Australian Tax Summary Cheatsheet
PERSONAL INCOME TAX RATES
Residents 2019/2020
| Taxable Income | Tax on this income |
|---|---|
| 0 – $18,200 | MNil |
| $18,201 – $37,000 | 19c for each $1 over $18,200 |
| $90,001 – $180,000 | $20,797 plus 37c for each $1 over $90,000 |
| $180,001 and over | $54,097 plus 45c for each $1 over $180,000 |
*Medicare levy of 2% applies to most residents
Residents 2019/2020
| Taxable Income | Tax on this income |
|---|---|
| 0-$90,000 | 32.5c for each $1 |
| $90,001 – $180,000 | $29,250 plus 37c for each $1 over $90,000 |
| $180,001 and over | $62,550 plus 45c for each $1 over $180,000 |
*Medicare levy does not apply
COMPANIES
Income Tax Rate
| Financial Year | Aggregated Turnover Less Than: |
Company Tax Rate if Under the Threshol |
|---|---|---|
| 2018/2019 – 2019/2020 | $50 million* | 27.5% |
* if turnover exceeds this, or if more than 80% of the company’s income is passive, the tax rate is 30%
Private Company Loans (Division 7A)
– Benchmark Interest Rate
| 2017/2018 | 5.30% |
|---|---|
| 2018/2019 | 5.20% |
| 2019/2020 | 5.37% |
SUPERANNUATION
Contribution Caps 2018/2019 and 2019/2020
| Cap | Amount |
|---|---|
| Concessional | $25,000 |
| Non-Concessional | $100,000 |
| Non-Concessional Bring-Forward Over Three Years* |
$300,000 |
*Only available for under 65s
Superannuation Guarantee 2019/2020
- Rate – 9.5% of ‘ordinary time earnings’
(excludes overtime payments) - Maximum Contributions Base – $55,270 per quarter
DEPRECIATION
Instant Asset Write-Off Threshold 2019/2020
| Businesses with a turnover of less than $50 million | $30,000 |
| Uniform Capital Allowances system | $100 |
| Non-Business Taxpayers (e.g. landlord, employee, investor) |
$300 |
*Medicare levy does not apply
Motor Vehicles
| Year | Depreciation Cap |
|---|---|
| 2018/2019 | $57,581 |
| 2019/2020 | $57,581 |
Effective Life of Other Assets
- See Taxation Ruling TR 2019/5 (from 1 July 2019)
DEDUCTIONS AND ALLOWANCES
Cents per Km Rate 2019/2020
| Engine Capacity cc | Rate per km | |
|---|---|---|
| Ordinary Car | Rotary Engine Car | Cents |
| 0 – 1,600 | 0 – 800 | 68 |
| 1,601 – 2,600 | 801 – 1,300 | 68 |
| 2,601+ | 1,301+ | 68 |
*Up to a maximum of 5,000 business km per car
Overtime Meal Allowance
| Year | Reasonable Amount per Meal $ |
|---|---|
| 2018/2019 | 30.60 |
| 2019/2020 | 31.25 |
*Reasonable amount where an award overtime meal allowance is paid
CGT
Improvement Threshold
| Year | Amount |
|---|---|
| 2018/2019 | $150,386 |
| 2019/2020 | $153,093 |
Access to Small Business CGT Concessions
2018/2019 and 2019/2020
- Less than $2 million aggregated turnover, or
- Less than $6 million in net assets
TERMINATION OF EMPLOYMENT
Bona Fide Redundancies
When the employee is under 65, and is dismissed because their position itself no longer exists, the following concessional tax treatment may apply:
| Year of Payment | Tax-Free Limit |
|---|---|
| 2018/2019 | $10,399 + $5,200 for each year of completed service |
| 2019/2020 | 10,638 + $5,320 for each year of completed service |
ETPs
You may receive an employment termination payment because you are:
- Changing job
- Retiring early under an approved retirement scheme or bona fide redundancy
- Unable to work due to invalidity or permanent disability
- Dismissed, or
- Retiring
1. Life Benefit ETPs
For ETPs paid to a living person that are received on or after 1 July 2012, the part of the taxable component eligible for concessional treatment is now the lesser of:
- The ETP cap ($210,000 for 2019/2020) and
- The Whole of Income cap ($180,000) reduced by the other
taxable payments the employee received during the year. However, certain ETPs (referred to as “excluded payments”) remain eligible for concessional treatment up to the cap, namely the taxable portion of:
- A genuine redundancy payment
- An early retirement scheme payment
- An invalidity payment, or
- Compensation arising from a workplace dispute.
The tax on the taxable component of these payments depends on your age, as shown in the following tables:
Non-Excluded Life Benefits ETPs 2019/2020
| Recipient’s Age | Tax on Taxable Component |
|---|---|
| Under preservation age on the last day of the income year in which the payment is made | – Up to the lesser of ETP cap of $210,000 or Whole of Income cap of $180,000 less taxable income … taxed at a maximum rate of 32% – The excess is taxed at 47% |
| Preservation age or over on the last day of the income year in which the payment is made | – Up to the lesser of ETP cap of $210,000 or Whole of Income cap of $180,000 less taxable income … taxed at a maximum rate of 17% – the excess is taxed at 47% |
2. Death Benefit ETPs
| Components of employer death benefit | Tax treatment where paid to a ‘dependant’ | Tax treatment where paid to a ‘non-dependant’ |
|---|---|---|
| Tax-free component | Tax-free | Tax-free |
| Taxable component |
Taxed as follows:
|
Taxed as follows:
|
Taxation of Other Termination Payments
| Leave Type | Termination of Employment | Maximum Tax Rate* |
|---|---|---|
| Accrued Annual Leave | Resignation/Retirement | |
| To 17/8/1993 | 30% | |
| From 18/8/1993 | Marginal tax rate | |
| Accrued Long Service Leave | Resignation/Retirement | |
| To 15/8/1978 | 5% at Marginal tax rate | |
| 16/8/1978 to 17/8/1993 | 32% | |
| From 18/8/1993 | Marginal tax rate | |
| Genuine Redundancy/Invalidity/Early Retirement | ||
| To 15/8/1978 | 5% at Marginal tax rate | |
| From 16/8/1978 | 32% | |
Plus Medicare levy
FRINGE BENEFITS TAX 2018/2019 and 2019/2020
- Rate – 47%
- Lower Gross Up Rate – 2.0802
(employer entitled to a GST credit) - Higher Gross Up Rate – 1.8868
(employer not entitled to GST credit) - Reportable Fringe Benefit Threshold – $2,000
(minimum grossed up value of $3,773)