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Individual Tax Returns

The 2018 financial year starts on 1 July 2017 and ends on 30 June 2018. The tax free thresholds and brackets for 2017-18 are unchanged from the previous tax year.

Tax rates 2017-18

Taxable income	Tax on this income
0 – $18,200	Nil
$18,201 – $37,000	19c for each $1 over $ 18,200
$37,001 – $87,000	$3,572 plus 32.5c for each $1 over $37,000
$87,001 – $180,000	$19,822 plus 37c for each $1 over $87,000
$180,001 and over	$54,232 plus 45c for each $1 over $180,000

* The above table does not include Medicare Levy or the effect of any Low Income Tax Offset (“LITO”).

You can earn up to $20,542 before any income tax is payable, when taking into account LITO.

In 2017-18 the Medicare Levy is applied on a progressive basis at the additional rate of 2%.

If eligible private health insurance cover is not maintained the Medicare Levy Surcharge adds a further levy of up to 1.5% depending on income.

Subject to the minimum income thresholds, the basic Medicare Levy is calculated as a percentage of taxable income, and applies to resident Australian taxpayers.

The Medicare Levy Surcharge (“MLS”) – operates in addition to the basic Medicare levy if sufficient private patient hospital insurance cover is not maintained and ranges from 1% to 1.5% based on an income test.

There are separate income thresholds for the Medicare levy for individuals and families as set out below. Once the minimum income threshold is reached, the levy is payable on income unless a reduction or exemption is applicable.

The levy formulae operate to ensure that there is no Levy payable if income is not high enough to pay income tax. Pensioners below Age Pension age do not pay the Medicare levy when they have no tax to pay.

Non-residents

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

Tax rates 2017-18

Taxable income	Tax on this income
0 – $87,000	32.5c for each $1
$87,001 – $180,000	$28,275 + 37c for each $1 over $87,000
$180,000 and Over	$62,685 + 45c for each $1 over $180,000

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

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