Income Tax

Income tax is levied on taxable income, which is calculated as [assessable income] less [any allowable deductions]. Deductions include wages, cost of stock, rent, bad debts, and previous year losses.


INDIVIDUAL

You can use the tax tables to determine how much you are taxed.

Resident Tax Rates 2013-14

Taxable income

Tax on this income

$1 – $18,200 $0
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54,547 plus 45c for each $1 over $180,000

Non-Resident Tax Rates 2013-14

Taxable income

Tax on this income

$0 – $80,000 32.5c for each $1
$80,001 – $180,000 $26,000 plus 37c for each $1 over $80,000
$180,001 and over $63,000 plus 45c for each $1 over $180,000

MORE: See the ATO website for more information onIndividual Income Tax Rates.


 

COMPANY

A company is a distinct legal entity with its own income tax liability so a separate Company Tax Return must be completed for each company each year. A company’s income tax is calculated as a percentage of the taxable income that the company earned during the financial year. The company tax rate is 30%.

MORE:2013 Company Tax Return instructions are available on the ATO website.


PARTNERSHIP

A partnership running a business must complete a separate Partnership Tax Return can be prepared to show all income earned and deductions claimed for expenses during the course of the business and how the profit or loss was shared between the partners. Each partner pays tax on their share of the partnership’s income, or shares in a loss, so they must include their individual share of the net partnership profit or loss in their personal tax return.

MORE:2013 Partnership Tax Return instructions are available on the ATO website.


SOLE TRADER

Sole traders are not required to complete a separate return for their business. They use their personal income tax return to report their business income and deductions.