As we head into the new financial year, I’ll be posting some of the most commonly searched for tax titbits… rates, rebates, deductions, etc.
When it comes to personal tax thresholds, the table you will use depends on whether you are considered a “resident for tax purposes” or not.
Resident Individuals
The following apply to residents for tax purposes for the 2009-10 financial year:
|
Taxable Income
|
Tax Payable |
| 0 – 6,000 | Nil |
| 6,001 – 35,000 | 15% of excess over $6,000 |
| 35,001 – 80,000 | $4,350 plus 30% of excess over $35,000 |
| 80,001 – 180,000 | $17,850 plus 38% of excess over $80,000 |
| 180,001+ | $55,850 plus 45% of excess over $180,000 |
* Please note that the above table does not include the Medicare Levy of 1.5%.
**The tax-free threshold may be higher for people eligible for the low income tax offset, the Senior Australians Tax Offset and/or other rebates.
What’s changed?
The 15% upper threshold has increased from $34,000 to $35,000 (this will be bumped to $37,000 next year). The 40% marginal tax rate has been reduced to 38% (further decreasing to 37% next year).
Non-resident Individuals
The following 2009-10 rates apply if you are not a resident for tax purposes for the entire income year:
|
Taxable Income
|
Tax Payable |
| 0 – 35,000 | 29% of the entire amount |
| 35,001 – 80,000 | $10,150 plus 30% of excess over $35,000 |
| 80,001 – 180,000 | $23,650 plus 38% of excess over $80,000 |
| 180,001+ | $61,650 plus 45% of excess over $180,000 |
* Medicare levy is not payable by non-residents.
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
Twitter: @christielewis
{ 3 comments… read them below or add one }
Keep posting stuff like this i really like it
appreciate very much your articles on australian personal income tax. much much clearer than my lousy tax accountant’s explanations
Thank you, Matthew.
I had to smile when reading your comment. I wonder if your tax accountant is aware that their explainations are considered “lousy” by clients.