Marginal tax rates Archives - Advice on Australian Tax Returns & Online Tax Advice on Australian Tax Returns & Online Tax

Tag: Marginal tax rates

Posts Tagged ‘Marginal tax rates’

What are the Income Tax Rates for 2018?

tax rates 2018
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.

Read the rest of this entry »

Australian Tax Rates 2015-2016

Get a head start this year.

The 2016 financial year starts on 1 July 2015 and ends on 30 June 2016. The financial year for tax purposes for individuals starts on 1st July and ends on 30 June of the following year. Why not get ahead of the game and see what to expect for this year? For most of us, our tax rates will remain the same as they were for 2014.

Want a refresher? Keep reading for the 2015-2016 tax rates for Aussie residents and non-residents.

 

Australian tax rates for residents

For residents of Australia, there are several things to keep in mind:

  • tax free threshold will remain at $18,200
  • an additional Temporary Budget Repair Levy of 2% is payable on incomes over $180,000 pa from 1 July 2014 to 30 June, 2017. This increases the highest marginal tax rate to 47%.

 

Below is a table to further show tax rates for 2015-2016 as applied to residents.

Read the rest of this entry »

How to Calculate 2014 Income Tax Rates

The income tax rates for the 2013-2014 financial year have largely remained the same

Thankfully – for the sake of sanity – there have been no changes to the income tax rates or thresholds for the 2013-2014 financial year. That means you should be taxed at the same rate for this financial year as you were last year. If you need to learn how to calculate your 2014 income tax rates, you can do so with the E-Lodge tax calculator! 

Just as a refresher here are the tax rates for residents, nonresidents, and those under 18.

Residents

To see if you qualify as an Australian resident for tax purposes, refer to this article.

Taxable Income

Tax on This Income

$0 – $18,200 Nil
$18,201 – $37,000 19% of everything over $18,200
$37,001 – $80,000 $3,572 plus 32.5% of everything over $37,000
$80,001 – $180,000 $17,547 plus 37% of everything over $80,000
$180,001+ $54,547 plus 47% of everything over $180,000

Note: these rates do not include the 1.5% Medicare levy. Read the rest of this entry »

Budget 2012 Recap: Non-residents & foreign workers in for a tax return surprise

Expats, non-residents and foreign workers sure to see their tax burden grow

For every action, so goes Newton’s third law, we can expect an equal and opposite reaction. The 2012 Australian federal budget introduced last month offers ample corroboration for the continuing validity of this basic principle.

We mentioned in the first part of our budget 2012 recap how low and middle income families would largely benefit from the tax compensation package designed to mitigate the dollars-and-cents impact of the carbon tax on the daily life of every Australian.

It should come as no surprise then that for every winner it seeks to relieve the budget offers its fair share of losers who will see their potential tax liability bloom in the coming financial years.

Crested at the top of that unlucky list are working holidaymakers, non-resident employees, expatriates, and Australians living away from home for work purposes. The new budget goes at their pocket-book in a three-pronged approach that is bound to leave them shell-shocked.

Marginal tax rates:

The first, dramatic change goes into effect on July 1st of this year and strikes at the personal income tax rates currently active for non-residents regardless of whether the income is earned from work in Australia or from rental property they own.

Up to now, those earning less than $37000 have benefited from a relatively less onerous marginal tax rate of 29%.

They will now be corralled with their better remunerated colleagues – those whose income fell above the $37K threshold but below $80000 – and see their earnings taxed at a new 32.5% marginal rate.

Simply put, a working holidaymaker who had earned, say, $20000 last year and paid a total of $5800 in Australian tax – remember that non-residents are not entitled to the tax-free threshold – will now have to fork out $6500, or $700 more than the previous amount. A nice little bump!

Read the rest of this entry »

Budget 2012 Recap: Tax free threshold tripled; Marginal rates go up

Key changes to note before you lodge your 2012 tax return.

As predicted, the introduction of the carbon tax this year will have an immediate impact on the financial situation of the majority of Australians who will begin to file their tax return on July 1st.

The tax on fossil fuel emissions is expected to result in an overall increase in the price of both energy and goods as power producers pass on their increased cost to customers and manufacturers.

To this effect, the Australian Government has announced a number of important tax reforms that are intended to mitigate the added out of pocket burden to the average consumer resulting from the carbon tax implementation.

To start with, the 2012 budget allows for a tripling of the annual statutory tax-free threshold. This is the amount of income under which you are not required to pay any tax. Currently slotted at $6000, it is scheduled to move up to $18,200 on July 1st.

Read the rest of this entry »