Australia’s Tax Rates for 2012 and Beyond

June 29, 2012 by  Filed under: Taxes 

For the 2012 financial year, which runs from 1 July 2011-30 June 2012, Australian residents will be taxed as follows:

Resident Tax Rates for 2011-2012

Taxable Income

Tax on This Income

$0-$6,000

Nil

$6,001-$37,000

15c for each $1 over $6,000

$37,001-$80,000

$4,650 plus 30c for each $1 over $37,000

$80,001-$180,000

$17,550 plus 37c for each $1 over $80,000

Over $180,000

$54,550 plus 45c for each $1 over $180,000

Note: none of these rates include the Flood Levy or Medicare Levy of 1.5%, which will add to your overall liability.

When you lodge your tax return during the upcoming season (which runs from July to October), the above rates are the ones at which you will be taxed.

Looking ahead to next year, there are several dramatic changes in store for the 2013 financial year:

Resident Tax Rates for 2012-2013

Taxable Income

Tax on This Income

$0-$18,200

Nil

$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

Over $180,000

$54,547 plus 45c for each $1 over $180,000

This dramatic shift – most significantly the tripling of the tax-free threshold – is due primarily to the carbon tax, which goes into effect July 2012. The changes are designed to help compensate low-income individuals for the higher costs that will be passed on to consumers by polluting companies after the new legislation goes into effect.

Foreign residents have a whole different set of (much higher) rates. Those filing a nonresident tax return for the 2011-2012 tax year will pay tax according to the following rates:

Nonresident Tax Rates for 2011-2012

Taxable Income

Tax on This Income

$0-$37,000

29c for each $1

$37,001-$80,000

$10,730 plus 30c for each $1 over $37,000

$80,001-$180,000

$23,630 plus 37c for each $1 over $80,000

Over $180,000

$60,630 plus 45c for each $1 over $180,000

Part of the way the Government is paying for the reduced rates for Australian residents is by raising rates for nonresidents. Thus, for the 2012-2013 tax year, rates for nonresidents are even less generous:

Nonresident Tax Rates 2012-2013

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

Over $180,001

$63,000 plus 45c for each $1 over $180,000

While your tax rate is certainly a major component affecting how much you are taxed, it is hardly the only consideration. Your age, marital status, dependents, private hospital policy, residency, and deductions can all affect how much you are taxed.

Using a tax calculator can get you a more accurate picture of your tax situation than just considering rates alone.

Don’t let these rates confuse you. For a simple and affordable solution, lodge your Australian tax return online with TaxPack.

Article Source:
http://EzineArticles.com/?expert=Sam_Lederman

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