Tax, Superannuation & Social Security Rates

See important Disclaimer at the end of this page

1. 1. Residents
   2. Individual Resident & Non Resident Tax Rates
   3. Company Tax Rates
   4. Family Tax benefit
   5. Income Limit for Maximum Rate of FTB-A
   6. Family Tax Benefit – Part B
   7. Income Limits for FTB-B
   8. School Kids Bonus formally Education Tax Refund
   9. Private Health Insurance Rebate
   10. Child Care Benefit
   11. Spouse Super contribution tax offset two thresholds
   12. Government Co contribution
   13. First Home Saver Accounts
   14. Non Resident
   15. Motor Vehicle Rates per business kilometre
   16. Superannuation Contribution Threshold & Tax Rates
   17. Contribution Caps
   18. Minimum Annual Pension Payments (Once Pension Commenced)
   19. Preservation Rules
   20. Contribution Eligibility & Work Test phase
   21. Preservation Ages for Retirement
   22. ETP Thresholds
   23. Superannuation Lump Sum Benefits
   24. Lump Sum Death Benefits
   25. Life Expectancy 2015 – 2016
   26. Taxed Scheme – Superannuation Pension Phase Tax Rates
   27. Untaxed Scheme – Superannuation Pension Phase Tax Rates
   28. Age pension
   29. Duty on Real Property
   30. Land Tax
   31. Rental/Building Depreciation

1. Residents

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

 2. Individual Resident Tax Rates

Tax rates <2016-2017>

Year ended 30 June 2015/16

The above rates do not include the Medicare levy of 2.0% + 2% (budget repair levy) (read What is the Medicare and Temporary Budget 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.

Non Resident Individual Tax Rates

Non-residents are not required to pay the Medicare levy <See ATO Link>. Other non resident taxes see No14 below:

3. Company Tax Rates

Companies that qualify as a SBE eligible for the SBE rates at 27.5% for 20 June 2017 <Verify with ATO>

Companies that do not qualify as a SBE are at 30% for 20 June 2017

4. Family Tax Benefit – Part A

Note: Includes FTB-A supplement of $726.35 per child after the end of the financial year, once your payments have been balanced.

5. Income Limit for Maximum Rate of FTB-A.

In most cases, your FTB Part A payment is worked out using 2 income tests. They will apply the test that gives you the highest rate of payment.

The first test reduces the maximum rate of FTB Part A by 20 cents for each dollar above $51,027 until your payment reaches the base rate of FTB Part A.

The second test reduces the base rate of FTB Part A by 30 cents for each dollar above $94,316 until your payment reaches nil.

If your family income is close to the annual income limit, you should check your eligibility after the end of the financial year once your actual income is known.

6. Family Tax Benefit – Part B

Payment figures do not include the FTB Part B supplement of $354.05 per family for the 2015–16 financial year. The supplement can only be paid after the end of the financial year.

7. Income Limits for FTB-B

Other rates for over 18’s please refer to http://www.humanservices.gov.au/

8. School Kids Bonus (formally Education Tax Refund)

Helps with education costs and is automatically paid in January and July to eligible families and students. There is no need to make a claim.

From 1 January 2015, eligible families will receive the Schoolkids Bonus in:

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

10. Child Care benefit – These rates are adjusted on 1 July each year, in line with the Consumer Price Index. This means that the rates are different for each financial year.

11. Spouse Super contribution tax offset two thresholds:

1. Spouse earning less than $13,800 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 – $13,800)

12. Government Co contribution

Government Co contribution up to $500 shades out between $33,416 and $48,516, contact us for 13/14 rates & future years rates.

13. First Home Saver Accounts

Government Co contribution max of $935 account cap $80,000, , contact us for 13/14 rates & future years rates.

14. Non Resident Other Taxes

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

15. Rates per business kilometre

Car allowances – The car allowance from 1 July 2015 is now a flat 66c per kilometre. You may need to adjust the withholding from your employee’s car allowance to take this into account.

16. SUPERANNUATION CONTRIBUTION THRESHOLDS AND TAX RATES

Employer contributions: Superannuation Guarantee 9.5 per cent of ordinary time earnings, (maximum salary requiring SG payments is $160,680):

*Amounts $25k and under at 15% and amounts over $25K (over the CAP) will be added to your assessable income and taxed at your marginal tax rate.

** Members who have a adjusted taxable income of $250K or more pay 30% on their member balance, this effected by the individual receiving an amended assessment in their personal name and having an election for the Sup[er Fund to pay the assessment.

*** Members who exceed their non concessional contributions pay excess contributions tax of 46.5%

17. CONTRIBUTION CAPS

Contribution caps 2016–17,

• Concessional contribution cap is $25,000, exceed this and pay excess contributions tax.
• Non concessional cap is $100,000 (be aware of the Pension Cap, see below).

Contribution caps 2015–16, (note from 1 July 2017 it is reduced to $25,000).

* Unless a prior bring forward provision applies.  <Check ATO for updated rates>. the non concession contribution (including the 3 year bring forward rule contribution) cannot exceed the pension cap of $1.6million. These changes to be introduced on 1 July 2017 .are:

(1) non concessional contributions to be $100,000 per annum, (be aware of the Pension Cap, see below).

* Persons over 65 must meet the work test

18. Minimum Annual Pension Payments (once pension commenced)

No maximum pension withdrawal, except for Transition to Retirement pensions where the maximum is 10% of the account balance, <verify with ATO>

19. PRESERVATION RULES

Most of the super held in your fund will be in the form of preserved benefits. These must be preserved in the fund until the time the law and your fund’s trust deed allows them to be paid.

20. Contribution Eligibility & Work Test – Accumulation Phase:

Contribution eligibility rules – summary table

The following table summarises the current rules for when a person is allowed to contribute or receive contributions to a super fund for the 2015-16 financial year.

Important!

This is a summary table only. Please refer to the important notes following each table.

2.4 aren’t yet 75 years of age or older and have been gainfully employed for at least 40 hours over 30 consecutive days during the financial year

Note: A fund may accept contributions in respect of a member if the trustee is reasonably satisfied that the contribution is in respect of a period that it would have otherwise been made.

# a person is eligible for the government co-contribution up until the age of 70 (age as at the end of the financial year).

21. Preservation ages for Retirement:

Changes on 1.7.16 mean over 60’s TRIS payments are tax free to the beneficiary however the SMSF has to pay tax at accumulation rate (no longer pension tax free rate). Between 55 and 60 no changes meaning tax payable by beneficiary less the 15% rebate (tax already paid by the Superfund).

Before an SMSF starts paying a transition to retirement income stream (TRIS) to a member, the member must have reached their preservation age. This is the minimum age that a member can access their preserved super benefits without satisfying another condition of release.

From 1 July 2015 the legislated rise in the preservation age comes into effect. If a member turned 55 before 1 July 2015, they qualified for a TRIS and the change in preservation age won’t affect them. However, this age is now based on the member’s date of birth.

A member who turns 55 between July 1 2015 and 30 June 2016 cannot start a TRIS during the 2015-16 financial year. If born between 1 July 1960 and 30 June 1961 the earliest you can elect to start a TRIS is during the 2016-17 financial year.

The preservation age continues to rise until it reaches 60. For members born from 1 July 1960 to 30 June 1961 the age is 56. If born between:

• 1 July 1961 and 30 June 1962, it’s 57 and a TRIS can start in 2018-19
• 1 July 1962 and 30 June 1963, it’s 58 and a TRIS can start in 2020-21
• 1 July 1963 and 30 June 1964, it’s 59 and a TRIS can start in 2022-23.

The preservation age will be 60 for those born after 30 June 1964 and a TRIS can start from the 2024-25 year and onwards.

22. ETP THRESHOLDS

Tax free ETP see <ATO-Link>

23. SUPERANNUATION LUMP SUM BENEFITS

24. LUMP SUM DEATH BENEFITS

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

25. LIFE EXPECTANCY–2005–2007

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

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

Want to see those before 50 or after 90? View them here.

26. TAXED SCHEME – SUPERANNUATION PENSION PHASE TAX RATES

27. UNTAXED SCHEME – SUPERANNUATION PENSION PHASE TAX RATES

28.  AGE PENSION

Effective 20 March 2013 (revised quarterly)

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

Note: Allowance cuts out where assets exceed these limits; there is no gradual phasing out. Effective 1 July 2010.

29. Medicare Levy & Surcharge

Medicare Thresholds

Eligible for Seniors and Pensioners Tax Offset

Note: The full levy is 2.0% of taxable income; however, this varies for low income earners according to circumstances shown above. There is also some exempt groups of taxpayers.

For individuals, a reduced levy is calculated at 10c for every dollar above the relevant taxable income threshold amount, but at or below the phase-in limit shown in the table.

Reduced levy calculations, based on family income (combined taxable income of taxpayer and spouse) and number of dependent children, are more complex.

Medicare Levy Surcharge

* increase by $1,500 for each dependent child after first

29. Duty on Real Property

Standard Rates for contracts entered into after 1 July 2008

*Note duty rates are calculated per $100 or part thereof

Standard Residential Rate for contracts entered into after 1 July 2008

Concessional Rate for contracts entered into after 1 July 2008

*Note duty rates are calculated per $100 or part thereof

Standard Residential Rate for contracts entered into after 1 July 2014

Concessional Rate for contracts entered into after 1 July 2014

30. Land Tax

*Note duty rates are calculated per $100 or part thereof
*Levied on owners of land at midnight 30 June Click Here for the latest land tax rates Notes: Fortnightly income from $62 to $250 (inclusive) reduces fortnightly allowance by 50 cents in the dollar. For income above $250 pf, fortnightly allowance reduces by 60 cents in the dollar. Partner income which exceeds cut-out point further reduces fortnightly allowance by 60 cents in the dollar. These rates apply to Newstart, Partner, Widow, Sickness, and Mature Age Allowances. # These figures maybe higher if eligible for Pharmaceutical Allowance or Rent Assistance. * Includes $6.20 Pharmaceutical Allowance Effective 20 March 2010

31. Rental Property Depreciation Rates

You can only claim a deduction for the capital works on residential rental properties if the properties were built after 17 July 1985, capital works write off is 2.5% or 4% on buildings and depreciation for plant equipment is allowable unless the building is a used/second hand residential property AND was purchased  on or after 9 May 2017, for the rates see the <ATO website here> and <residential properties on page 35  here>.

Page last updated: 20th July 2016