2017/18 Tax rate for Australian Tax Residents
| Taxable Income | Tax on the income |
| 0 – $18,200 | Nil |
| $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 |
| $87,001 – $180,000 | $19,822 plus 37c for each $1 over $87,000 |
| $180,001 and above | $54,232 plus 45c for each $1 over $180,000 |
The above rates do not include the Medicare levy of 2%.
The temporary budget repair levy ceased applying from 1 July 2017.
2017/18 Tax rate for Foreign Residents
Taxable Income | Tax on the income |
0 – $87,000 | 32.5c for each $1 |
$87,001 – $180,000 | $28,275 plus 37c for each $1 over $87,000 |
$180,001 and above | $62,685 plus 45c for each $1 over $180,000 |
Foreign residents are not required to pay the Medicare levy.
2018/19 Tax rate for Australian Tax Residents
| Taxable Income | Tax on the income |
| 0 – $18,200 | Nil |
| $18,201 – $37,000 | 19c for each $1 over $18,200 |
| $37,001 – $90,000 | $3,572 plus 32.5c for each $1 over $37,000 |
| $90,001 – $180,000 | $20,797 plus 37c for each $1 over $90,000 |
| $180,001 and above | $54,097 plus 45c for each $1 over $180,000 |
The above rates do not include the Medicare levy of 2%.
The above rates include changes announced in the 2018-19 Federal Budget.
2018/19 Tax rate for Foreign Residents
Taxable Income | Tax on the income |
0 – $90,000 | 32.5c for each $1 |
$90,001 – $180,000 | $29,250 plus 37c for each $1 over $90,000 |
$180,001 and above | $62,550 plus 45c for each $1 over $180,000 |
The above rates include changes announced in the 2018-19 Federal Budget.
2018 Tax Updates for Individual
Travel costs such as accommodation, meals, taxi fares and travel insurance, incurred in connection with managing your tax affairs are generally deductible, provided the SOLE PURPOSE of the trip was to meet with a recognised tax adviser for the purpose of managing your tax affairs. Otherwise, apportionment may be required. If meeting with the recognised tax adviser was only incidental to your trip, rather than the sole or the main purpose, your travel cost deductions maybe limited.
For taxpayers using the “cents per kilometre” method, any car travel expenses to visit a recognised tax adviser is now included in the 5,000 business kilometres limit.
Most taxpayers under 75 years old (including those aged 65 to 74 who meet the work test) can now claim a deduction for personal super contributions regardless of their employment arrangement (subject to other conditions). From 1 July 2017, the 10% test condition was removed for the 2017-18 and future financial years.
An employee with income of more than $250,000 from 1 July 2017 will be subject to an additional 15% tax on concessional contribution under Division 293 of the ITAA 1997, which will generally result in an overall tax of 30% being payable in respect of concessional contribution in these circumstances.
The temporary budget repair levy of 2% has finished and no longer applied for the 2017/18 income year.
ATO now allows travel claims (e.g. travel, accommodation & meal expenses) in “Special demands travel” and “Co-existing work locations travel” with certain conditions attached.
From 1 July 2017, travel expenses (e.g. travel related to inspecting or maintaining of a rental property) relating to a residential investment property used for residential accommodation purpose would no longer be deductible, irrespective of when the property was acquired.
- From 1 July 2017, taxpayers can no longer claim depreciation of second-hand plant and equipment in rental properties used for residential accommodation where those second-hand plant and equipment were acquired on or after 7.30pm on 9 May 2017.
Additionally, taxpayers cannot claim plant and equipment installed on or after 1 July 2017 if they have used it for a private purpose. If those assets were acquired before the start date, and it was used (or installed ready for use) for any purpose during the 2017 financial year or an earlier year, and where no depreciation deduction was available in those year, the new restriction would still apply to deny the depreciation.
The CGT main residence exemption for foreign resident for dwellings disposed of from 7:30 PM (AEST) on 9th MAY 2017 was removed. However, transitional rule would apply for dwellings ACQUAIRED BEFORE THIS TIME AND DISPOSED OF ON OR BEFORE 30th JUNE 2019.
Foreign resident capital gains withholding rate for contracts entered into on or after 1st July 2017 has changed. A 12.5% withholding will apply to the disposal of:-
taxable Australian real property with a market value of $750,000 or above;
an indirect Australian real property interest;
an option or right to acquire such property or interest.
Some areas relating to individual in which the ATO is targeting for 2018.
- Increased data matching programs,
Work related expenses, including those work-related expenses that are $ 300 or less;
Airbnb operators;
Lump sum payment received by medical practitioners from healthcare clinics;
CGT main residence exemptions for income producing dwellings
Disclaimer:
The above notes are general information only. They do not constitute tax or financial advices in any way, nor are they intended to. For further information, please visit www.ato.gov.au or contact us on (07) 37115595.
