The facts and figures outlined in this tax rate summary are current as at 1 January 2017.
| Residents* – year ending 30 June 2017 | ||
|---|---|---|
| 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 2017, 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 2017 | ||
|---|---|---|
| Taxable income ($) | Tax** ($) | % on excess |
| 0 | Nil | 32.5 |
| 87,000 | 28,275 | 37 |
| 180,000 | 62,685 | 45 |
For the period 1 July 2014 to 30 June 2017, a Temporary Budget Repair levy of 2% will apply to the taxable income of both residents and non-resident individuals in excess of $180,000.
* Special rates apply to unearned income of children aged under 18 years at year end where that income is more than $416.
** These amounts do not include the Medicare levy and surcharge, the Temporary Budget Repair levy or any tax offsets that may be available.
| Medicare levy surcharge (singles) – year ending 30 June 2017 | |
|---|---|
| Income for surcharge purposes^ ($) | 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 2017 | |
|---|---|
| Income for surcharge purposes^# ($) | Surcharge rate (%) |
| 180,000 or less | 0.00 |
| 180,001 – 210,000 | 1.00 |
| 210,001 – 280,000 | 1.25 |
| More than 280,000 | 1.50 |
| For premiums paid between 1 April 2016 and 31 March 2017* | |||
|---|---|---|---|
| Singles | |||
| Income for surcharge purposes^ ($) | Rebate (%) | ||
| Less than 65 years of age | Age 65 to 69 years | Age 70 years and over | |
| 90,000 or less | 26.791 | 31.256 | 35.722 |
| 90,001 – 105,000 | 17.861 | 22.326 | 26.791 |
| 105,001 – 140,000 | 8.930 | 13.395 | 17.861 |
| More than 140,000 | 0 | 0 | 0 |
| 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 | 26.791 | 31.256 | 35.722 |
| 180,001 – 210,000 | 17.861 | 22.326 | 26.791 |
| 210,001 – 280,000 | 8.930 | 13.395 | 17.861 |
| 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.
- Company income tax rate (non-small business) — 30%
- Small business company income tax rate — 28.5%*
- Benchmark interest rate for 2016-17 — 5.40%
- Complying superannuation fund tax rate (excluding non-arm’s length component) — 15%
- Complying superannuation fund tax rate (non-arm’s length component) — 47%
- Non-complying superannuation fund tax rate — 47%
- Additional tax payable on concessional contributions of very high income earners* — 15%
| Superannuation contribution caps – year ending 30 June 2017 | |
|---|---|
| Type of superannuation contribution | Contributions cap** |
| Concessional (deductible) | For individuals aged 49 years or over on 30 June 2016 – $35,000 For all other individuals – $30,000 |
| Non-concessional (non-deductible) | $180,000^ |
* Applies to individuals whose combined income for surcharge purposes (excluding reportable superannuation contributions) and concessionally taxed superannuation contributions exceed $300,000 for an 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.
^ People under 65 years of age can currently make non-concessional contributions of up to $540,000 over a three-year period (known as the ‘bringing forward rule’). However, the Government has announced that the $180,000 annual non-concessional contribution limit will be reduced to $100,000 from 1 July 2017. This may impact the total amount that may be contributed over a three-year period under the bringing forward rule. As at 15 November 2016, this measure was not enacted.
Superannuation guarantee charge (SGC)
SGC is payable by employers if during 2016-17 they fail, in relation to each employee, to contribute 9.5% of the employee’s ordinary time earnings (base capped at $51,620 per quarter). Minimum contributions are required to be made on the 28th day following the end of the quarter, otherwise the employer is required to lodge a Superannuation Guarantee (SG) statement and pay any relevant SGC by the 28th day of the second month after the end of the relevant 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 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 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 2017.
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 2016-17 – $57,581.
| State/Territory | Rate (%) | Annual Threshold ($)* |
|---|---|---|
| SA | 4.95 | 600,000 |
| ACT | 6.85 | 2,000,000 |
| VIC | 4.85 | 575,000 |
| QLD | 4.75 | 1,100,000^ |
| TAS | 6.1 | 1,250,000 |
| NSW | 5.45 | 750,000 |
| WA | 5.5 | 850,000** |
| NT | 5.5 | 1,500,000# |
* The above thresholds may be reduced where the company is part of a group and/or pays interstate wages.
^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.
** 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.
| 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.
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.