All Australian residents and entities must meet their tax obligations. Australian residents are required to pay tax on worldwide income. Whereas foreign residents are required to pay income tax on all income that has its source in Australia. Below are the tax rates for each group for the 2016-17 financial year.

Australian residents

Taxable income               Tax payable

0 – $18,200                            Nil

$18,201 – $37,000                19c for each dollar 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

 

On top of the above rates, each resident will also be required to pay 2% for their Medicare Levy. Residents that are earning over $180,000 will also be liable for an additional rate of 2% (“Temporary Budget Repair Levy”).

Non-residents

Taxable income              Tax payable

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

Foreign residents are not required to pay the Medicare levy. However, they are subject to the Temporary Budget Repair Levy if they earn over $180,000.

Companies

Companies                         Tax rate %

Small business entities        28.5

Otherwise                               30
Operates a business for all or part of the income year; andSmall business can be either a sole trader, partnership, company or trust that:

  • Has less than $2 million aggregated turnover.

It is important to note that some companies may be taxed differently such as credit unions, insurance companies or not for profit companies.

If you require any further information in relation to you or your company’s tax obligations, please contact our team of tax accountants at The Quinn Group on (02) 9223 9166 or submit an online enquiry form today.