The following information provides an overview of the tax rates for individuals for the 2022-2023 financial year.
Tax-Free Threshold (for Australian residents only)
The first $18,200 of an individual’s taxable income is not taxed in Australia. This amount is known as the tax-free threshold. This means that if your taxable income is less than $18,200, you will not be required to pay any tax.
Tax Rates for Residents
The following table shows the tax rates for residents in Australia for the 2022-2023 financial year:
Please note, the below rates do not include the 2% of Medicare Levy
| Taxable income | Tax on this income |
| 0 – $18,200 | Nil |
| $18,201 – $45,000 | 19 cents for each $1 over $18,200 |
| $45,001 – $120,000 | $5,092 plus 32.5 cents for each $1 over $45,000 |
| $120,001 – $180,000 | $29,467 plus 37 cents for each $1 over $120,000 |
| $180,001 and over | $51,667 plus 45 cents for each $1 over $180,000 |
Tax Rates for Non-Residents
Non-residents are subject to different tax rates compared to residents. The following table shows the tax rates for non-residents in Australia for the 2022-2023 financial year:
Please note, Medicare Levy does not apply to non-residents.
| Taxable income | Tax on this income |
| 0 – $120,000 | 32.5 cents for each $1 |
| $120,001 – $180,000 | $39,000 plus 37 cents for each $1 over $120,000 |
| $180,001 and over | $61,200 plus 45 cents for each $1 over $180,000 |
Tax Rates for Working Holiday Makers
Working holidaymakers are subject to different tax rates compared to residents and non-residents. The following table shows the tax rates for working holidaymakers in Australia for the 2022-2023 financial year:
Please note, Medicare Levy does not apply to working holidaymakers.
| Taxable income | Tax on this income |
| 0 – $45,000 | 15% |
| $45,001 – $120,000 | $6,750 plus 32.5 cents for each $1 over $45,000 |
| $120,001 – $180,000 | $31,125 plus 37 cents for each $1 over $120,000 |
| $180,001 and over | $53,325 plus 45 cents for each $1 over $180,000 |
It’s important to note that the above tax rates are just a general guide and may not apply to everyone. It’s always best to seek professional advice from a qualified accountant or tax agent to ensure you are paying the correct amount of tax.
In conclusion, understanding individual income tax rates in Australia is crucial for ensuring you pay the correct amount of tax and avoid penalties. It’s important to stay up to date on changes in tax laws and seek professional advice if necessary.
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