The Government has introduced the third tranche of its earlier commitment for reductions in personal income tax rates from 1 July 2010. Personal income tax rates which apply for the 2010/11 financial year are:
From 1st July 2010 -
| Taxable Income ($) | Tax Rate (%) |
| 0 – 6000 | 0 |
| 6001 – 37,000 | 15c for each $1 over $6,001 |
| 37,001 – 80,000 | $4,650 plus 30c for each $1 over $37,001 |
| 80,001 – 180,000 | $17,550 plus 37c for each $1 over $80,001 |
| 180,001+ | $54,550 plus 45c for each $1 over 180,001 |
• In addition, there is a Medicare Levy payable of 1.5% plus a Medicare Levy Surcharge may apply.
• There is no change to the corporate tax rate in 2010/11 – continues at 30% (however, changes are planned for small business from 2012/13).
• Superannuation Contribution Tax – continues at 15%.
• Superannuation Funds Tax – continues at 15%.
Medicare Low Level Income Threshhold will be increased to:
• $18,488 for single people
• $31,196 for couples
The additional amount of threshold for each dependent child or student will be $2,865.
The Medicare low level income threshold for pensioners below pension age will be increased to $27,697.
The Federal Treasurer, Mr Wayne Swan, presented the Rudd Government’s budget on 11th May 2010. The Treasurer indicated the budget was a “no frills budget” and it was. This series of posts incorporates a summary of matters within the Federal Budget, the Henry Review and other initiatives that have commenced in 2010 that may affect SME operators. Other than those items which have already commenced in 2010, none of the items contained within the budget, nor the Henry Committee Review, will become law until the budget and the various Henry Committee Review recommendations have been passed by the House of Representatives and the Senate, and signed by the Executive Council.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
Christie has written 799 awesome articles for us at Alan Lewis Accountants – BLOG
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