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

Save & Exit

*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:

  • Up to $210,000 – tax-free
  • Excess above $210,000 – taxed at 47%

Taxed as follows:

  • Up to $210,000 – taxed at a maximum rate of 32%
  • Excess above $210,000 – taxed at 47%

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)

HELPING TAKE THE STRESS OUT OF TAX