Australian Tax Rates 2013–14

Part of the Tax for Australians For Dummies Cheat Sheet

For resident individuals in Australia, tax is levied on worldwide income on a progressive basis, referred to as marginal tax rates. Your marginal tax rates (shown in the following table) can vary between 0 per cent and 45 per cent. The more income you earn, the greater the amount of tax you’re liable to pay.

Marginal Tax Rates 2013–14
Taxable Income Marginal Tax Rate
First $18,200 nil
$18,200–$37,000 19%
$37,001–$80,000 32.5%
$80,001–$180,000 37%
Over $180,000 45%

A company is a separate legal entity and the company tax rate is 30 per cent.

The Medicare levy is used to help fund the Australian health system and the rate is 1.5 per cent of your taxable income. The Medicare levy surcharge applies if you don’t have private health insurance and taxable income is above the following thresholds:

  • Single person $88,000

  • Couples/families $176,000

The Medicare levy surcharge increases (in stages) to 1.5 per cent if you’re an individual earning more than $136,000, or couples/families earning more than $272,000.

The family threshold for the Medicare levy surcharge increases by $1,500 for each dependent child after the first child.

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Tax for Australians For Dummies Cheat Sheet