New Taxation Rates - Which apply to me?
July 2008
Happy financial year from Irish Bentley Lawyers! Australian tax rates have been going through a number of changes. It is always helpful to have a summary and we hope that you find this useful.
Tax rates - Individuals
TAX RATES – INDIVIDUALS Years ended 30 June 2008 and 30 June 2009
RESIDENT TAX RATES 2007 – 2008 | NON-RESIDENTTAX RATES 2007 - 2008 | ||||
| Taxable Income $ | Tax Thereon $ | % Tax on Excess | Taxable Income $ | Tax Thereon $ | % Tax on Excess |
| 6,000 | 0 | 15 | 0 | 0 | 29 |
| 30,000 | 3,600 | 30 | 30,000 | 8,700 | 30 |
| 75,000 | 17,100 | 40 | 75,000 | 22,200 | 40 |
| 150,000 | 47,100 | 45 | 150,000 | 52,220 | 45 |
RESIDENT TAX RATES 2008 – 2009 | NON-RESIDENTTAX RATES 2008 – 2009 | ||||
| Taxable Income $ | Tax Thereon $ | % Tax on Excess | Taxable Income $ | Tax Thereon $ | % Tax on Excess |
| 6,000 | 0 | 15 | 0 | 0 | 29 |
| 34,000 | 4,200 | 30 | 30,000 | 8,700 | 30 |
| 80,000 | 18,000 | 40 | 80,000 | 23,700 | 40 |
| 180,000 | 58,000 | 45 | 180,000 | 63,700 | 45 |
Medicare Levy – 1.5% of taxable income. Not applicable for Non-residents.
Medicare Levy Surcharge – Medicare levy increases by 1% for individuals with taxable income and reportable fringe benefits of more than $100,000 ($150,000 for couples and families) who do not have private patient hospital insurance. The family income threshold is increased by $1,500 for each dependent child after the first. This threshold applies from 1 July 2008.
Tax rates - Children (Residents)
Except for certain person exertion income (e.g. wages), the unearned income of most children (under 18) will be taxed at the following rates (ignoring any low income rebates):
Taxable Income | Tax Payable |
| 0 - $416 | Nil |
| $416 - $1,307 | Nil + 66% of excess over $416 |
| $1,307 and over | 45% of entire amount |
Where a child under 18 years of age earns income from personal exertion (e.g. a part-time job), that income will be subject to the normal individual tax rates.
For 2008/09 a trust distribution of up to $2,667 may be paid to a beneficiary under 18 years of age with no tax being payable on the trust distribution provided the child has no other “unearned income” and the child’s taxable income is less than $34,001. MOTOR VEHICLE DEDUCTIONS
Motor Vehicle Deductions
Cents per kilometre rates for 2007/2008
Conventional Engine | Rotary Engine | Rate/km |
| 0 – 1,600cc | 0 – 800cc | 58.0 |
| 1,601 – 2,600cc | 801 – 1,300cc | 69.0 |
| 2,601cc and over | 1,301cc and over | 70.0 |
These rates are used to claim motor vehicle expenses on a cents per kilometre basis where business kilometres are less than 5,000km, or for travel over 5,000km where the claim is limited to 5,000km. The rates for 2008/2009 were not available at the time of production.
Luxury Cars for 2008/2009
Depreciation limit is $57,123. Leases of cars costing more than $57,123 will be regarded as loans whereby depreciation and interest will be tax deductible rather than lease payments.
HELP/HECS Repayment Thresholds for 2008 and 2009/HECS REPAYMENT THRESHOLDS FOR 2008 AND 2009
HELP repayment income 2007 – 2008 | Percentage rate to be applied to HELP repayment income | HELP repayment income2008 – 2009 | Percentage rate to be applied to HELP repayment income |
| Below $39,825 | Nil | Below $41,595 | Nil |
| $39,825 - $44,360 | 4.0% | $41,595 - $46,333 | 4.0% |
| $44,361 - $48,896 | 4.5% | $46,334 - $51,070 | 4.5% |
| $48,897 - $51,466 | 5.0% | $51,071 - $53,754 | 5.0% |
| $51,467 - $55,322 | 5.5% | $53,755 - $57782 | 5.5% |
| $55,323 - $59,915 | 6.0% | $57,783 – $62,579 | 6.0% |
| $59,916 - $63,068 | 6.5% | $62,580 – $65,873 | 6.5% |
| $63,069 - $69,405 | 7.0% | $65,874 – $74,492 | 7.0% |
| $69,406 - $73,959 | 7.5% | $72,493 – $77,247 | 7.5% |
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