Rates of Tax – 2011/12
Resident Individuals
The following rates apply to individuals who are residents of Australia for tax purposes for the entire
income year.
Taxable Income1
$
0 – 6,000
6,001 – 37,000
37,001 – 80,000
80,001 – 180,000
180,001+
Tax Payable2, 3
Nil
15% of excess over $6,000
$4,650 + 30% of excess over $37,000
$17,550 + 37% of excess over $80,000
$54,550 + 45% of excess over $180,000
1
The tax-free threshold may effectively be higher for taxpayers eligible for the low-income tax offset, the Senior Australians
Tax Offset and/or certain other tax offsets.
2
The above rates do not include the Medicare Levy of 1.5%.
3
These rates do not include the temporary Flood Levy which may also apply.
Resident Minors – Unearned (Division 6AA) Income
The following rates apply to the income of certain minors (e.g., persons under 18 years of age on the
last day of the income year who are not classed as being in a full-time occupation) that is not excepted
income (e.g., employment income):
Division 6AA Income
$
0 – 416
417 – 1,307
1,308+
Tax Payable1, 2
Nil
66% of excess over $416
45% of the entire amount
1
Medicare Levy may also be payable.
2
These rates do not include the temporary Flood Levy which may also apply.
Non-resident Individuals
The following rates apply to individuals who are not residents of Australia for tax purposes for the
entire income year:
Taxable Income
$
0 – 37,000
37,001 – 80,000
80,001 – 180,000
180,001+
Tax Payable1, 2
29% of the entire amount
$10,730 + 30% of excess over $37,000
$23,630 + 37% of excess over $80,000
$60,630 + 45% of excess over $180,000
1
Medicare Levy is not payable by non-residents.
2
These rates do not include the temporary Flood Levy which may also apply.
Non-resident Minors – Unearned (Division 6AA) Income
The following rates apply to the income of certain non-resident minors (e.g., persons under 18 years
of age on the last day of the income year who are not classed as being in a full-time occupation) that
is not excepted income (e.g., employment income).
Division 6AA Income
Tax Payable1, 2
$
0 – 416
29% of the entire amount
417 – 732
$120.64 + 66% of excess over $416
733+
45% of the entire amount
1
2
The Medicare Levy is not payable by non-residents.
These rates do not include the temporary Flood Levy which may also apply – see below.
Flood levy
For the 2011/12 income year only, a levy (tax) is imposed on taxpayers to assist reconstruction work
from the floods and Cyclone Yasi (i.e., the “flood levy”).
The flood levy generally operates as follows:
•
no levy is payable where the taxpayer has a taxable income of $50,000 or less, or where an exemption
applies (broadly where the taxpayer has been affected by a natural disaster);
•
individuals, both residents and non-residents, with a taxable income between $50,001 and $100,000
in the 2012 income year will pay a 0.5% levy on that part of taxable income above $50,000; and
•
individuals, both residents and non-residents, with a taxable income of $100,001 or more in the 2012
income year will pay a 0.5% levy on that part of their taxable income between $50,001 and $100,000
and a 1% levy on that part of their taxable income above $100,000.
The flood levy is automatically included in the tax taken out of salary and wages by an employer (for
salary and wage earners).
If the taxpayer pays instalments towards their expected tax liability, the flood levy will automatically
be included in the instalment rate. For example, this includes self-employed persons and investors,
or self-funded retirees.
Note that the flood levy cannot be reduced by non-refundable tax offsets.
Pro-Rated Tax-Free Threshold – Non-residents
The tax-free threshold that applies to residents (currently, $6,000 per annum) is pro-rated in an income
year in which a taxpayer was not a resident for tax purposes for the entire year. Specifically, the $500
threshold is allowed for each month that the taxpayer was a resident (including the month in which
the taxpayer became/ceased to be a resident).
Genuine Redundancy Payments
The tax-free amount of a genuine redundancy payment in 2011/12 is $8,435 plus $4,218 for each completed
year of service.
S.99 Assessment – Resident Deceased Estate
The following rates apply where a trustee is assessed under S.99 ITAA 1936 in respect of a resident
deceased estate. Where the date of death is less than 3 years before the end of the income year, the
trustee is assessed as a resident individual.
Taxable Income
Rate1, 2
$
%
Less than 3 years since death
0 – 6,000
6,001 – 37,000
37,001 – 80,000
80,001 – 180,000
180,001+
3 years or more since death
0 – 416
417 – 594
595 – 37,000
37,001 – 80,000
80,001 – 180,000
180,001+
1
2
Nil
15% of excess over $6,000
$4,650 + 30% of excess over $37,000
$17,550 + 37% of excess over $80,000
$54,550 + 45% of excess over $180,000
Nil
50% of excess over $416
$89 + 15% of excess over $594
$5,550 + 30% of excess over $37,000
$18,450 + 37% of excess over $80,000
$55,450 + 45% of excess over $180,000
Medicare Levy does not apply to S.99 assessments of deceased estate trustees.
These rates do not include the temporary Flood Levy which may also apply.
S.99A Assessment – No Beneficiary Presently Entitled
The following rate applies where there is no beneficiary entitled to the net income of a resident trust:
Taxable Income
Rate1
$
%
1+
45% of the entire amount
1
Medicare Levy is not included but does apply (except in relation to deceased estates).
Medicare Levy – 2011/12
General Rate
Taxpayer
Individual (resident)
Rate
%
1.5% of taxable income
Low-income Thresholds – Individuals
The 2011/12 Medicare Levy low-income thresholds for individuals are as follows:
Threshold Phase-in Limit2 1.5% at or
Amount1
Single Taxpayer
Above3
$
$
$
Not eligible for Senior Australians Tax Offset or Pensioner
19,404
19,405 – 22,828
22,829
Tax Offset
Eligible for Senior Australians Tax Offset
30,685
30,686 – 36,100
36,101
Eligible for Pensioner Tax Offset only
30,451
30,452 – 35,824
35,825
1
2
3
No Medicare Levy is payable on taxable income levels at or below the Threshold Amount.
Where taxable income falls within the Phase-in Limit, Medicare Levy is payable at 10% of the excess over the Threshold
Amount.
The Medicare Levy of 1.5% applies to the entire amount of taxable income.
Family Thresholds
A taxpayer who:
♦
has a spouse (married or de facto) on the last day of the income year;
♦
has not remarried after their spouse died during the income year; or
♦
who is eligible for the notionally retained sole parent rebate, the housekeeper or the childhousekeeper rebates (or would be entitled if they did not qualify for the Family Tax Benefit Part B);
may be eligible to pay no (or a reduced) Medicare Levy if their family income is within the thresholds set
out below for the relevant income year.
Family Thresholds – 2011/12
The 2011/12 Medicare Levy thresholds for families are as follows:
No. of Dependent
Family Income
Reduced Levy2
1
Children/Students
Threshold
$
$
$
Taxpayer Not Eligible for Senior Australians Tax Offset
1.5%
at or above3
$
0
32,743
32,744 – 38,521
38,522
1
35,750
35,751 – 42,058
42,059
2
38,757
38,758 – 45,596
45,597
3
41,764
41,765 – 49,134
49,135
4
44,771
44,772 – 52,671
52,672
5
47,778
47,779 – 56,209
56,210
6
50,785
50,786 – 59,747
59,748
Each extra child
3,007
3,538
Taxpayer Eligible for Senior Australians Tax Offset
1
0
44,500
44,501 – 52,352
52,353
1
47,507
47,508 – 55,890
55,891
2
50,514
50,515 – 59,428
59,429
3
53,521
53,522 – 62,965
62,966
4
56,528
56,529 – 66,503
66,504
5
59,535
59,536 – 70,041
70,042
6
62,542
62,543 – 73,578
73,579
Each extra child
3,007
3,538
Family Income is the combined income of a taxpayer and their spouse. If the taxpayer does not have a spouse, Family
Income is the taxpayer’s taxable income only. No Medicare Levy is payable on taxable income levels at or below the
Family Income Threshold.
2 The Medicare Levy shades in at 10% for every dollar where Family Income exceeds the Family Income
Threshold.
There is no 'Phase-in Limit' stated for families as there is with individuals since the figures change with the number of
dependants. Instead, a formula is applied to reduce the levy payable by families to 10% of the amount by which Family
Income exceeds the Family Income Threshold. The reduction is calculated as: A – (0.085 x (B – C)) where A is 1.5% of
the relevant Family Income Threshold, B is the Family Income and C is the Family Income Threshold. Where the levy is
also payable by the spouse, the reduction is shared according to the proportion that the taxable income of each bears to
the total Family Income.
3
The levy payable by the relevant taxpayer is 1.5% of their entire taxable income.
Medicare Levy Surcharge Thresholds
A surcharge of 1% is imposed on top of the 1.5% Medicare Levy where a taxpayer, their spouse and
dependants do not have an appropriate level of private patient hospital cover and the taxpayer's 'income
for surcharge purposes'1 exceeds the relevant threshold from the following table2:
No. of Dependent
Children or Students
0
1
2
3
4
5
Each extra child
1
2
3
4
Singles3
$
80,000
160,000
161,500
163,000
164,500
166,000
1,500
Family4
$
160,000
160,000
161,500
163,000
164,500
166,000
1,500
A taxpayer's 'income for surcharge purposes' is the sum of their:
– taxable income (including the net amount on which family trust distribution tax has been paid);
– reportable fringe benefits total;
– reportable superannuation contributions;
– exempt foreign employment income;
– total investment loss (including net financial investment losses and net rental losses),
Less any taxed component of a superannuation lump sum received which does not exceed the taxpayer's low rate cap.
Note however, the 1% Medicare Levy surcharge is only payable on a taxpayer's taxable income and reportable fringe
benefits total.
A policy taken out where the annual excess is greater than $500 for singles ($1,000 for couples) is deemed not to
provide private patient hospital cover.
Single taxpayers with dependants apply the 'Family' thresholds. However, the dependants' 'income for surcharge
purposes' is ignored.
Where the taxpayer is married, both the taxpayer's and spouse's 'income for surcharge purposes' are taken into
account when determining if the 'Family' threshold is exceeded.
To the extent either spouse is not liable for the 1.5% Medicare Levy due to deriving insufficient income, they are also not
liable to the 1% Medicare Levy surcharge.
HELP Repayment Thresholds – 2011/12
The Higher Education Loan Programme (HELP) offers Commonwealth loans to eligible students to
assist them with paying their higher education fees and to study overseas. A HELP debt is repaid
through the taxation system on a taxpayer's 'repayment income'.
Repayment income is the sum of the taxpayer's:
– taxable income;
– total net investment loss;
– reportable fringe benefits;
– exempt foreign employment income; and
– reportable superannuation contributions.
HELP Repayment Thresholds (including accumulated HECS debt)
Rate
of Repayment
%
HELP Repayment
Income
$
Nil
0 – $47,196
4
$47,196 – $52,572
4.5
$52,573 – $57,947
5
$57,948 – $60,993
5.5
$60,994 – $65,563
6
$65,564 – $71,006
6.5
$71,007 – $74,743
7
$74,744 – $82,253
7.5
$82,254 – $87,649
8
$87,650+
Company Rates of Tax – 2011/12
General Company Tax Rate1
Rate
%
Description of Taxpayer
Private companies (except life insurance companies RSAs + PDFs)
30
Public companies (except life insurance companies RSAs + PDFs)
30
Corporate Unit Trusts
30
Corporate Limited Partnerships
30
Public Trading Trusts
30
Strata Title Bodies Corporate
30
1
In the 2012/13 Federal Budget, the Government announced that the company tax rate will not be reduced to 29% (as was
announced in the 2011/12 Federal Budget).
Non-profit Company Tax Rates
Taxable Income
$
0 – 416
417 – 915
916+
Rate
%
Nil
55% of excess over $416
30% of the entire amount