under
preservation age
– Taxed at a maximum rate of
15% on amount over the low
rate cap
Taxed at maximum rate of 20%
Taxed at marginal rates,
with no tax offset (15% tax
offset available if a disability
superannuation benefit)
* Low rate cap amount: $185,000 (2014/15)
Superannuation benefits from an untaxed source
Age of recipient
Lump sum
Income stream
60 and over
– Taxed at a maximum rate
of 15% on amount up to the
untaxed plan cap*
Taxed at marginal rates but
eligible for a 10% tax offset
Preservation age
to age 59
– Taxed at 45% on amount over
the untaxed plan cap*
– Taxed at maximum rate of
15% on amount up to the low
rate cap**
Taxed at marginal rates, with no
tax offset
– Taxed at maximum rate of 30%
on amount above the low rate
cap amount up to the untaxed
plan cap
Under
preservation age
– Taxed at 45% on amount over
the untaxed plan cap
– Taxed at a maximum rate of
30% on amount up to the
untaxed plan cap
Taxed at marginal rates, with no
tax offset
– Taxed at 45% on amount over
the untaxed plan cap
* Untaxed plan cap amount: $1.355m (2014/15)
** Low rate cap amount: $185,000 (2014/15)
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Taxation of
Superannuation Death Benefits
Payments to dependants
Age of deceased
Superannuation Age of
death benefit
recipient
Any age
Lump sum
Any age
Aged 60 and
above
Income stream
Any age
Below age 60
Tax treatment
Tax-free (not assessable, not exempt
income)
Taxable component:
– element taxed in the fund is tax-free
Income stream
Above age 60
– element untaxed in the fund is taxed
at marginal rates. Recipient entitled
to a 10% tax offset on this amount
Taxable component:
– element taxed in the fund is tax-free
Below age 60
Income stream
Below age 60
– element untaxed in the fund is taxed
at marginal rates. Recipient entitled
to a 10% tax offset on this amount
Taxable component:
– element taxed in the fund is taxed at
marginal rates. Recipient entitled to
a 15% tax offset on this amount
– element untaxed in the fund is taxed
at marginal rates
Payments to non-dependants
Age of deceased
Superannuation Age of
death benefit
recipient
Tax treatment
Any age
Lump sum
Taxable component:
Any age
– element taxed in the fund is taxed at a
maximum rate of 15%
Any age
Income stream
Any age
– element untaxed in the fund is taxed at
a maximum rate of 30%
– Death benefit cannot be paid as
income stream
– Income streams that commenced
before 1 July 2007 are taxed as if
received by a dependant (see above)
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Capital Gains Tax
Assets held longer than 12 months
Purchase date
CGT event happens
CGT Calculation
Before 20/9/1985
20/9/1985 - 20/9/1999
Any time
After 20/9/1999
After 20/9/1999
Any time
Nil
Indexed cost base method*
or discount method**
Discount method**
* Indexation of cost base frozen as at 30 September 1999 (68.7).
** 50% discount (individuals and trusts); 33 1/3% discount (complying superannuation
entities, FHSA trust and life insurance companies for complying superannuation/FHSA assets).
Note that from 8 May 2012, the CGT discount no longer applies to non-residents but remains
available for capital gains accrued before this time where non-residents choose to obtain a
market valuation of assets as at 8 May 2012.
Fringe Benefits Tax
FBT rate (2014/15)
Fringe benefit taxable amount - gross-up rate
47 %
- Type 1 benefits - 2.0802
- Type 2 benefits - 1.8868
Superannuation Guarantee Charge
The SG rate is 9.5% for 2014/15.
The government proposes to delay the increase in the SG rate so that it will remain at
9.5% until 2017/18, and then increase by 0.5% on 1 July of each year from 2018/19 to
2022/23, when the SG rate will be 12%.
Maximum contribution base
Year
2014/15
Amount in a quarterly contribution period
$49,430
The maximum contribution base acts as a ceiling on an employee’s earnings for each
quarter in a financial year effectively limiting the amount of superannuation support that
the employer is required to provide for the employee for the quarter, and the amount of
the SG shortfall (and consequent SG charge) payable in respect of the employee.
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tax, business and financial advice to individuals and businesses from
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Superannuation Contributions
Contribution caps
Contributions cap type
2014/15
Concessional contributions cap
Concessional contributions cap – aged 49 years or more on
30 June 2014
Non-concessional contributions cap*
Non-concessional contributions - CGT cap amount
$30,000
$35,000
$180,000
$1.355m
* A bring forward rule allows individuals aged under 65 to make non-concessional contributions
of up to three times their non-concessional contributions cap over a three-year period. The bringforward cap is three times the non-concessional contributions cap of the first year in which the rule
applies.
Government co-contribution (2014/15)
Maximum co-contribution payable
Lower income
threshold
Higher income
threshold
$500*
$34,488
$49,488
Low income superannuation contribution 2012/13
Individual’s adjusted
taxable income:
$0 - $37, 000
LISC amount payable is:
(i) ECC x 15% (except where (ii) or (iii) applies)
(ii) $500 where the amount worked out in (i) exceeds $500
(iii) $10 where the amount worked out in (i) is less than $10
An individual is entitled to a low income superannuation contribution (LISC), based on 15% of the
individual’s total eligible concessional contributions (ECC), up to a maximum of $500. However, the
government proposes to abolish the LISC with effect from 1 July 2013.
Spouse contributions – tax offset
Receiving spouse’s
assessable income* (AI)
Maximum contributions
entitled to tax offset (MC)
Maximum tax offset
(18% of the lesser of)
$0 - $10,800
$10,801 - $13,799
$13,800 +
$3,000
$3,000 - (AI - $10,800)
Nil
MC or actual contributions
MC or actual contributions
Nil
* AI is the sum of the person’s assessable income, reportable fringe benefits total and reportable
employer superannuation contributions.
DISCLAIMER
The information provided in this guide is believed to be accurate
as at August 2014. However, the publisher and authors expressly
disclaim all and any liability and responsibility to any person, of the
consequences of anything done or omitted to be done by any such
person in reliance of the contents of this publication.
For all your taxation information, refer to the CCH Australian Master
Tax Guide - the essential reference guide for tax professionals.
Information is correct at time of printing.
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Income Tax Rates
Individuals (2014/15)
Residents
2014/15
Taxable income (column 1)
Tax on column 1
% on excess (marginal rate)
$18,200
$37,000
$80,000
$180,000*
Nil
$3,572
$17,547
$54,547*
19
32.5
37
45*
* For taxable incomes exceeding $180,000, the 2% budget repair levy applies for that part of the
taxable income exceeding $180,000. Non-refundable tax offsets cannot be used to offset the budget
repair levy; only the foreign income tax offset can be used to offset against the levy.
Medicare levy/Medicare levy surcharge
For 2014/15, the rate of Medicare levy is 2% of a resident individual’s taxable income for the
income year. No Medicare levy is payable where a resident individual’s taxable income does
not exceed a certain threshold amount (not yet known; $20,542 for 2013/14).
Further, where a resident individual is not covered by private patient hospital insurance and
their “income for surcharge purposes” for the year is more than $90,000, an additional Medicare levy surcharge of 1% to 1.5% is payable depending on their level of income and age.
The table below indicates how the Medicare levy surcharge rules apply in conjunction with
the private health insurance rebate rules.
Singles
Families*
Under 65 years
of age
65–69 years
of age
70 years of age
and over
Percentage rate
Income
$90,001–
$105,001–
$105,000
$140,000
$180,001–
$210,001–
$0–$180,000
$210,000
$280,000
Private health insurance rebate
Tier 1
Tier 2
$0–$90,000
$140,001 and
over
$280,001 and
over
Tier 3
29.04%†
19.36%†
9.68%†
0%
33.88%†
24.2%†
14.52%†
0%
38.72%†
29.04%†
19.36%†
0%
0%
Medicare levy surcharge
1%
1.25%
1.5%
* The families’ threshold is increased by $1,500 for each dependent child after the first. Families
include couples and single parent families.
† The private health insurance rebate is indexed annually by a rebate adjustment factor on 1
April each year. Accordingly, these rebate figures are only applicable from 1 July 2014 to 31
March 2015.
Non-residents
2014/15
Taxable income (column 1)
Tax on column 1
% on excess (marginal rate)
Nil
$ 80,000
$180,000
Nil
$26,000
$63,000
32.5
37
45
* For taxable incomes exceeding $180,000, the 2% budget repair levy applies for that part
of the taxable income exceeding $180,000. Non-refundable tax offsets cannot be used to
offset the budget repair levy; only the foreign income tax offset can be used to offset against
the levy.
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Company rates (2014/15)
The following table shows the rates of tax applicable to companies in relation to their
income for the 2013/14 income year.
Type of company
Tax Rate
Private companies (other than life insurance companies)
Public companies (other than life insurance companies)
Companies (other than life insurance companies) that are RSA providers
– Standard component of taxable income
– RSA component of taxable income – FHSA component of taxable income (if any)
Life insurance companies:
– Ordinary class of taxable income – Complying superannuation/FHSA class of taxable income 30%
30%
30%
15%
15%
30%
15%
Superannuation funds (2014/15)
Type of fund
Tax rate
Complying superannuation funds:
(i) Assessed on income, including realised capital gains and assessable
contributions*
(ii) Assessed on non-arm’s length income, private company dividends and
certain trust distributions
Non-complying superannuation funds
Assessed on income, including realised capital gains and assessable
contributions*
Complying ADFs:
(i) Assessed on income, including realised capital gains and assessable
contributions
(ii) Assessed on non-arm’s length income, private company dividends and
certain trust distributions
Non-complying ADFs:
Assessed on income, including realised capital gains and assessable
contributions
PSTs
(i) Assessed on income, including realised capital gains and assessable
contributions transferred to the PST
(ii) Assessed on non-arm’s length income, private company dividends and
certain trust distributions.
15%
47%
47%
15%
47%
47%
15%
47%
• Additional tax at the rate of 34% (complying funds) and 4% (non-complying funds) is
payable on no-Tax File Number (TFN) contributions income that is included in assessable
contributions. A tax offset is available if a TFN is provided to the fund within four years.
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Personal tax offsets
Personal tax offsets and rebates (2014/15)
Personal tax offsets and
rebates (2014/15)
Cut-out when (adjusted)
taxable income reaches
Maximum amount
Dependant spouse (with no
Proposed to be abolished from
dependant children)
2014/15
Dependant (Invalid and Carer)
$2,535
Mature age worker
Proposed to be abolished from
2014/15
Medical expenses
Depending on taxpayer’s and/
or family’s adjusted taxable
income, 20% of excess of net
medical expenses over $2,218
or 10% of excess over $5,233.
Note that transitional criteria
apply
Private health insurance
Dependent on age of
(see above)
person(s) covered by policy
and income level(s)
Zone rebates
• Ordinary Zone A
$338 + 50% of dependent
(invalid and carer) tax offset
(proposed)
• Ordinary Zone B
$57 + 20% of dependent
(invalid and carer) tax offset
(proposed)
• Special Zone A or B
$1,173 + 50% of dependent
(invalid and carer) tax offset
(proposed)
Defence Force
Same as for Ordinary Zone A
Income arrears
Applicable to lump sum
Medicare levy surcharge lump payments of income paid in
sum arrears
arrears
$10,422
Low income earner’s tax offset (2014/15)
Taxable income
Amount of offset
$0 - $37,000
$37,000-$66,667
> $66,667
$445
$445 - [(taxable income - $37,000) x 1.5%]
Nil
Senior Australians and Pensioners Tax Offset (2014/15)
Family situation
Maximum offset
Single
Couple (each)
Illness separated couple
$2,230
$1,602
$2,040
Shade-out threshold Cut-out threshold
$32,279
$28,974
$31,279
$50,119
$41,790
$47,599
For further information on the availability and application of tax offsets, see Chapter 15 of
the CCH Australian Master Tax Guide.
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Taxation of Employment
Related Payments
Life benefit employment termination payments
Component
Tax treatment
Tax free component
Taxable component
Tax-free
• P
reservation age and over
– amount up to ETP cap* — taxed at a maximum rate of 15%
– amount over ETP cap* — taxed at 45%
• B
elow preservation age
– amount up to ETP cap* — taxed at a maximum rate of 30%
– amount over ETP cap* — taxed at 45%
* ETP cap amount: $185,000 (2014/15). For certain ETPs, the ETP cap works in conjunction
with a whole-of-income cap ($180,000).
Preservation age
Date of birth
Preservation age
Before 1 July 1960
1 July 1960 – 30 June 1961
1 July 1961 – 30 June 1962
1 July 1962 – 30 June 1963
1 July 1963 – 30 June 1964
On or after 1 July 1964
55
56
57
58
59
60
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Death benefit employment termination payments
Component
Tax treatment
Tax free component
Taxable component
Tax-free
•P
ayment to a dependant
– amount up to ETP cap — tax-free
– amount over ETP cap — taxed at 45%
•P
ayment to a non-dependant
– amount up to ETP cap — taxed at a maximum rate of 30%
– amount over ETP cap — taxed at 45%
•P
ayment to trustee of deceased estate
– taxed in the hands of the trustee, based on whether the
beneficiary is a dependant or non-dependant (see above)
* ETP cap amount: $185,000 (2014/15)
Genuine redundancy and early retirement scheme payments
Income year
Base amount
Plus for each complete year of service
2014/15
$9,514
$4,758
Unused annual leave payment rules
Assessable
portion
Period of accrual of leave
Maximum
rate
General retirement or termination:
– accrual before 18 August 1993
100%
30%
– accrual on or after 18 August 1993
100%
Marginal
Genuine redundancy amount, early retirement scheme
amount or invalidity amount paid on or after 18 August 1993
100%
30%
Unused long service leave payment rules
Period of accrual of leave
Assessable
portion
Maximum rate
5%
Marginal
General retirement or termination:
– accrual before 16 August 1978
– accrual 16 August 1978 to 17 August 1993
100%
30%
– accrual on or after 18 August 1993
Genuine redundancy amount, early retirement
scheme amount or invalidity amount:
100%
Marginal
5%
Marginal
100%
30%
– accrual before 16 August 1978
– accrual on or after 16 August 1978
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