The Government announced that it will adjust the personal income tax rates and thresholds that apply to non-residents’ Australian income. From 1 July 2012, the first 2 marginal tax rate thresholds will be merged into a single threshold. The marginal rate for this threshold will align with the second marginal tax rate for residents (32.5%) and will apply to all taxable income below $80,000. From 1 July 2015, the same marginal rate will again rise from 32.5% to 33%.
The tax rates for non-residents that will apply for the 2012-13 and 2013-14 years are:
2012-13 and 2013-14 income years
| Taxable income $ | Tax payable $ |
| 0 – 80,000
80,001 – 180,000 180,001+ |
32.5%
26,000 + 37% of excess over 80,000 63,000 + 45% of excess over $180,000 |
The tax rates for non-residents that will apply for the 2014-15 income year (ie from 1 July 2015) are:
2014-15 and later income years
| Taxable income $ | Tax payable $ |
| 0 – 80,000
80,001 – 180,000 180,001+ |
33%
26,400 + 37% of excess over 80,000 63,400 + 45% of excess over $180,000 |
[WTB 19, 8/5]