KEY TAX RATES AND CALCULATORS

Calculators

Businesses

Individuals

These rates apply to individuals who are residents of Australia for tax purposes (see Residency - overview for more information).

Residents

Tax Rates 2008 - 09

Taxable income	Tax on this income
$1 – $6,000	Nil
$6,001 – $34,000	15c for each $1 over $6,000
$34,001 – $80,000	$4,200 plus 30c for each $1 over $34,000
$80,001 – $180,000	$18,000 plus 40c for each $1 over $80,000
$180,001 and over	$58,000 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 1.5% (read What is the Medicare levy? for more information).

Tax offsets reduce the tax payable. Tax offsets based on taxable income levels apply to a range of circumstances. For more information read About tax offsets.

Tax Rates 2009 - 10

Taxable income	Tax on this income
$1 – $6,000	Nil
$6,001 – $35,000	15c for each $1 over $6,000
$35,001 – $80,000	$4,350 plus 30c for each $1 over $35,000
$80,001 – $180,000	$17,850 plus 38c for each $1 over $80,000
$180,001 and over	$55,850 plus 45c for each $1 over $180,000

Notes on tax rates

Taxable income includes capital gains.
Medicare levy currently 1.5% of taxable income is not included.
Resident individuals are entitled to a refund of imputation credits that exceed the primary tax payable.
Resident individuals are entitled to the 50% discount on the disposal of assets that are held for at least 12 months

Non-residents

If you are a non-resident for the full year, the following rates apply:

Tax Rates 2008 - 09

Taxable income	Tax on this income
$0 – $34,000	29c for each $1
$34,001 – $80,000	$9,860 plus 30c for each $1 over $34,000
$80,001 – $180,000	$23,660 plus 40c for each $1 over $80,000
$180,001 and over	$63,660 plus 45c for each $1 over $180,000

Non-residents are not required to pay the Medicare levy.

Tax Rates 2009 - 10

Taxable income	Tax on this income
$0 – $35,000	29c for each $1
$35,001 – $80,000	$10,150 plus 30c for each $1 over $35,000
$80,001 – $180,000	$23,650 plus 38c for each $1 over $80,000
$180,001 and over	$61,650 plus 45c for each $1 over $180,000

Children

If you are under the age of 18, and receive ‘unearned’ income (for example, investment income), special rates apply. Read Income of individuals under the age of 18.

Companies

The rates of tax for all companies and some associations are as follows :

Year	Rate
2000	36%
2001	34%
2002 onwards	30%

Companies are required to maintain a franking account on a tax paid basis and are not entitled to a refund of imputation credits that exceed the tax payable.

Companies are not entitled to the 50% discount on the disposal of assets that are held for at least 12 months.

Motor Vehicle Depreciation Cost-Limit

Since 1980, the depreciation deduction for cars has been limited by a deemed maximum cost price depending on the year in which the car was acquired.

Income Year	Depreciation Cost
2007	$57,009
2008	$57,123
2009	$57,180
2010	$57,180

Per Kilometre Motor Vehicle Rates

These rates are used by individuals when making a claim for motor vehicle expenses up to a maximum of 5,000 business kilometres. They are also used by employers when reimbursing employees for business use of their vehicles.

The rates are based on the engine size of the car and are presented in the below table.

Engine Capacity (non-rotary engine)	Engine Capacity (rotary engine)	Rate per Kilometre (cents)	Rate per Kilometre (cents)	Rate per Kilometre (cents)
		2006/2007	2007/2008	2008/2009
Up to 1,600cc	Up to 800cc	58	58	63
1,601 to 2,600cc	801 to 1,300cc	69	69	74
Over 2,600cc	Over 1,300cc	70	70	75

Complying Superannuation Funds

Income received, including capital gains and employer contributions and the deductible portion of self employed contributions are taxed at the rate of 15%. Funds are entitled to a refund of imputation credits that exceed the tax payable.

Income tax in not payable on income and capital gains where pensions are paid to the members. A fund is entitled to a one-third discount on the disposal of assets that are held for at least 12 months.

Aged Based Superannuation Contribution Limits - Employers

An employer is allowed a deduction for superannuation contributions made to eligible employees up to their aged based limit. The employee's age is determined at the time of making the contribution or, if more than one contribution is made during the financial year, at the time the final contribution is made.

Income Year	Age 35	Age 35 to 49	Age 50 and Over
2003	$12,651	$35,138	$87,141
2004	$13,233	$36,754	$91,149
2005	$13,934	$38,702	$95,980
2006	$14,603	$40,560	$100,587

From 1 July 2007, the existing aged based limits were abolished and replaced with a single annual contribution limit of $50,000 (with a transitional period for people aged 50 and over).

Aged Based Superannuation Contribution Limits - Self Employed

The maximum deduction allowed for superannuation contributions made by self employed or substantially self employed persons is limited to the first $5,000 of contributions plus 75% of the contributions in excess of $5,000 and the person's aged based limit.

Income Year	Age 35	Age 35 to 49	Age 50 and Over
2003	$15,201	$45,184	$114,521
2004	$15,978	$47,339	$119,866
2005	$16,912	$49,936	$126,307
2006	$17,804	$52,413	$132,449

From 1 July 2007, the self employed can receive full deductibility for their contributions.

Reasonable Benefit Limits

This is the maximum amount of lump sum or pension benefits that are concessionally taxed.

Income Year	Lump Sum	Pension
2003	$562,195	$1,058,742
2004	$588,056	$1,124,384
2005	$619,223	$1,238,440
2006	$648,946	$1,297,886

From 1 July 2007, the Reasonable Benefit Limits were abolished.

GST Thresholds

Item	*Threshold
Requirement to issue tax invoice	$75,000
No requirement to withhold if supplier does not quote ABN	$75,000
Turnover for compulsory registration for GST (non-profit entity)	$150,000
Annual turnover for compulsory use of non-cash accounting	$2,000,000
Annual turnover for compulsory monthly electronic BAS lodgement	$20,000,000

* all amounts are GST exclusive.

Deductible Superannuation Contribution Limits

For the 2009/10 year, the maximum concessional superannuation contributions that can be claimed by an employer or a substantially self employed person is as follows:

Below 50 years of age at 30 June: $25,000 (indexed) - Both employers and substantially self employed persons are entitled to claim a full tax deduction for the entire contributions made.
Age 50 and over at 30 June: $50,000 (unindexed) - This is a transitional measure that applies up to the 2011/12 year, upon which the limit will reduce to the standard $25,000 indexed amount.
Note that contributions above these limits can still be claimed as a full deduction, but will be taxed at an overall effective rate of 46.5%.

Undeducted Superannuation Contribution Limits

For the 2009/10 year, the maximum after-tax contributions that can be made by an individual to a superannuation fund are limited to $150,000 per annum. This amount is fixed at six times the deductible contributions limit of $25,000 and will therefore increase as the $25,000 limit rises with indexation.

Where an individual is under the age of 65 at any time during the income year, there is a 3 year averaging rule whereby the person will be able to utilise the $150,000 cap for the current year and for the next two income years. This means that the person can in effect contribute a maximum of $450,000 as an undeducted contribution during the income year and the subsequent two income years. The $450,000 limit is automatically triggered in an income year where the taxpayer makes an after-tax contribution in excess of $150,000.