In Australia, the tax system is structured progressively, meaning higher income levels are taxed at higher rates. Taxes apply to individuals, businesses, and specific transactions. Below is a breakdown of the key tax rates for individuals and businesses in Australia.
How much is tax in Australia percentage
Table of Contents
Individual Income Tax Rates for Residents
| Taxable Income | Tax Rate | Details |
|---|---|---|
| $0 – $18,200 | 0% (Tax-free threshold) | No tax payable. |
| $18,201 – $45,000 | 19% | 19 cents for each $1 over $18,200. |
| $45,001 – $120,000 | 32.5% | 32.5 cents for each $1 over $45,000. |
| $120,001 – $180,000 | 37% | 37 cents for each $1 over $120,000. |
| $180,001 and above | 45% | 45 cents for each $1 over $180,000. |
Individual Income Tax Rates for Non-Residents (2023-2024)
| Taxable Income | Tax Rate | Details |
|---|---|---|
| $0 – $45,000 | 32.5% | No tax-free threshold available for non-residents. |
| $45,001 – $120,000 | 32.5% | 32.5 cents for each $1 over $45,000. |
| $120,001 – $180,000 | 37% | 37 cents for each $1 over $120,000. |
| $180,001 and above | 45% | 45 cents for each $1 over $180,000. |
Medicare Levy
| Income Thresholds | Levy Rate | Details |
|---|---|---|
| $0 – $24,276 (single, no dependents) | 0% | No Medicare levy if income is below the threshold. |
| Above threshold | 2% | 2% of taxable income. |
Note: Reductions or exemptions may apply for low-income earners or those with special circumstances.
Capital Gains Tax (CGT)
| Category | Tax Treatment | Details |
|---|---|---|
| Individual | Marginal tax rate | Applies to profits from selling assets like property, shares, or crypto. |
| Discount for Individuals | 50% discount for assets held >1 year | Applicable only to Australian residents. |
| Non-residents | No discount available | Full tax applies regardless of holding period. |
Company Tax Rates
| Company Type | Tax Rate | Details |
|---|---|---|
| Base Rate Entities | 25% | Companies with aggregated turnover < $50 million and 80% passive income. |
| All Other Companies | 30% | Standard rate for companies not eligible for the lower rate. |
Goods and Services Tax (GST)
| GST Component | Rate | Details |
|---|---|---|
| Standard GST Rate | 10% | Applies to most goods and services in Australia. |
| Exemptions | 0% | Basic foods, education, health services, and exports. |
Superannuation Contributions Tax
| Category | Tax Rate | Details |
|---|---|---|
| Concessional Contributions | 15% | Includes employer contributions and salary-sacrificed contributions. |
| High-Income Earners (> $250,000) | 30% | Additional tax applies to concessional contributions. |
| Non-Concessional Contributions | 0% | Taxed as part of post-tax income, subject to annual caps. |
Fringe Benefits Tax (FBT)
| Category | Tax Rate | Details |
|---|---|---|
| Standard Rate | 47% | Paid by employers on the value of fringe benefits provided to employees. |
Excise Duties
| Product | Tax Rate | Details |
|---|---|---|
| Alcohol | Varies by type | Calculated based on alcohol volume; updated biannually. |
| Tobacco | $1.186 per cigarette or $1,486.05 per kg | Based on quantity and reviewed biannually. |
| Fuel | $0.481 per litre | Indexed biannually to the Consumer Price Index (CPI). |
Payroll Tax
| State/Territory | Tax Rate | Thresholds |
|---|---|---|
| New South Wales (NSW) | 4.85% | Threshold: $1.2 million. |
| Victoria | 4.85% | Threshold: $700,000. |
| Queensland | 4.75% | Threshold: $1.3 million. |
| Western Australia | 5.5% | Threshold: $1 million. |
| South Australia | 4.95% | Threshold: $1.5 million. |
| Tasmania | 4% | Threshold: $1.25 million. |
| Australian Capital Territory | 6.85% | Threshold: $2 million. |
| Northern Territory | 5.5% | Threshold: $1.5 million. |
How much is tax in Australia percentage FAQs
1. What is the highest income tax rate in Australia?
The highest income tax rate is 45%, applied to individuals earning over $180,000 annually.
2. Do I have to pay GST on everything I buy?
No, GST is not charged on exempt items such as basic foods, education, health services, and exports.
3. How is cryptocurrency taxed in Australia?
Cryptocurrency is subject to Capital Gains Tax (CGT). Gains from selling crypto are taxed at your marginal income tax rate, with a 50% discount if held for more than a year (for residents).
4. Are there tax deductions available for low-income earners?
Yes, low-income earners may be eligible for tax offsets, such as the Low-Income Tax Offset (LITO) and the Low and Middle-Income Tax Offset (LMITO).
5. What is the Medicare levy in Australia?
The Medicare levy is 2% of your taxable income, with reductions or exemptions for low-income earners and specific cases.
6. How are capital gains calculated?
Capital gains are calculated as the difference between the sale price of an asset and its cost base. Discounts may apply for assets held longer than 12 months.
7. What is the corporate tax rate in Australia?
The corporate tax rate is 30% for most companies and 25% for base rate entities with a turnover below $50 million.
8. Are superannuation contributions taxed?
Yes, concessional contributions are taxed at 15%, with an additional tax for high-income earners exceeding $250,000 annually.