• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

EtaxLocal

EtaxLocal | Tax Agents | Small Business Accountants

  • Home
  • Business Services
    • Company Tax Return
    • Small Business Tax Returns
    • Partnership Tax Returns
    • Trust Tax Returns
    • BAS Services
    • Small Business Accounting
    • Complete Packages
    • Small Business Bookkeeping
    • Etax Local Business Tax Checklists
  • Individual Services
    • Individual Tax Returns
    • Tax Return Checklists – free download
    • SMSF Annual Tax Return
    • Rideshare Tax Returns
    • Freelancer Tax, Income and BAS Services
    • SMSF Audits
    • Late Tax Returns
    • Early 2020 Tax Returns
  • Client Portal
  • Blog
  • About
    • Our People
    • Etax Local Website User Terms And Conditions
    • Etax Local Security and Privacy Statement
    • Frequently Asked Questions
  • Contact
  • Membership
    • Members’ Feedback
    • Member Login

Personal Australian Tax Rates

2018 Tax Rates Explained

With five different income brackets, the Medicare levy, the low income offset and hundreds of pages of tax laws, understanding personal Australian tax rates can be difficult.

There are some rules that take many taxpayers by surprise.

For example, you should know that the ATO classifies any interest you earn from savings or investments counts as part of your income.

The ATO tax rate applied to your income will vary, depending on your ‘annual taxable income’. This means money earned from employment plus other forms of income such as interest.

Australian Tax Rates for 2018 (2017-2018 tax year)

We’ve summarised Australian Tax rates for the 2017-2018 tax season below. Take a look to see which income band you are likely to be classified under.

  • $0-$18,200 = Nil tax
  • $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

While the above tax rates give you a rough idea of the amount of tax you will pay each year, you should be aware that the Medicare Levy and the Low Income Tax Offset also affect your tax payable.

Medicare Levy

There are some exemptions but in general, Australian tax residents pay a Medicare levy, which is calculated at a flat rate of 2% of a taxpayer’s taxable income over a certain level.

At time of writing the ATO stated:

  • You do not have to pay the Medicare levy if your taxable income is equal to or less than $21,655 ($34,244 for seniors and pensioners entitled to the seniors and pensioners tax offset).
  • You will pay only part of the Medicare levy if your taxable income is between $21,655 and $27,068 ($34,244 and $42,805 for seniors and pensioners entitled to the seniors and pensioners tax offset).
  • If you are single with no dependants and your taxable income is over $27,069 ($42,806 for seniors and pensioners entitled to the seniors and pensioners tax offset), you do not qualify for a Medicare levy reduction.

Low Income Tax Offset

As well as there being no tax on the first $18,200 there is also a low income tax offset.

The maximum value of the low-income tax offset is $445, with the reduction rate being decreased by 1.5 cents for each dollar of taxable income over $37,000.  If your income exceeds $66,667, no offset is available.

See below:

  • $0 – $37,000 =  $445
  • $37,001 – $66,666 = $445 less 1.5% of excess over $37,000
  • $66,667 and above = Nil

Taxation and calculating your Australian tax rates can be quite confusing. At Etax Local Accountants our aim is to take this confusion out of the equation. Our highly qualified accountants are very knowledgeable on all aspects of taxation in Australia and will make doing your taxes as easy as possible.


Need to sort out your personal tax strategy?

Talk to Etax Local today on 1300 174 689 or use our online contact form below.

Contact Us

[ninja_form id=2]

 

Primary Sidebar

Contact Us Today

GET A QUOTE

CLIENT LOGIN

Call: 1300 174 689

  • Company Tax Returns
  • Small Business Accounting
  • Small Business Start Up
  • Small Business Tax Returns
  • BAS Services
  • Trust Tax Returns
  • Partnership Tax Returns
  • Small Business Packages

Prefer to do your individual tax return yourself online?

Go to etax.com.au

Etax.com.au is our sister business, a self serve tax return for individual taxpayers. You enter your own details and deductions. Etax accountants review your return, provide tax agent advice as needed, then lodge to the ATO.

Company Tax Returns

keep your company tax returns up to date with Etax Local

BAS Services

Etax Local BAS Services

Small Business Tax Returns

Small business tax returns

SMSF Audit – keep your future on track

 [box]Getting in touch[/box]

[tabs style=”default”] [tab title=”Phone/Email”] 1300 174 689   |   [email protected][/tab] [tab title=”General Requests”]Service Requests are the primary means of contacting NSO. These should be raised for all requests relating to HR, EPM/login issues, business/cleint queries, fees and marketing approval.[/tab] [tab title=”Job Queries”]Job Notes should be used for or all requests relating to a particular job, including fee queries and advice. Use the job notes tab within each job.[/tab] [tab title=”Human Resources”]For all queries and requests regarding your contract or personal issues matters. please send a private message from your EPM profile messages tab to our Human Resources department. [/tab][/tabs]

[box]FAQs[/box]

[toggle title_open=”Accounting Software Access Instructions” title_closed=”Q: How do clients provide access to their accounting software?” hide=”yes” border=”yes” style=”default” excerpt_length=”0″ read_more_text=”Read More” read_less_text=”Read Less” include_excerpt_html=”no”][typography font=”Metrophobic” size=”14″ size_format=”px”]Help your clients provide access to their accounting software accounts. Download the following step-by-step guides:[/typography]

[ilink url=”https://pm.etax.com.au/StandardDocuments/DownloadDocument/227″ style=”download”]MYOB[/ilink]

[ilink url=”https://pm.etax.com.au/StandardDocuments/DownloadDocument/228″ style=”download”]QuickBooks[/ilink]

[ilink url=”https://pm.etax.com.au/StandardDocuments/DownloadDocument/229″ style=”download”]XERO[/ilink][/toggle]

[toggle title_open=”Close Me” title_closed=”Q: What services can I coordinate through Etax Local?” hide=”yes” border=”yes” style=”default” excerpt_length=”0″ read_more_text=”Read More” read_less_text=”Read Less” include_excerpt_html=”no”]It’s advisable to be across the services provided by Etax Local in order for you to fully utilise your Membership.

[box]Services you can coordinate through us include:[/box]

[unordered_list style=”bullet”]

  • Company tax returns
  • Business Activity Statements (BAS)
  • Partnership tax returns
  • Sole Trader tax returns
  • Previous years or late tax returns
  • Trust advice and trust tax returns
  • Business Start-Up and advice
  • Self-Managed Superfunds (SMSF)
  • Individual tax returns
  • General accounting
  • Bookkeeping

[/unordered_list]

[box]A Helping Hand[/box]

Etax Local can also undertake jobs that you would usually provide, if your circumstances change.

For example: if your workload increases temporarily, you’re planning a holiday or you are unwell.

Whatever the reason; Etax Local can always help by making sure your clients aren’t affected.[/toggle]

[toggle title_open=”Close Me” title_closed=”Q: What services does Etax Local NOT provide Members?” hide=”yes” border=”yes” style=”default” excerpt_length=”0″ read_more_text=”Read More” read_less_text=”Read Less” include_excerpt_html=”no”]There are certain services that Members are not authorised to offer through Etax Local.
[hr]

These include: [unordered_list style=”bullet”]

      • Statements of Position for Banks and other financial institutions.
      • Financial Statements where we are not the appointed Tax Agent.
      • Section 52 Forms (Certification of Business Operating Report by Certified Practicing Accountant).
      • Any form where we are required to certify that a client’s financial statements are accurate.
      • Financial recommendations of any kind.

[/unordered_list]
[hr]
If you are unsure about a request from a client, always contact Etax Local prior to providing an answer.[/toggle]

[toggle title_open=”Close Me” title_closed=”Q: What fees should I charge?” hide=”yes” border=”yes” style=”default” excerpt_length=”0″ read_more_text=”Read More” read_less_text=”Read Less” include_excerpt_html=”no”][box type=”info”]Please read our Etax Local Service Fees Section on this page, prior to setting and receiving client fees for an Etax Local service. [/box]

This area includes

[unordered_list style=”bullet”]

  • a standard fee schedule to assist members to quote for jobs
  • information about fee split percentages
  • and other important information regarding fees

[/unordered_list] [/toggle]

[toggle title_open=”Close Me” title_closed=”Q: Does Etax Local cover my insurance?” hide=”yes” border=”yes” style=”default” excerpt_length=”0″ read_more_text=”Read More” read_less_text=”Read Less” include_excerpt_html=”no”]Etax Local maintains Professional Indemnity Insurance that protects our people from liability related to the work and advice provided to clients. This professional indemnity cover extends to Members who have signed the latest Etax Local contractor agreement and who carry out services in accordance with the contractor agreement.

[box]Please read our Certificate of Currency[/box]

Important: You are responsible for maintaining your own insurance policies to cover public liability, workplace injury, third party motor vehicle and property cover and any other insurance needed to protect you (and the public). Your insurance should cover you personally and as a business entity (if applicable). These requirements are discussed in further detail in item 17 and item 18 of the Etax Local Contractor Agreement.[/toggle]

2017 Webinars

[toggle title_open=”Close Me” title_closed=”Etax Local – Tax updates and productivity tips 2017″ hide=”yes” border=”yes” style=”default” excerpt_length=”0″ read_more_text=”Read More” read_less_text=”Read Less” include_excerpt_html=”no”]

[/toggle]

Footer

About Etax Local

  • Home
  • About Etax Local
  • FAQs
  • Security and Privacy Statement
  • Member Login
  • Tax Return Checklists – free download
  • Personal Australian Tax Rates
  • Find an Etax Local Member

Business Services

  • Company Tax Returns
  • Small Business Accounting
  • Small Business Start Up
  • Small Business Tax Returns
  • BAS Services
  • Trust Tax Returns
  • Partnership Tax Returns
  • Small Business Packages
  • Individual Tax Returns
  • SMSF Tax Returns
  • Late Tax Returns

Accredited Members

Tax Agent
#39961005

Etaxlocal Pty Ltd is a CPA Practice

Quality Assurance

Protected by SSL Security

Partners and Associations

 

 

Copyright © 2022 · EtaxLocal Pty Ltd
Liability limited by a scheme approved under Professional Standards Legislation.