A quick look at Individual Income Tax rate 2012/2013

A quick look at Individual Income Tax rate 2012/2013

From the 2012/2013 year the tax-free threshold will lift up to the first $18,200 of your income. You will be able to earn up to $20,542 (from the 2012/2013 year) before any income tax is payable, when taking into account LITO. From the 2012/2013 year, your top tax rate can be expected to be 0%, 19%, 32.5%, 37% or 45% (plus Medicare levy)

Individual income tax rates
Year 2011/12 *		Year 2012/13		Year 2015/16   Proposed
Threshold $	Rate	Threshold $	Rate	Threshold $	Rate
6001	15	18201	19	19401	19
37001	30	37001	32.5	37001	33
80001	37	80001	37	800001	37
180001	45	180001	45	180001	45
Effective Tax - free threshold  $16000		Effective Tax - free threshold  $20542		Effective Tax - free threshold  $20979
LITO is $1500, withdrawl rate is 4% from $3000		LITO is $445, withdrawl rate is 1.5% from $3001		LITO is $300, withdrawl rate is 1% from $3002
*  For the 2011/2012 year only, if your taxable income is more than $50,000 then your income will also be subject to a flood levy. *  LITO - low income tax offset

Source: Adapted from information from the ATO website (www.ato.gov.au) - Individuals

Warning: While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), we do not accept responsibility for any loss suffered by any person arising from reliance on this information. This document is not financial product advice and does not take into account any individual's objectives, financial situation or needs.

For more information about tax rate or Individual Income Tax return,  please contact us or email  info@neweaccounting.com.au