Income Tax rates post-Carbon Tax

Tax Law: 22 March 2019

Individual Tax rates on taxable income between $18,201 and $80,000 are to increase as a result of tax changes following introduction of the Carbon Tax.

Rates and tax payable: 2011-12 (ie current rates)
Taxable income ($)	Tax payable ($)
0 - 6,000	Nil
6,001 - 37,000	Nil + 15% of excess over 6,000
37,001 - 80,000	4,650 + 30% of excess over 37,000
80,001 - 180,000	17,550 + 37% of excess over 80,000
180,001 +	54,550 + 45% of excess over 180,000
Notes: 1. The above rates exclude the 1.5% Medicare levy and the flood levy. 2. The low income tax offset is a maximum of $1,500. 3. The effective tax-free threshold is $16,000.

Proposed rates and tax payable: 2012-13, 2013-14 and 2014-15
Taxable income ($)	Tax payable ($)
0 - 18,200	Nil
18,201 - 37,000	Nil + 19% of excess over 18,200
37,001 - 80,000	3,572 + 32.5% of excess over 37,000
80,001 - 180,000	17,547 + 37% of excess over 80,000
180,001 +	54,547 + 45% of excess over 180,000
Notes: 1. The above rates exclude the 1.5% Medicare levy. 2. The low income tax offset is a maximum of $445. 3. The effective tax-free threshold is $20,542.

Proposed rates and tax payable: 2015-16 and following years
Taxable income ($)	Tax payable ($)
0 - 19,400	Nil
19,401 - 37,000	Nil + 19% of excess over 19,400
37,001 - 80,000	3,344 + 33% of excess over 37,000
80,001 - 180,000	17,534 + 37% of excess over 80,000
180,001 +	54,534 + 45% of excess over 180,000
Notes: 1. The above rates exclude the 1.5% Medicare levy. 2. The low income tax offset is a maximum of $300. 3. The effective tax-free threshold is $20,979.

Aitken Partners is hosting a forum on the Carbon Tax and its implications on business on Wednesday 13 July, for further information please email aclarke@aitken.com.au.

Please note: The information in this article is provided for general information purposes only and does not constitute legal advice. It is not intended to be comprehensive or to apply to any specific circumstances. You should seek independent legal advice before acting on any information contained in this article.