Source: Australian government &

Australian taxation Office

Individual income tax rates
Residents
These rates apply to individuals who are Australian residents for tax purposes.
See also:
Residency what you need to know

Tax rates 201516

The following rates for 201516 apply from 1 July 2015.

Taxable income

Tax on this income

0 $18,200

Nil

$18,201 $37,000

19c for each $1 over $18,200

$37,001 $80,000

$3,572 plus 32.5c for each $1 over $37,000

$80,001 $180,000

$17,547 plus 37c for each $1 over $80,000

$180,001 and over

$54,547 plus 45c for each $1 over $180,000

The above rates do not include the:

Medicare levy of 2%
Temporary Budget Repair Levy; this levy is payable at a rate of 2% for
taxable incomes over $180,000.

Work out your tax residency

To understand your tax situation you first need to work out if you are an
Australian or foreign resident for tax purposes. Use our calculators to:
Determine your residency status coming to Australia
Determine your residency status leaving Australia
The standards we use to determine your tax residency are not the same as
those used by the Department of Immigration and Border Protection for
example, you could be an Australian resident for tax purposes even if you're
not an Australian citizen or permanent resident.
On this page:
Common situations
Tax implications of residency
Examples

Common situations
If you:

you are generally:

leave Australia temporarily and do not set up a

permanent home in another country

an Australian resident for

tax purposes

are an overseas student enrolled in a course

that is more than six months long at an
Australian institution

an Australian resident for

tax purposes

are visiting Australia for more than six months

and for most of that time you live at the same
place, and you either have or establish ties in
the local community

an Australian resident for

tax purposes (see the
example)

are visiting Australia for more than six months,

and for most of that time you are travelling and
working in various locations around Australia

a foreign resident for tax

purposes (see the
example)

are either holidaying in Australia or visiting for

less than six months

a foreign resident for tax

purposes

migrate to Australia and intend to reside here

permanently

an Australian resident for

tax purposes

leave Australia permanently

treated as a foreign
resident for tax purposes
from the date of your
departure

Note: In some cases tax residency will also depend on whether the country you are going to
or coming from has a tax treaty with Australia.

Tax implications of residency

If you're a foreign resident for tax purposes:
You declare on your tax return any income you earned in Australia,
including employment income, rental income, Australian pensions and

annuities, and capital gains on Australian assets. Don't declare foreign

income on your Australia tax return.
If you're an Australian resident for tax purposes:
You generally have to declare all income you earned both in Australia
and internationally on your tax return.
However, if you have a temporary visa you're a temporary resident
this means most of your foreign income is not taxed in Australia and you
don't declare it on your Australian tax return. You only declare income
you derive in Australia, plus any income you earn from employment
performed overseas for short periods while you are a temporary
resident of Australia.

Examples
Example: Foreign resident
Lars lives in Munich and is granted a 12 month working holiday visa. He plans
to return to Munich, and resume his career as a carpenter, after his 12 month
working holiday in Australia.
Lars arrives in August 2011 and has five different jobs while he travels around
Australia, visiting every capital city during his 12 month stay. He stays in no
place for longer than two months.
Lars only works for seven of the 12 months he is in Australia as he is primarily
here to see as much as he can, picking up carpentry work to supplement his
funds as he travels.
Lars is not an Australian resident for tax purposes. Although he is in Australia
for more than six months in the year ended 30 June 2012, he is considered a
foreign resident for tax purposes as his usual home is outside Australia.

Example: Australian resident for tax purposes

Kate is from Ireland and has a working holiday visa. She stayed in Sydney for
most of the 12 months she was in Australia.
Kate had a one week holiday travelling up the east coast just after arriving in
Sydney, and another two week holiday at Byron Bay. She spent the last three
weeks of her stay in Australia travelling around Western Australia.
Kate lived in share accommodation at one location for four weeks in Sydney
and share accommodation at another location in Sydney for ten months.
Kate's name was put on the lease and she made a part contribution to the
bond.
Kate worked in coffee shops and restaurants throughout the whole period she
was in Sydney. Kate joined a library, the Irish club and a water polo club while
staying in Sydney.
Kate's behaviour during the time spent in Australia reflects a degree of
continuity, routine or habit that is consistent with residing here. Kate is
considered to be an Australian resident for tax purposes.

Medicare levy
Medicare gives Australian residents access to health care and is partly funded
by taxpayers who pay a Medicare levy of 2.0% of their taxable income.
The Medicare levy and any reductions are calculated from information
provided in your tax return.

Medicare levy reduction for low-income

earners
Your Medicare levy is reduced if your taxable income is below a certain
threshold and, in some cases, you may not have to pay the levy at all. The

thresholds are higher for seniors. If your taxable income is above the
thresholds, you may still qualify for a reduction based on your family taxable
income.

Can I qualify for a Medicare levy reduction?

You do not have to pay the Medicare levy if your taxable income is equal to or
less than $20,896 ($33,044 for seniors and pensioners).
You will pay only part of the Medicare levy if your taxable income is between
$20,896 and $26,121 ($33,044 and $41,306 for seniors and pensioners).

What if I don't qualify for a Medicare levy reduction?

If you are single with no dependants and your taxable income is over $26,120
($41,305 for seniors and pensioners), you do not qualify for a Medicare levy
reduction.
You may still qualify for a reduction based on your family taxable income.
If you do not qualify for a reduction in the Medicare levy, you may still qualify
for a Medicare levy exemption.

Temporary Budget Repair Levy

As part of the 2014-15 Federal budget the Government introduced a
Temporary Budget Repair Levy.
Individual taxpayers with a taxable income of more than $180,000 per year
will have additional tax withheld by their employer, starting from 1 July 2014.
The levy is payable at a rate of two per cent of each dollar of a taxpayers
taxable income over $180,000.
It will apply to both resident and non-resident individuals from 1 July 2014 and
applies to the 2014-15, 2015-16 and 2016-17 income years.

In some cases the levy is payable even if you have a taxable income of
$180,000 or less. For example, the unearned income of resident individuals
under the age of 18 is subject to special rates and will include additional
amount for the levy on income greater than $416.
The tax tables have been updated so that employers can withhold the
appropriate amount of tax and levy.
The levy will cease to apply from 1 July 2017.

Information for employers

Employers should use the ATOs updated tax tables to calculate the tax to
withhold from their employees pay. Employers using accounting software
should contact the software provider for payroll updates.