Tax Rates | Examples | Registration
In Australia your tax rate rises as you earn more.
The Australian tax year runs from July 1st to June 30th the following year.
For the tax year 2019/2020 the situation is as follows:
Income Tax Rates as Percentages 2019 – 2020
| Taxable income | Tax Rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $37,000 | 19 percent |
| $37,001 – $90,000 | 32.5 percent |
| $90,001 – $180,000 | 37 percent |
| Over $180,000 | 45 percent |
Actual Taxes Deducted From Your Income
| Taxable income | Tax You Pay |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $37,000 | 19c for each $1 over $18,200 |
| $37,001 – $90,000 | $3,572 plus 32.5c for each $1 over $37,000 |
| $90,001 – $180,000 | $20,797 plus 37c for each $1 over $90,000 |
| Over $180,000 | $54,047 plus 45c for each $1 over $180,000 |  |
Examples
For example, a salary of $80,000 would be taxed at:
0% on the first $18,200 = $0
19 percent on $18,201 – $37,000 = $3,572
32.5 percent on $37,001 – $80,000 = $13,975
Total tax levied on $50,000 = $17,547
A salary of $120,000 would be taxed at:
0% on the first $18,200 = $0
19 percent on $18,201 – $37,000 = $3,572
32.5 percent on $37,001 – $90,000 = $17,225
37 percent on $90,001 – $120,000 = $11,100
Total tax levied on $50,000 = $31,897
Tax File Number (TFN)
You can register for tax online when you arrive in Australia by following this link to get a Tax File Number.
Medicare Levy
In addition to the above rates, a Medicare levy is deducted at 2.0 percent of your taxable income. If you have a low income, you may pay a reduced levy or be exempt.
Medicare Levy Surcharge
If you have an above average income and you do not buy enough private hospital cover, up to 1.5 percent of your taxable income will be deducted as Medicare Levy Surcharge (MLS).
This levy is in addition to Medicare levy.
The rate of levy depends on your family income.
Medicare Card
You can register with Medicare one week after you arrive in Australia.
(The delay allows time for Medicare to receive your details from the immigration authorities.)
Go to a Medicare office with your passport. All going well, you will receive a Medicare card number and your card will be posted to you about 10 days later.
Medicare has webpages that explain the system for migrants.
Previous Tax Rates
Income Tax Rates as Percentages for 2016/2017 and 2017/2018
| Taxable income | Tax Rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $37,000 | 19 percent |
| $37,001 – $87,000 | 32.5 percent |
| $87,001 – $180,000 | 37 percent |
| Over $180,000 | 45 percent |
For the tax year from 2012/2013 to 2015/2016 the situation was as follows:
Income Tax Rates as Percentages from 2012/2013 to 2015/2016
| Taxable income | Tax Rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $37,000 | 19 percent |
| $37,001 – $80,000 | 32.5 percent |
| $80,001 – $180,000 | 37 percent |
| Over $180,000 | 45 percent |
Income Tax Rates as Percentages 2011 – 2012
| Taxable income | Tax Rate |
|---|---|
| $0 – $6,000 | Nil |
| $6,001 – $37,000 | 15 percent |
| $37,001 – $80,000 | 30 percent |
| $80,001 – $180,000 | 37 percent |
| Over $180,000 | 45 percent |
Temporary Budget Repair Levy
This levy was payable at a rate of 2 percent of taxable income over $180,000. It applied to the 2014-15, 2015-16 and 2016-17 income tax years.