Tax Updates for the 2014-2015
Financial Year.
The following rates and changes apply to the 2014-15 financial year.
Individual Income Tax Rates not including the Medicare Levy of 2%:
- If your taxable income is between $0 and $18,200, you do not owe any tax
- If your taxable income is between $18,201 and $37,000, you owe 9c of tax for every dollar above $18,200
- If your taxable income is between $37,001 and $80,000, you owe $3,572 plus 32.5c for every dollar above $37,000
- If your taxable income is between $80,001 and $180,000, you owe $17.547 plus 37c for every dollar above $80,000
- If you have $180,001 or more of taxable income, you owe $54,547 plus 45c for every dollar earned above $180,000
Note: From 1 July 2014, a Temporary Budget Repair Levy of 2% has been added to the top marginal tax rate and is applicable to incomes above $180,000.
Medicare Levy
In order to fund Medicare, most taxpayers who are Australian residents are subject to a Medicare levy on their taxable income.
From 1 July 2014, the basic Medicare levy increased from 1.5% to 2%.
Taxpayers with the following income thresholds are either fully or partially exempt from the Medicare Levy:
- If your taxable income is between $0 and $20,542, you do not owe any tax.
- If your taxable income is between $20,543 and $24,167, you owe 10% of any amount over $20,542.
- If you have $24,168 or more of taxable income, you owe 2% of your total taxable income amount.
Taxpayers who claim the Senior Australian and Pensioner Tax Offset are subject to the following thresholds:
- If your taxable income is between $0 and $32,279, you do not owe any tax.
- If your taxable income is between $32,280 and $37,975, you owe 10% of any amount above $32,279.
- If you have $37,976 or more of taxable income, you owe 2% of your total taxable income amount.
Medicare Levy Surcharge (MLS)
You may be subject to the additional Medicare Levy Surcharge if you or you and your family do not have sufficient private patient hospital health insurance cover and your income fall above specific thresholds.
The thresholds for 2014-2015 are as follows:
Single Individuals
- If your income earned is between $0 and $90,000, your surcharge will be 0%.
- If your income earned is between $90,001 and $105,000, your surcharge will be 1%.
- If your income earned is between $105,001 and $140,000, your surcharge will be 1.25%.
- If your income earned is $140,001 or more, your surcharge will be 1.5%.
Families
- If your income earned is between $0 and $180,000, your surcharge will be 0%.
- If your income earned is between $180,001 and $210,000, your surcharge will be 1%.
- If your income earned is between $210,001 and $280,000, your surcharge will be 1.25%.
- If your income earned is $280,001 or more, your surcharge will be 1.5%.