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Key tax and superannuation thresholds

Resident marginal tax rates

Section: 3.1

Resident individuals - 2016/17 (Proposed)

Income Rate
$0 - $18,200 0%
$18,201 - $37,000 19% over $18,200
$37,001 - $87,000 $3,572 + 32.5% over $37,000
$87,001 - $180,000 $19,822 + 37% over $87,000
$180,001+ $54,232 + 47%1 over $180,000

Resident individuals - 2016/2017

Income Rate
$0 - $18,200 0%
$18,201 - $37,000 19% over $18,200
$37,001 - $80,000 $3,572 + 32.5% over $37,000
$80,001 - $180,000 $17,547 + 37% over $80,000
$180,001+ $54,547 + 47%1 over $180,000

Note: Rates include Medicare levy of 2% for residents.

1 Includes Temporary budget repair levy of 2% until 30 June 2017

Non resident individuals - 2016/17 (Proposed)

Income Rate
$0 - $87,000 32.5%
$80,001 - $180,000 $28,275 + 37% over $87,000
$180,001+ $62,685 + 47%1 over $180,000

Non-residents individuals - 2016/17

Income Rate
$0 - $80,000 32.5%
$80,001 - $180,000 $26,000 + 37% over $80,000
$180,001+ $63,000 + 47%1 over $180,000

Temporary budget repair levy applies to taxable income above $180,000

A temporary budget repair levy will apply to clients with taxable income above $180,000 for the 2015-16 or 2016-17 financial year. In effect, the levy
increases the top marginal income tax rate by 2% during this time.

The levy is calculated as 2% of taxable income exceeding $180,000, so for example a taxable income of $200,000 would incur a $400 levy ($20,000 x 2%).

Amounts of taxable income that are subject to a tax offset that caps taxation at concessional rates will not be subject to this levy, nor will they cause other taxable
income to be subject to the levy as they are deemed to form the top 'slice' of income.

These amounts include:

  • The taxable component of superannuation lump sums received within the low rate cap or untaxed plan cap.
  • The taxable component of superannuation death benefits received by a beneficiary who is not a death benefits dependant.
  • The taxable component of employment termination payments to which a concessional rate of tax applies (for example, amounts within both the ETP cap and whole of income cap).

For anti-avoidance purposes, most other tax rates based on the top marginal income tax rate have been increased during the period of this levy and in the case of the FBT rate, from 1 April 2015 to 31 March 2017. However, it appears that superannuation lump sum withdrawals above the untaxed plan cap (see section 10.1) and employment termination payments to which no concessional tax treatment applies will not be impacted by, or subject to, this levy.

Last modified: Tuesday, May 2, 2017