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Income Tax

Income tax is levied on taxable income. Taxable income is calculated by using the following formula; assessable income less any allowable deductions. Deductions include such things as wages, the cost of stock, rent, bad debts, and previous year losses.

Sole traders are not required to complete a separate return for their business. They use their personal income tax return to report their business income and deductions. Partnerships complete a partnership tax return to show the partnership's income and deductions, and how the profit or loss was shared among the partners. Companies complete a company tax return to calculate the income tax the company should pay.

Individual / Sole Trader:
Income tax is calculated on taxable income, which is the person's assessable income less any allowable deductions.

Resident Individual Income Tax Rates

Resident Tax Rates 2024-2025:

Resident Tax Rates 2021-2024:

Resident Tax Rates 2019-2020:

Resident Tax Rates 2016-2018

Resident Tax Rates 2012 - 2013, 2014, 2015, 2016:

Low Income Tax Offset

Low Income Tax Offset 2012 - 2020:

Taxpayers eligible for the full offset do not pay tax until their annual income exceeds $20,452.

Low Income Tax Offset from 2021:

Taxpayers eligible for the full offset do not pay tax until their annual income exceeds $21,884.

Low and Middle Income Tax Offset

LMITO 2018-19 to 2021-22:

Minor Tax Rates

From 1 July 2011, minors are no longer able to access the Low Income Tax Offset (LITO) to reduce tax payable on unearned income, such as dividends, interest and rent.

This measure does not impact income earned by minors from work. Unearned income of minors, who are orphans or disabled, and compensation payments and inheritances received by minors, are also not impacted.

Resident Minor Tax Rates:

*The tax rates reflect the 2% Temporary Budget Repair levy. This will be applied to the income year's end 30 June 2015 to 30 June 2017 inclusive.

NOTE: Resident tax rates do not include the Medicare levy of 2%. Refer to the Medicare levy section of the ATO website for more information.

Non-Resident Individual Income Tax Rates

Non-Resident Tax Rates 2024-2025:

Non-Resident Tax Rates 2021-2024:

Non-Resident Tax Rates 2019-2020:

Non-Resident Tax Rates 2016-2018:

Non-Resident Minor Tax Rates:

*The tax rates reflect the 2% Temporary Budget Repair levy. This will be applied to the income year's end 30 June 2015 to 30 June 2017 inclusive.

Note: Non-residents are not required to pay the Medicare levy. There is no tax-free threshold. The low income tax offset does not apply.

Partnership:

A partnership that is carrying on a business must complete a partnership tax return to show all income earned and deductions claimed for expenses in the course of carrying on business. Each partner pays tax on their share of the partnership's income. Consequently they must include their individual share of the net partnership profit or loss in their personal tax return.

Company:

A company is a distinct legal entity with its own income tax liability therefore a company tax return must be completed for each company. A company's income tax is calculated as a percentage of the taxable income the company earned during the financial year. The general company tax rate is 30%. The rate for small business entities changed after 1 July 2015.

Small Business Company Tax Rates Schedule:

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