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Income Tax Slabs for Individuals

A. Residents
The following rates apply to individuals who are Australian residents for tax purposes

Relevant Year 2014-15

The given rates apply from 01.07.2014

Taxable income Tax on this income
$0 – $18,200 $0
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54,547 plus 45c for each $1 over $180,000

The above rates are exclusive of the Medicare levy of 2%

The temporary budget repair levy adds an additional 2% tax on individual’s income above $180,000.

B. Foreign residents

A foreign Resident for full year has to pay Income tax according to following rates:
Non-resident tax rates 2014-15

Taxable income Tax on this income
$0 – $80,000 32.5c for each $1
$80,001 – $180,000 $26,000 plus 37c for each $1 over $80,000
$180,001 and over $63,000 plus 45c for each $1 over $180,000

The temporary budget repair levy adds an additional 2%
tax on that part of an individual’s income above $180,000.
Medicare levy is not applicable on foreign residents.

C. Income of individuals under the age of 18

A person who is below 18 years of age is termed as Minor.

The income of Minors is taxable according to different set of rules under which, certain types of income, like family trust distribution is taxed at higher rates.

The basic purpose of Setting out these rules was to discourage adults from splitting their income and diverting it to their children.

Ordinary rates of tax apply to all the income of an excepted person.

As on 30.06.2014, a Minor is an excepted person if they were:

I. the main beneficiaries of a special disability trust.
ii. Permanently blind
iii. Entitled to a double orphan pension and received little or no financial support from relatives
iv. Disabled and were likely to suffer from that disability permanently or for an extended period
V. unable to work full-time because of a permanent mental or physical disability and received little or no financial support from relatives
vi. Entitled to a disability support pension or rehabilitation allowance, or someone was entitled to a carer allowance to care for them
vii. working full time, or had worked full time for three months or more in the 2013–14 income year (ignoring full-time work that was followed by full-time study),and

  • intending to work full time for most or all of the 2014–15 income year, and
  • not intending to study full time in the 2014–15 income year

There are certain types of Income of minors on which Ordinary Tax rates apply and these are known as Excepted Income

Following are the examples of excepted income:

  • income from a partnership in which they were an active partner.
  • income from Self run business.
  • income from their own business.
  • income from a deceased person’s estate.
  • employment income.
  • taxable pensions or payments from Centre link or the Department of Veterans affairs.
  • compensation, superannuation or pension fund benefits Income from the investment of any of the amounts listed above.
  • net capital gains from the disposal of any property or investments listed above.

Minors who are Australian residents do not have to lodge a tax return if they earn less than $416 in the 2013–14 income years.

For more information on Individual Tax Rates visit ATO website by clicking here.

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