Lodgment rates & thresholds guide 2016-17

Lodgment rates & thresholds guide 2016-17

To save you having to laboriously search for the right tax rate or relevant threshold, the essential information is right here in one place.

This guide includes tax rates, offset limits and benchmarks, rebate levels, allowances, and essential superannuation as well as fringe bene t tax rates and thresholds (including current gross- up factors). Student loan repayment rates and salary levels are also included.

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Individual tax rates for residents

Taxable income Rate (%) Tax on this income

2015-16 tax thresholds

$0 – $18,200 0 Nil tax payable
$18,201 – $37,000 19 19c for each $1 over $18,200
$37,001 – $80,000 32.5 $3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000 37 $17,547 plus 37c for each $1 over $80,000
$180,001 & above 47* $54,547 plus 47c for each $1 over 180,000

2016-17 tax thresholds

$0 – $18,200 0 Nil tax payable
$18,201 – $37,000 19 19c for each $1 over $18,200
$37,001 – $80,000# 32.5 $3,572 plus 32.5c for each $1 over $37,000
$80,001# – $180,000 37 $17,547 plus 37c for each $1 over $80,000
$180,001 & above 47* $54,547 plus 47c for each $1 over 180,000

*Includes 2% Temporary Budget Repair Levy
#Likely threshold increase from $80,000 to $87,000 not yet enacted
Note: LITO not available for certain minor income.

Individual tax rates for non-residents

2015-16 tax thresholds

$0 – $80,000 32.5 32.5c for each $1
$80,001 – $180,000 37 $26,000 plus 37c for each $1 over $80,000
$180,001 & above 47* $63,000 plus 47c for each $1 over $180,000

2016-17 tax thresholds

$0 – $80,000# 32.5 32.5c for each $1
$80,001# – $180,000 37 $26,000 plus 37c for each $1 over $80,000
$180,001 & above 47* $63,000 plus 47c for each $1 over $180,000

*Includes 2% Temporary Budget Repair Levy
#Likely threshold increase from $80,000 to $87,000 not yet enacted

2015-16 resident minors’ tax rate on eligible income

Taxable income Tax on this income
Up to $416 Nil
$417 – $1,307 68%* for the part over $416
$1,308 & above 47%* on the entire amount

*Includes 2% Temporary Budget Repair Levy
#Likely threshold increase from $80,000 to $87,000 not yet enacted
Note: LITO not available for certain minor income.

2015-16 non-resident minors’ tax rate on eligible income

Taxable income Tax on this income
Up to $416 34.5%* on the entire amount
$417 – $663 $143.52 + 68%* on the part over $416
$664 & above 47%* on the entire amount

*Includes 2% Temporary Budget Repair Levy

Corporate entity tax rates

Rate

Private and public companies 30% or 28.5%1
Corporate unit trusts and public trading trusts 30% or 28.5%1
Life Insurance companies
Ordinary class 30%
Complying superannuation class 15%
Non-profit companies
First $416 of taxable income Nil
Taxable income $417 – $9152 55% of excess over $4162
Taxable income $9162 and above 30% or 28.5%1
  1. The tax rate is reduced to 28.5% for companies that are “small business entities” (SBEs) with an aggregated annual turnover of less than $2 million from 1 July 2015.
  2. Upper limit is reduced from $915 to $863 for non- profit companies that are SBEs from 1 July 2015.

Tax offsets for individuals

2015-16 & 2016-17 Low Income Tax Offset

Taxable income Tax offset
$0 – $37,000 $445
$37,001 – $66,666 $445 – (1.5% of excess over $37,000)
$66,667 & above Nil

2015-16 Net Medical Expenses Offset

Tax offset claimable1 Adjusted taxable income
20% of net medical expenses exceeding $2,265 Single2: $90,000 or less Family3: $180,000 or less
10% of net medical expenses exceeding $5,343 Single2: above $90,000 Family3: above $180,000
  1. Offset for 2015-16 only available for disability aids, attendant care or aged care.
  2. Single at 30 June 2016 and no dependent children.
  3. Has a spouse at 30 June 2016, or dependent children at any time during 2015-16, or both.

2015-16 Dependant (Invalid and Carer) Offset

Adjusted taxable income (ATI) is: Offset amount
$282 or less $2,588*
$283 – $10,634 $2,588* – [(ATI – $282) ÷ 4]
$10,634 and above Nil

*This is the maximum offset. Assumes dependant status maintained for full income year.

2015-16 Senior Australian and Pensioners Tax Offset

Family status Maximum tax offset Shade-out income threshold Cut-out income threshold
Single $2,230 $32,279 $50,119
Married or de facto (each) $1,602 $28,974 $41,790
Separated due to illness (each) $2,040 $31,279 $47,599

Note: Offset entitlements reduce by 12.5c for each $1 of rebate income in excess of the shade-out threshold. No entitlement when rebate income reaches the cut-out threshold.

FBT rates and thresholds

FBT and gross-up rates

FBT year Rate Type 1 Type 2
2015-16 & 2016 -17 49% 2.1463 1.9608
2017-18 47% 2.0802 1.8868

Car fringe benefits

Statutory formula method

The statutory fraction is 20%*.

*Applies to “commitments” entered into from May 2011. Previous statutory fractions based on kms travelled may be used for pre-May 2011 commitments.

Taxable value of a fringe benefit of a motor vehicle other than a car (c/km basis)

FBT year ending 0- 2500cc Over 2500cc Motor- cycles
31-Mar-16 51c 61c 15c
31-Mar-17 52c 63c 15c

Record keeping exemption

2015-16 $8,164 2016-17 $8,286

FBT – Benchmark interest rate

2015-16 5.65% 2016-17 5.65%

Car parking threshold

2015-16 $8.37 2016-17 $8.48

Div 7A – benchmark interest rate

2015-16 5.45%
2016-17 5.40%

2015-16 CGT improvement threshold

Improvement threshold $143,392

Motor vehicles

2015-16 2016-17
Luxury car tax limit $63,184 $64,132
Fuel efficient luxury car tax limit $75,375 $75,526
Car depreciation limit $57,466 $57,581
Maximum input tax credit claim for cars $5,224 $5,234

2015-16 & 2016-17 Cents per km car rates

66c per km regardless of engine size.

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Welcome to the InterActive Tax Consultants’ news – part of our personal and easy to understand approach to taxation. We are committed to working with you to achieve the best results for your business. If you have any question or would like more information on any of the articles please contact us.