Australian Individual 2005/2006 Tax Rate

TAX RATES SYSTEM
In Australia, a taxpayer's income is taxed progressively. Broadly, this means that as you earn more income your average tax rate rises. For Australian residents, the first tax bracket, from $0 to $6,000, has a zero marginal rate of tax. This tax-free amount is called the tax-free threshold.

ResidentsThese rates apply to individuals who:
are residents of Australia for tax purposes for• the whole financial year
did not leave full-time education for the first• time during the financial year.

Tax rates 2005-06
Taxable income Tax on this income
$0 – $6,000 = Nil
$6,001 – $21,600 = 15c for each $1 over $6,000
$21,601 – $63,000 = $2,340 plus 30c for each $1 over $21,600
$63,001 – $95,000 = $14,760 plus 42c for each $1 over $63,000
Over $95,000 = $28,200 plus 47c for each $1 over $95,000

The above rates do not include the Medicare levy of 1.5%.

Tax offsets reduce the tax payableTax offsets based on taxable income levels apply to:
individuals on low incomes below• $27,475
individuals who receive certain Australian government allowances• and payments
senior Australians.Other tax offsets apply to people with• dependants, those living in remote areas and those who receive particular types of income or incur particular expenses


Non-residents
If you are a non-resident for the full year, the following rates apply:

Tax rates 2004-05
Taxable income Tax on this income:
$0 – $21,600 = 29c for each $1
$21,601 – $58,000 = $6,264 plus 30c for each $1 over $21,600
$58,001 – $70,000 = $17,184 plus 42c for each $1 over $58,000
Over $70,000 = $22,224 plus 47c for each $1 over $70,000


Tax rates 2005-06
Taxable income Tax on this income
$0 – $21,600 = 29c for each $1
$21,601 – $63,000 = $6,264 plus 30c for each $1 over $21,600
$63,001 – $95,000 = $18,684 plus 42c for each $1 over $63,000
Over $95,000 =$32,124 plus 47c for each $1 over $95,000

Non-residents are not required to pay the Medicare levy.