In 2019, the most current updates to the tax rates were put into effect. The following rates apply to residents, non-residents, and individuals designated as a holiday maker in Australia and run through 2020. These are brackets that apply to individuals and do not reflect multiple-party filings. The Australian tax year begins on July 1 and extends to June 30 of the following year.
If you earn up to $18,000 as a resident, then you are not under obligation for any taxable rate. Once you earn $18,201 you are taxed at a rate of 19% and then a tax payable of 19 cents for each dollar up to $37,000.
At $37,0001 to $90,000, the taxable rate is at 37% and the tax payable of $3,572 plus 32.5% of amounts over $37,000.
At $90,001 -180,000, the rate rises to 37% with the tax payable on this rate of $20,797 plus 37% of amounts over $90,000.
Anyone with an income threshold of $180,000 or more is subject to a 45% tax rate of which the tax payable on this income is $54,096 plus 45% of amounts over $180,000.
For any non-resident of Australia, any income up to $90,000 will garner a tax payable of 32.5 cents for each $1 earned.
At $90,001 to $180,000 in taxable income, the tax payable is $29,250 in addition to 37 cents for each dollar over $90,000.
Finally, at a taxable income of $180,001 or more, a non-resident will be responsible for a tax payable of $62,550 plus 45 cents for every dollar earned over $180,000.
All of these tax rates, whether they pertain to a resident or non-resident, do not include any surcharges related to the Medicare Levy or the surcharge associated with this levy which has increased to 2 percent. Additionally, some of these amounts can potentially be reduced on a temporary basis through qualifying under the Low and Middle Income Tax Offsets (LMITO) as well as multiple years of tax bracket revisions. These possible reductions are only applicable to residents of Australia.
If you have the status of a holiday maker in Australia, this means you are designated by the government as someone who comes to Australia for a working holiday and are a foreign resident. Typically, this is someone who holds a visa. The government categorises these individuals as either a 417, which is on a working holiday, or a 462, which is work and holiday. The rate of taxable income is the first $37,000 at 15% while the balance of what is made is taxed at the regular rate depending upon what threshold you fall into.