What are income tax rates?
With the 2018 tax season approaching on 1 July, many taxpayers are looking for their specific tax rate for the 2017-2018 financial year. Income tax rates 2018 determine how much of your income will be subject to tax.
Read on to find out your tax rate to prepare for the 2018 tax season!
Take a look at these income tax rates for 2018.
For an Australian resident for tax purposes, here are your individual tax rates according to the ATO. Keep in mind, these rates exclude the Medicare levy of 2%.
|0 – $18,200||Tax-free|
|$18,201 – $37,000||19c per $1 over $18,200
|$37,001 – $87,000||$3,572 + 32.5c per $1 over $37,000|
|$87,001 – $180,000||$19,822 + 37c per $1 over $87,000|
|$180,001 and up||$54,232 + 45c per $1 over $180,000|
Now, if you’re a working holidaymaker, this table applies to you regardless of your residency status. As a reminder, working holidaymakers have visa subclasses of 417 (Working Holiday) or 462 (Work and Holiday).
|Working holiday Taxable Income||Tax|
|$0 – $37,000||15c per $1|
|$37,001 – $87,000||$5,550 + 32.5c per $1 over $37,000|
|$87,001 – $180,000||$21,800 + 37c per $1 over $87,000|
|$180,001 and up||$56,210 + 45c per $1 over $180,000|
This table applies to foreign residents for tax purposes. Since you’re a foreign resident, you do not pay the Medicare levy.
|Foreign Resident Taxable Income||Tax|
|0 – $87,000||32.5c per $1|
|$87,001 – $180,000||$28,275 + 37c per $1 over $87,000|
|$180,001 and over||$62,685 + 45c per $1 over $180,000|
When do I claim the tax-free threshold?
If you take a look at the tax table, you may notice that your individual taxable income up to $18,200 is tax-free. Luckily, if you’re an Australian resident, the first $18,200 of your yearly income will not be subject to tax. Overall, this means you are part of the tax-free threshold. You may wonder, what if I go over the tax-free threshold? Although you may go over the threshold, you simply pay tax on the extra income. Therefore, the first $18,200 is tax-free and you pay tax on your leftover income.
Click here to go to find out more information on how to qualify for the tax-free threshold.
Lodge with E-Lodge!
Now that you’re ahead of the game with the tax rates 2018, keep a look out for when you’ll be able to lodge your 2017-2018 tax return with E-Lodge! Don’t forget, you can still lodge your 2016-2017 tax return by creating an account now!
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