No changes were announced in the Federal Budget in relation to personal income tax rates.
Personal income tax rates for the 2017-18 year will therefore remain the same as for the 2016-17 year (see table below).
Table 1: Tax Rates for 2017-18 income year
| Taxable income threshold range ($) | Resident individual 2017-18 marginal income tax rate (%) | Non-resident individual 2017-18 marginal income tax rate (%) |
|---|---|---|
| 0 – 18,200 | 0 | 32.5 |
| 18,201 – 37,000 | 19 | 32.5 |
| 37,001 – 87,000 | 32.5 | 32.5 |
| 87,001 – 180,000 | 37 | 37 |
| 180,001 + | 45 | 45 |
Temporary Budget Repair levy will expire
The Temporary Budget Repair levy of 2 per cent of taxable income in excess of $180,000 will automatically expire on 30 June 2017 under law that is currently in place. The Government has made no changes in this year’s Budget to extend the Temporary Budget Repair levy. Therefore, excluding the impact of the Medicare levy, from 1 July 2017, the top marginal tax income tax rate will be 45 per cent.
New financial year tax rates