THE TAX INSTITUTE. Tax Rates Table

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1 THE TAX INSTITUTE Tax Rates Table taxinstitute.com.au

2 Individual income tax rates Residents Taxable income Marginal rate Tax on this income $0 $18,200 Nil Nil $18,201 $37,000 19% 19c for each $1 over $18,200 $37,001 $80, % $80,001 $180,000 37% $180,001 and over 45% $3,572 plus 32.5c for each $1 over $37,000 $17,547 plus 37c for each $1 over $80,000 $54,547 plus 45c for each $1 over $180,000 Does not include the Medicare levy of 1.5% of taxable income, subject to low income thresholds. Does not include the Medicare levy surcharge for persons without private health insurance. Individual income tax rates Non-residents Taxable income Marginal rate Tax on this income $0 $80, % 32.5c for each $1 $80,001 $180,000 37% $180,001 and over 45% $26,000 plus 37c for each $1 over $80,000 $63,000 plus 45c for each $1 over $180,000 Non-residents are not required to pay the Medicare levy. Medicare Levy Individuals Taxpayer Taxable income Medicare Levy If eligible for the seniors and pensioners tax offset (SAPTO)* All other individual taxpayers $0 $32,279 $32,280 $37,975 $37,976+ $0 $20,542 $20,543 $24,167 $24,168+ Nil 10% of excess over $32, % on total taxable income Nil 10% of excess over $20, % on total taxable income *Even if a taxpayer meets all the eligibility conditions for the seniors and pensioners tax offset, they may not get it as the amount of the tax offset is based on their individual taxable income, not their combined taxable income if they had a spouse. If they do not get it, they will not get a Medicare levy reduction. Tel:

3 Families Family with following children or students No levy payable if family income does not exceed Where family income within range, 10% of the amount by which family income exceeds amount in second column Ordinary Medicare Levy payable where family income equal to or exceeds 0 $33,693 $33,694 $39,638 $39,639 1 $36,787 $36,788 $43,278 $43,279 2 $39,881 $39,882 $46,918 $46,919 3 $42,975 $42,976 $50,558 $50,559 4 $46,069 $46,070 $54,198 $54,199 5 $49,163 $49,164 $57,838 $57,839 6 $52,257* $52,258* $61,478# $61,479# + Not applicable to those eligible for seniors and pensioners tax offset *Where there are more than six, add $3,094 for each extra child or student # Where there are more than six, add $3,640 for each extra child or student Medicare Levy surcharge and private health insurance rebates No surcharge & maximum rebate Tier 1 Tier 2 Tier 3 Singles $84,000 or less $84,001- $97,000 $97,001- $130,000 $130,001 or more Families* $168,000 or less $168,001- $194,000 $194,001- $260,000 $260,001 or more Aged under 65 Rebate 30% 20% 10% 0% Aged % 25% 15% 0% Aged 70 or over 40% 30% 20% 0% Medicare levy surcharge Rate 0.0% 1.0% 1.25% 1.5% taxinstitute.com.au

4 No surcharge & maximum rebate Tier 1 Tier 2 Tier 3 Singles $88,000 or less $88,001- $102,000 $102,001- $136,000 $136,001 or more Families* $176,000 or less $176,001- $204,000 $204,001- $272,000 $272,001 or more Aged under 65 Rebate 30% 20% 10% 0% Aged % 25% 15% 0% Aged 70 or over 40% 30% 20% 0% Medicare levy surcharge Rate 0.0% 1.0% 1.25% 1.5% *The family income threshold is increased by $1,500 for each Medicare levy surcharge dependent child after the first child. The Medicare Levy surcharge is a percentage of taxable income and reportable fringe benefits, and is in addition to the Medicare Levy. It is paid by taxpayers who do not have private patient hospital cover for any period of the year. Income for surcharge purposes is the sum of taxable income (including the net amount on which family trust distribution tax has been paid); exempt foreign employment income; reportable fringe benefits; total net investment losses; and, reportable super contributions; less, if aged years old, any taxed element of a super lump sum, other than a death benefit, that does not exceed the low rate cap. Low income taxpayer s offset Taxable income Rebate $0 $37,000 $445 $37,001 $66,666 $445 less 1.5 cents for every $1 of the amount (if any) by which the taxpayer s taxable income of the year of income exceeds $37,000. $67,667 and over Nil From 1 July 2011, minors (children under 18 years of age) will no longer receive the low income tax offset to reduce tax payable on their unearned income (for example, distributions from discretionary trusts, dividends, interest, rent, royalties and other income from property). Tel:

5 Seniors and Pensioners Tax Offset (SAPTO) Maximum offset per taxpayer Shade-out threshold (rebate income)* Cut-out threshold (rebate income) Single $2,230 $32,279 $50,119 Couple (combined rebate income) Illness separated couple (combined rebate income) $1,602 $57,948 $83,580 $2,040 $62,558 $95,198 * Maximum offset reduced by 12.5 cents for each dollar of rebate income in excess of shade-out threshold. Rates for other taxpayers Entity Rate Company 30% Corporate unit trust and public trading trust 30% Complying superannuation fund (other than non-arm s length income) Complying superannuation fund (non-arm s length income) 15% + 45% Non-complying superannuation fund 45% Trustee (under s 99A) (excluding Medicare levy) + Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Act 2013 and Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Act 2013 together impose a 15% tax on individuals with combined income and concessionally taxed contributions exceeding $300,000 in an income year. The tax is 15% on those contributions exceeding the $300,000 threshold. Other rates Division 7A benchmark interest rate Year of income ended 30 June 2013 Year of income ended 30 June % 6.20% Reference TD 2012/15 Reference TD 2013/17 45% If the interest rate on a loan made by a private company to one or more of its shareholders (or their associates) for each year after the year in which the loan was made is equal to or greater than the benchmark interest rate for each year, and other conditions are satisfied, Div 7A ITAA 1936 will not treat the loan as a dividend in the income year in which the loan is made. taxinstitute.com.au

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7 Cents per kilometre method: Rates per business kilometre Engine capacity Cents per kilometre Ordinary car Rotary engine car income year 1600cc (1.6 litre) or less 1601cc cc (1.601 litre litre) 2601cc (2.601 litre) and over 800cc (0.8 litre) or less 801cc cc (0.801 litre litre) 1301cc (1.301 litre) and over 63 cents 74 cents 75 cents A taxpayer can use this method to claim up to a maximum of 5,000 business kilometres per car even if the taxpayer has travelled more than 5,000 business kilometres. Car limit Year of income ended 30 June 2013 Year of income ended 30 June 2014 $57,466 $57,466 Reference TD 2012/16 Reference TD 2013/15 The car limit is used to work out decline in value deductions of certain cars under the income tax law. Note that the luxury car threshold for is $60,316 - see Luxury Car Tax Determination LCTD 2013/1. CPI Index Numbers Year March qtr June qtr September qtr December qtr *Cost base indexation is frozen as at 30 September Note that the Australian Bureau of Statistics changed the index reference base in September As a result, all CPI rates have been reset and the previous rates no longer apply. Tel:

8 FBT FBT rate and gross up rates The FBT rate for the year commencing 1 April 2012 is. The FBT rate for the year commencing 1 April 2013 is. The gross up rate for Type 1 benefits (employer entitled to ITC) is The gross up rate for Type 2 benefits (other) is Statutory fraction - Statutory formula method For cars made available or for which there was a pre-existing commitment before 7.30pm (AEST) 10 May 2011: Annualised number of kilometres Statutory fraction <15, ,000 24, , >40, For cars made available after 7.30pm (AEST) 10 May 2011, the rates for the FBT year are: 0.20 (up to but not exceeding 25,000kms), 0.17 (25,001-40,000kms) and 0.13 (over 40,000kms) FBT year are: 0.20 (up to but not exceeding 40,000kms, 0.17 (over 40,000kms). Note: It is proposed to abolish the statutory formula method effective 1 April 2014, for cars under contracts entered into after 16 July Key FBT data Year commencing 1 April 2012 Year commencing 1 April 2013 Car parking threshold $7.83 (TD 2012/9) $8.03 (TD 2013/9) Living away from home allowances: Reasonable food components (a) General reasonable food components within Australia: 1 adult (ie. persons aged 12 or older) 2 adults 3 adults 1 adult & 1 child 2 adults & 1 child 2 adults & 2 children 2 adults & 3 children 3 adults & 1 child 3 adults & 2 children 4 adults (b) Larger family groupings: Rates to be applied on a cents-per-kilometre basis when calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car: Engine capacity cc Over 2500cc Motorcycles $250 per week $400 per week $450 per week $325 per week $450 per week $450 per week $524 per week $524 per week $599 per week $599 per week A food component based on the figures in (a), plus $150 for each additional adult and $75 for each additional child (TD 2012/5) 48 cents 57 cents 14 cents (TD 2012/6) $233 per week $350 per week $467 per week $292 per week $409 per week $468 per week $527 per week $526 per week $585 per week $584 per week A food component based on the figures in (a), plus $117 for each additional adult and $59 for each additional child (TD 2013/4) 49 cents 59 cents 15 cents (TD 2013/7) taxinstitute.com.au

9 Year commencing 1 April 2012 Year commencing 1 April 2013 Non-remote area housing indexation factors New South Wales Victoria Queensland South Australia Western Australia Tasmania Australian Capital Territory Northern Territory (TD 2012/4) (TD 2013/5) Benchmark interest rate 7.40% (TD 2012/7) 6.45% (TD 2013/8) Minor benefits $300 value $300 value In-house benefits Record-keeping exemption threshold First $1,000 taxable value per employee per year is exempt First $1,000 taxable value per employee per year is exempt $7,642 (TD 2012/3) $7,779 (TD 2013/6) Superannuation and ETPs Key superannuation data Concessional contributions cap for individuals aged 59 years or over on 30 June 2013 Concessional contributions cap for other individuals Not applicable $35,000 $25,000 $25,000 Non-Concessional Contributions cap $150,000 $150,000 CGT Cap $1,255,000 $1,315,000 Low Rate Cap /ETP cap amount $175,000 $180,000 Untaxed Plan Cap $1,255,000 $1,315,000 ETP Life Benefit Cap $175,000 $180,000 ETP Life Benefit Whole of Income Cap $180,000 $180,000 ETP Death Benefit Cap $175,000 $180,000 Based Tax-Free Area of a Bona-Fide Redundancy $8,806 $9,246 For Each Completed Year of Service $4,404 $4,624 Superannuation guarantee charge percentage 9% 9.25% Maximum Contribution Base (per quarter) $45,750 $48,040 Co-Contribution Lower Income Threshold $31,920 $33,516 Co-Contribution Upper Income Threshold $46,920 $48,516 Tel:

10 Superannuation lump sum tax table Income component derived in the income year Age at the date payment is received subject to tax Maximum rate of tax (including Medicare levy) Member Benefit taxable component taxed element Member Benefit taxable component untaxed element Death Benefit lump sum benefit paid to non-dependants taxable component taxed element Death Benefit lump sum benefit paid to non-dependants taxable component untaxed element Death Benefit lump sum benefit paid to dependants taxable component taxed and untaxed elements Under preservation age At or above preservation age and under 60 Aged 60 and above Under preservation age At or above preservation age and under 60 Aged 60 and above Whole amount 21.5% up to the Low Rate Cap above the Low Rate Cap Nil payment is non-assessable non-exempt income up to Untaxed Plan Cap above Untaxed Plan Cap up to the Low Rate Cap above the Low Rate Cap and up to the Untaxed Plan Cap above the Untaxed Plan Cap up to the Untaxed Plan Cap above the Untaxed Plan Cap Nil 16.5% N/A 31.5% 16.5% 31.5% 16.5% Any Whole amount 16.5% Any Whole amount 31.5% Any None Nil taxinstitute.com.au

11 Income component derived in the income year Rollover superannuation benefits taxable component taxed element Rollover superannuation benefits taxable component untaxed element Superannuation lump sum benefits less than $200 Super lump sum benefit (terminally ill recipient) Preservation age Age at the date payment is received Any Any subject to tax Nil - payment is not assessable income and is not exempt income up to the Untaxed Plan Cap is not assessable income and is not exempt income above the Untaxed Plan Cap Maximum rate of tax (including Medicare levy) N/A N/A Any None Nil Any None Nil Date of birth Preservation age Before 1 July July June July June July June July June From 1 July Minimum annual payments for superannuation income streams Age For years 1 July 2008 to 30 June 2011* For years 1 July 2011 to 30 June 2013* Minimum % withdrawal (in all other cases) Under 65 2% 3% 4% % 3.75% 5% % 4.5% 6% % 5.25% 7% % 6.75% 9% % 8.25% 11% 95 or more 7% 10.5% 14% *The reduction in the minimum payment amounts applies to account-based annuities and pensions, allocated annuities and pensions, and market-linked annuities and pensions. Tel:

12 Income stream tax table Element taxed in the fund Age of recipient Age 60 and over At or above preservation age and under 60 Under preservation age Income stream Not assessable, not exempt income Taxed at marginal tax rates* Tax offset of 15% is available Taxed at marginal tax rates, with no tax offset* Tax offset of 15% is available if a disability super benefit *The tax-free component is not included. This component is not assessable and not exempt income in all cases. Note: Medicare levy (1.5%) will apply if amounts are assessable. ETP tax table Income component derived in the income year Life Benefit ETP taxable component Payment is because of: golden handshakes gratuities payment in lieu of notice a payment for unused sick leave a payment for unused rostered days off Life Benefit ETP taxable component Payment is because of: early retirement scheme genuine redundancy invalidity certain compensation Death Benefit ETP paid to non-dependants taxable component Age at the end of the income year in which the payment is received Under preservation age At or above preservation age All ages Under preservation age At or above preservation age All ages All ages Component subject to tax Up to the lesser of ETP Life Benefit Cap and ETP Life Benefit Whole of Income Cap reduced by non-etp taxable income Up to the lesser of ETP Life Benefit Cap and ETP Life Benefit Whole of Income Cap reduced by non-etp taxable income Above the lesser of ETP Life Benefit Cap and ETP Life Benefit Whole of Income Cap reduced by non-etp taxable income Up to ETP Life Benefit Cap Up to ETP Life Benefit Cap above ETP Life Benefit Cap Up to ETP Death Benefit Cap above ETP Death Benefit Cap Maximum rate of tax (including Medicare levy) 31.5% 16.5% 31.5% 16.5% 31.5% 0108MAR_07/13 Death Benefit ETP paid to dependants taxable component All ages Up to ETP Death Benefit Cap is not assessable income and is not exempt income above ETP Death Benefit Cap Nil taxinstitute.com.au