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Income Tax Rates

Residents and Non-residents tax rates



Australia has four income tax rates, shown below (effective 1st July 2005):

Anyone who isn’t resident in Australia for a whole financial year receives a pro rata portion of the tax-free allowance ($6,000 per year); for example, if you’re resident in Australia for half the tax year, your tax-free allowance is $3,000. Special tax rules apply to those under the age of 18, whose income is generally taxed at a higher rate. There are no special rates for spouses in Australia, where the same tax rates apply to married and single individuals.

Taxable Income ($)

Tax Rate (%)

Under 6,000

0

6,001 – 21,600

17

21,601 – 63,000

30

63,001 – 80,000

42

Over 80,000

47

Non-residents

There’s no tax-free allowance for non-residents with business and trading income in Australia, who are taxed as shown below (note that non-residents should have a tax file number and quote it to their employer, or they’re taxed at the maximum rate of 47 per cent).

Taxable Income ($)

Tax Rate (%)

Up to 21,600

29

21,601 – 63,000

30

63,001 – 80,000

42

Over 80,000

47


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