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Tax Rates

The following information is a very useful reference source for small businesses:

Click on your selection:

Resident Individual Rates
Reasonable Travel Allowance Claims Within Australia
Reasonable Overseas Travel Allowance Claims
Goods Taken from Stock for Private Use by Business Owners 
Company Tax Rates
PAYG Withholding Calculator
FBT Car Calculator
Motor Vehicle Depreciation Cost-Limit
Per Kilometre Motor Vehicle Rates
Taxation of Complying Superannuation Funds
Concessional Superannuation Contribution Limits 
Other Superannuation Thresholds for 2016/17 
GST Thresholds

 

Resident Individual Rates for 2016/17                                             Resident Individual Rates for 2014/15 and 2015/16       

Taxable Income

Tax on this income

Taxable Income

Tax on this income

0 - $18,200

Nil

0 - $18,200

Nil

$18,201 - $37,000

19c for each $1 over $18,200

$18,201 - $37,000

19c for each $1 over $18,200

$37,001 - $87,000

$3,572 plus 32.5c for each $1 over $37,000

$37,001 - $80,000

$3,572 plus 32.5c for each $1 over $37,000

$87,001- $180,000

$19,822 plus 37c for each $1 over $87,000

$80,001- $180,000

$17,547 plus 37c for each $1 over $80,000

Over $180,000

$54,232 plus 47c for each $1 over $180,000

Over $180,000

$54,547 plus 47c for each $1 over $180,000

Resident Individual Rates for 2012/13 and 2013/14                     Resident Individual Rates for 2010/11 and 2011/12

Taxable Income

Tax on this income

Taxable Income

Tax on this income

0 - $18,200

Nil

0 - $6,000

Nil

$18,201 - $37,000

19c for each $1 over $18,200

$6,001 - $37,000

15c for each $1 over $6,000

$37,001 - $80,000

$3,572 plus 32.5c for each $1 over $37,000

$37,001 - $80,000

$4,650 plus 30c for each $1 over $37,000

$80,001- $180,000

$17,547 plus 37c for each $1 over $80,000

$80,001- $180,000

$17,550 plus 37c for each $1 over $80,000

Over $180,000

$54,547 plus 45c for each $1 over $180,000

Over $180,000

$54,550 plus 45c for each $1 over $180,000

Resident Individual Rates for 2009/10                                              Resident Individual Rates for 2008/09

Taxable Income

Tax on this income

Taxable Income

Tax on this income

0 - $6,000

Nil

0 - $6,000

Nil

$6,001 - $35,000

15c for each $1 over $6,000

$6,001 - $34,000

15c for each $1 over $6,000

$35,001 - $80,000

$4,350 plus 30c for each $1 over $35,000

$34,001 - $80,000

$4,200 plus 30c for each $1 over $34,000

$80,001- $180,000

$17,850 plus 38c for each $1 over $80,000

$80,001- $180,000

$18,000 plus 40c for each $1 over $80,000

Over $180,000

$55,850 plus 45c for each $1 over $180,000

Over $180,000

$58,000 plus 45c for each $1 over $180,000

Notes on tax rates

- The changes to the 2016/17 rates are not yet law. 

- Taxable income includes capital gains.

- The medicare levy imposed at the rate of 2% of taxable income from 1 July 2014 (previously 1.5%) is not included.

- The 2% temporary budget repair levy which applies where taxable income exceeds $180,000 is included in the 2015/16 to 2016/17 rates.

- 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.

Reasonable Travel Allowance Claims Within Australia

Where an employee, company director, or office holder receives an allowance for travel costs within Australia and the person makes a claim for the costs of accommodation, food, drink and incidental expenses up to certain limits, then the person is not required to keep written evidence (i.e. receipts) of the expenses. These deduction limits are based on the salary of the person and the destination of the trip.

The travel must be for business purposes and the person must be sleeping away from home. Note this concession does not apply to self employed persons, including partners in a partnership.

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2016/17.

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2015/16.

Reasonable Overseas Travel Allowance Claims

Where an employee, company director, or office holder receives an allowance for travel costs outside of Australia and the person makes a claim for the costs of food, drink and incidental expenses up to certain limits, then the person is not required to keep written evidence (i.e. receipts) of the expenses. These deduction limits are based on the salary of the person and the destination of the trip. Note the person is still required to keep receipts for accommodation expenses.

The travel must be for business purposes. Note this concession does not apply to self employed persons, including partners in a partnership.

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2016/17.

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2015/16.

Goods Taken from Stock for Private Use by Business Owners

The ATO each year issues a Determination which outlines the amounts that are acceptable as estimates of the value of goods taken from trading stock for private use by business owners (including their associates) in certain industries who operate as sole traders or in partnership. The relevant amounts need to be included in the assessable income of the individual for the year.

Note that an adjustment for the GST credits claimed in relation to these amounts also needs to be made.

Fringe benefits tax and a different set of valuation rules apply where the business owner is employed through a company or family trust.

Click here and then scroll down to access the acceptable amounts for 2015/16.

Click here and then scroll down to access the acceptable amounts for 2014/15.

Company Tax Rates

The company tax rate for the 2015/16 year is 30%.

For the 2015/16 year, the company tax rate for small businesses (having an aggregated annual turnover of under $2M), is reduced to 28.5%.

Subject to becoming law, the following changes will apply from 1 July 2016:

- for the 2016/17 year, the small business company tax rate will be reduced to 27.5% and this rate will apply to companies with an aggregated annual turnover of less than $10M.

- the turnover threshold will then be progessively increased to ultimately have ALL companies eligible for the 27.5% tax rate in the 2023/24 year. The progressive increase in annual aggregated turnover thresholds for companies eleigible for the 27.5% tax rate will be as follows:

  • $25M in the 2017/18 year;
  • $50M in the 2018/19 year;
  • $100M in the 2019/20 year;
  • $250M in the 2020/21 year;
  • $500M in the 2021/22 year; and
  • 1B in the 2022/23 year 

- in the 2024/25 year, the tax rate for ALL companies will be reduced to 27% and then reduced pregressively by 1 percentage point until it reaches 25% in the 2026/27 year.

Notes

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.

PAYG Withholding Calculator

This calculator is provided by the Australian Taxation Office and determines the PAYG Withholding for an employee who is paid either weekly, fortnightly or monthly.

Click here to access the calculator.

Fringe Benefits Tax (FBT) Car Calculator

This FBT car calculator is provided by the Australian Taxation Office and determines the taxable value of a car fringe benefit using either the statutory formula method or the operating cost method.

The base value of a car under the statutory formula method is the GST inclusive cost, including dealer and delivery charges and non-business accessories (e.g. air conditioning and stereo). Registration and stamp duty on transfer are excluded. Note the base value of the car can be reduced by one third after the car has been held for four full FBT years. For example if a car was purchased on 15 April 1998 (i.e. in the 1999 FBT year), the base value would be reduced by one third at the commencement of the 2004 FBT year (i.e. from 1 April 2003) and future FBT years.

When using the operating cost method all costs are inclusive of GST. Deemed operating costs refer to deemed depreciation and interest and are both calculated in much the same way as depreciation using the relevant car depreciation rate and statutory interest rate. Deemed operating costs only apply if the car is owned (including on hire purchase) and not leased. The cost of the car upon which these deemed costs are calculated is inclusive of GST.

Click here to access the calculator.

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 Limit
$

2009

57,180

2010

57,180

2011

57,466

2012

57,466

2013

57,466

2014

57,466

2015

57,466

2016

57,466

2017

57,581

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 as follows:

Engine Capacity
(non-rotary engine)

Engine capacity
(rotary engine)

Rate per Kilometre (cents)

2009/10 year

2010/11 year

2011/12 year

2012/13 year

2013/14 year

2014/15 year

Up to 1,600cc

Up to 800cc

63

63

63

63

65

65

1,601 to 2,600cc

801 to 1,300cc

74

74

74

74

76

76

Over 2,600cc

Over 1,300cc

75

75

75

75

77

77

2015/16 year

The above three rates based on engine size of the car have been replaced with a single rate rate of 66 cents per kilometre for the 2015/16 year. This rate will be updated by the ATO each year.    

Taxation of Complying Superannuation Funds

Superannuation funds are taxed a rate of 15% on taxable income which includes employer contributions and the deductible portion of self employed contributions. Funds are entitled to a one-third discount on the disposal of assets that are held for at least 12 months and are also entitled to a refund of imputation credits that exceed the tax payable.

Income tax is not payable by the fund on income and capital gains where pensions are paid to the members.

Subject to becoming law, the following changes will apply from 1 July 2017:

- the tax exemption for assets supporting a transition to retirement income stream (TRIS) will be removed. This change will apply irrespective of when the TRIS commenced.

- there will be a $1.6 million cap on the amount of superannuation benefits that an individual can have in pension phase which is not subject to tax. The excess over this amount will need to be maintained in an accumulation phase account where earnings are taxed at the rate of 15%  

Concessional Superannuation Contribution Limits

The concessional superannuation limits for the 2016/17 year based on a person’s age are as follows:
 
- age 49 and over on 30 June 2015      - $35,000 contribution limit
- age 48 and under on 30 June 2015    - $30,000 contribution limit
 
Note that super guarantee contributions and salary sacrifice contributions are included in these contribution limits.
 
Individuals earning more than $300,000 will pay an additional 15% contributions tax on their concessional contributions.
 
Subject to becoming law, the following changes will apply from 1 July 2017:  
 
- there will be a single annual concessional contributions cap of $25,000 for all individuals.
- the work test that currently applies to individuals aged 65 to 74 will be removed.
- all individuals under age 75 will be entitled to claim a tax deduction for personal superannuation contributions.
- the threshold at which high income earners pay additional contributions tax of 15% will be lowered from $300,000 to $250,000.

Other Superannuation Thresholds for 2016/17

  • Super guarantee (SG) rate - remains at 9.5% of ordinary times earnings. The next rate rise is due on 1 July 2021 where it will increase to 10% as part of the Government’s initiative to increase the SG rate to 12% by 2025.
  • Capital Gains Small Business contributions cap – increased to $1,415,000 from $1,395,000. The CGT cap amount is the lifetime super contribution limit for proceeds from the disposal of eligible small business assets.
  • Low rate tax cap – remains at $195,000. The low rate cap is the lump sum amount that can be withdrawn tax-free over a lifetime for people that have reached their preservation age, but are not yet 60.
  • Maximum super guarantee contributions base – increased to $50,810 from $49,430 per quarter. Employers don’t have to provide the minimum super support for the part of earnings above this limit.
  • Government Co-Contribution lower income threshold – increased to $36,021, up from $35,454. This is the threshold above which the maximum co-contribution amount of $500 begins to taper.
  • Government Co-Contribution higher income threshold – increased to $51,021, up from $50,454. This is the threshold above which the co-contribution will not be paid.

GST Thresholds

Item

* Threshold

Requirement to issue a tax invoice

$75

No requirement to withhold if supplier does not quote ABN

$75

Turnover for compulsory registration for GST

$75,000
(for any 12 months)

Turnover for compulsory registration for GST (non-profit entity)

$150,000
(for any 12 months)

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

 

Disclaimer

This information is provided as a guide only and is not intended to constitute professional advice. You should obtain appropriate advice concerning your particular circumstances.

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