Tax, Superannuation & Social Security Rates 2008/2009

or as otherwise stated

See important Disclaimer at the end of this page

 

Residents

These rates apply to individuals who are residents of Australia for tax purposes (see Residency - overview for more information).

Tax rates 2007-08

Taxable income	Tax on this income
$1 – $6,000	Nil
$6,001 – $30,000	15c for each $1 over $6,000
$30,001 – $75,000	$3,600 plus 30c for each $1 over $30,000
$75,001 – $150,000	$17,100 plus 40c for each $1 over $75,000
$150,001 and over	$47,100 plus 45c for each $1 over $150,000

Tax rates 2008-09

Taxable income	Tax on this income
$0 – $6,000	Nil
$6,001 – $34,000	15c for each $1 over $6,000
$34,001 – $80,000	$4,200 plus 30c for each $1 over $34,000
$80,001 – $180,000	$18,000 plus 40c for each $1 over $80,000
$180,001 and over	$58,000 plus 45c for each $1 over $180,000

Tax rates 2009-10

Taxable income	Tax on this income
$0 – $6,000	Nil
$6,001 – $35,000	15c for each $1 over $6,000
$35,001 – $80,000	$4,350 plus 30c for each $1 over $34,000
$80,001 – $180,000	$17,750 plus 40c for each $1 over $80,000
$180,001 and over	$55,850 plus 45c for each $1 over $180,000

, contact us for 10/11 rates & future years rates.

The above rates do not include the Medicare levy of 1.5% (read What is the Medicare levy?for more information).

Tax Offsets reduce the tax payable. Tax offsets based on taxable income levels apply to a range of circumstances. For more information read About tax offsets. Contact us for 09/10 rates & future years rates.

• Ö        Low Income offset – shade out is from $30,000 cutting out at $60,000 (08/09), $63,750 (09/10) max offset $1,200(08/09) $1,350(09/10).
• Ö        Other tax offsets apply to people with dependants, those living in remote areas and those who receive particular types of income or incur particular expenses, Mature Age Worker, Senior Australians Offset, Pensioner Tax Offset.

Family tax Benefit A income thresholds apply up to $91,316 and the benefit ranges from $204.12 per ft to $50.12 per ft depending on age of child. Family Tax Benefit B  under 5 is $133.56 per ft and 5-16 (18 if full time student)  is $93.10 per ft. Means tested less than $150,000 for full benefit, shades out thereafter.

Education Tax Refund Primary $390 and Secondary $779

FHSA – government max contribution $850

Private Health Insurance Rebate - 30% to 40% of premium depending on age of person.

Child Care benefit - $180.00pw $3.60per hour income test applies upper threshold 1 child $131,560. Threshold changes for more children. Where no income test applies the benefit is $30.10 pw or $0.602 per hour.

Spouse Super contribution tax offset two thresholds (contact us for 09/10 rates & future years rates):

1. Spouse earning less than $10,800 offset is: 18% of lower of contributions made or $3,000 ie max offset $540; and

2. Spouse earning between than $13,799 - $10,800 offset is: 18% of lower of contributions made or [$3,000 -(receiving spouse income - $10,800)

 Non Resident

Withholding Tax – Interest 10% (with DTA),Franked Dividends 0%, Unfranked with DTA 15%, Unfranked without DTA 30%, 45% for non resident trustee beneficiaries.

 Other tax rates: Company tax rate 30%, Qualifying Superannuation Fund - Accumulation Phase15%, pension phase 0%, HELP repayments Nil<43,151, 4%<$46,333, scaling up to 8% $77,248, contact us for 09/10 rates & future years rates.

Rates per business kilometre

Engine capacity		Cents per kilometre
Ordinary car	Rotary engine car	2008-09 income year
1600cc (1.6 litre) or less	800cc (0.8 litre) or less	63 cents
1601cc - 2600cc (1.601 litre - 2.6 litre)	801cc - 1300cc (0.801 litre - 1.3 litre)	74 cents
2601cc (2.601 litre) and over	1301cc (1.301 litre) and over	75 cents

Work out the amount you can claim for each car and add up all the amounts. Log book rates can offer a great er deduction, call us to see how it works. FBT car rates can be found under the FBT return checklist.

SUPERANNUATION CONTRIBUTION THRESHOLDS

Employer contributions: Superannuation Guarantee 9 per cent of ordinary time earnings, (maximum salary requiring SG payments is $160,680):

Type of Contribution	Annual Contribution Cap	Excess Contribution Tax
CGT Small Business	$1,100,000 life time limit (15yr or Retirement)
Concessional	$50,000	31.5%
	$100,000 (if over 50 on last day of fin yr)
Non-Concessional	$150,000 or where under 65, $450K bringing fwd 2 yrs.	46.5%
TFN Not Quoted		46.5%

Work out the amount you can claim for each car and add up all the amounts

Government Co contribution - up to $1,000 shades out between $31,920 and $61,920, contact us for 09/10 rates & future years rates.

First Home Saver Accounts - Goverment Co contribution max of $850 account cap $75,000, , contact us for 09/10 rates & future years rates.

Spouse Super contribution tax offset two thresholds (contact us for 09/10 rates & future years rates):

1. Spouse earning less than $10,800 offset is: 18% of lower of contributions made or $3,000 ie max offset $540; and

2. Spouse earning between than $13,799 - $10,800 offset is: 18% of lower of contributions made or [$3,000 -(receiving spouse income - $10,800)

Minimum Annual Pension Payments (once pension commenced)

Age	Minimum % Withdrawal
Under 55	4
65-74	5
75-79	6
80-84	7
85-89	9
90-94	11
95 or more	14

 

PRESERVATION RULES

Except in case of death superannuation savings may remain in accumulation phase indefinetley.

• ·        Unrestricted unpreserved - funds can be accessed any time
• ·        Retirement (after preservation age, retirement defined as trustee is satisfied member never to be employed more than 10 hrs per week)
• ·        Termination of Employment after 60
• ·        Attaining age 65
• ·        Attaining age preservation age - limited cashing only as a TTR (commenced 1.7.07) or non commutable income stream
• ·        Permanent incapacity, compassionate grounds, death, financial hardship for 6months consecutively
• ·        Upon departure for certain temporary residents

CONTRIBUTION ELIGIBILITY - ACCUMULATION PHASE:

• ·        65 and under – no work test, TFN required, for member and spouse
• ·        65 - 69  work test (min 40hours in 30 day period) for member and spouse
• ·        70 - 74 work test (min 40hours in 30 day period) for member, spouse not eligible
• ·        75+ note eligible for member or spouse.

Increase to preservation ages for retirement:

Date Of Birth	Preservation Age
Before 01/07/1960	55
1/07/60-30/06/61	56
1/07/61-30/06/62	57
1/07/62-30/06/63	58
1/07/63-30/06/64	59
1/07/64 or after	60

ETP THRESHOLDS

ETP Component	Amount included	Maximum rate of tax (includes Medicare levy)
Post June 1994 invalidity component	Nil	N/A
Taxable Under preservation age up to $150,000	100%	30%
Taxable under preservation age over $150,000	100%	45%
Taxable over preservation up to $150,000	100%	15%
Taxable over preservation age over $150,000	100%	45%
Transitional ETP’s also apply up to 2012 for contracts before 10.05.06
Annual to 17.08.93 (after normal rates apply) LSL 16/8/78 to 17.8.93	100% 100%	30% 30%

TRANSITIONAL TERMINATION PAYMENTS

Apply until 30.06.12 to individuals under a qualifying contract in place before 10.05.06. Given these circumstances do not arise often in our current client base, call us to understand how these rules work if they do apply to you.

LUMP SUM BENEFITS

Taxed Scheme	Tax Treatment
Under 55 non assessable non exempt income	20%+medicare
55-59	0% up to $150,000 15% above $150,000
60 and over Non Assessable non exempt income	Nil
Untaxed Scheme
Under 55 up to $1,045,000                 Over $1,045,000	30% 45%
55  - 59  up to $145,000                 $145,000 - $1,045,000                 Over $1,045,000	15% 30% 45%
60 and over up to $1,045,000                 Over $1,045,000	15% 45%

 

LUMP SUM DEATH BENEFITS

Dependent – Nil

Non Dependent taxed element 15% untaxed element 30%, (See special rules for lump sum death benefit pension payments)

 LIFE EXPECTANCY-200-2002, For income streams commencing from 1/1/05. From 20/09/04 for complying fixed term, or term allocated or to determine the maximum guarantee period for complying life time income streams. Please call us for current rates

Age	M	F	Age	M	F	Age	M	F
50	30.39	34.51	65	17.7	21.15	80	8.24	9.98
55	25.92	29.91	70	14.08	17.08	85	6.11	7.28
60	21.66	25.44	75	10.9	13.33	90	4.74	5.33

Note the years in between are not noted, please call us if you require it.

TAXED SCHEME - SUPERANNUATION PENSION PHASE TAX RATES

Age	Tax free Component	Taxable Component - Element Taxed
Under 55	Non - assessable non-exempt income	Marginal tax Rate (less 15% if disability benefit)
55-59	Non - assessable non-exempt income	Marginal tax Rate (less 15% tax offset)
60+	Non Assessable	Non Exempt Income

UNTAXED SCHEME - SUPERANNUATION PENSION PHASE TAX RATES

Age	Tax free Component	Taxable Component - Element Taxed
Under 60	Non - assessable non-exempt income	Marginal tax Rate
+60	Non - assessable non-exempt income	Marginal tax Rate (less 10% tax offset)

 

ACCOUNT BASED PENSIONS - MINIMUM PERCENTAGE FACTORS

Age	Min Pyt % Bal
Under 65	4
65-74	5
75-79	6
80-84	7
85-89	9
90-94	11
95+	14

AGE PENSION

Effective 20 March 2009 (revised quarterly)

Basic rate (per fortnight)
Single	$569.80 (each) ex pharmacy allow
Couple (each)	$475.90 (each) ex pharmacy allow

Note: Income test figures higher for pensioners with children or who pay private rent.

	Allowable income	Allowable assets
		Lower limit	Upper limit
Single, homeowner	Up to $3,692pa full phases out to $41,119pa	$178,000	$562,000
Single, non-homeowner		$307,000	$691,000
Couple, homeowner	Up to $6,448pa full phases out to $68,705pa	$252,500	$891,500
Couple, non homeowner		$381,500	$1,020,500

Note: For full payments, per fortnight. These amounts are higher for pensioners who pay private rent.

Deeming rates for investments 2% for first $41,000 fort singles $70,000 couples)

3% for balance over these amounts.

Page last updated: August 2009

 

DISCLAIMER: The information contained in this publication is current at the date of printing (13 August 2008).  Whilst all care has been taken in its preparation, Mercia accepts no liability for actions taken on the basis of information in this publication nor for any error in, or omission from, the publication. Changes may have occurred resulting in this information being out of date, consequently this information should not be relied upon in making decisions, and as a result Mercia disclaims any liability arising from any decisions made relying upon information contained on this page and website.