Australian Income Tax Rates for 2016

Income tax brackets and tax rates used to calculate your tax refund or tax liability for 2016 tax season.

Income Tax Rates

Australian Residents

Income Level
Marginal Tax Rate
$0 to $18,200 Nil
$18,201 to $37,000 19c for each $1 over $18,200
$37,001 to $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 to $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54,547 plus 47c for each $1 over $180,000

Non-Residents

Income Level
Marginal Tax Rate
$0 – $80,000 32.5c for each $1
$80,001 – $180,000 $26,000+ 37c for each $1 over $80,000
$180,001 and over $63,000 + 47c for each $1 over $180,000
Low Income Tax Offset

Maximum Offset of $445
Offset phases out at a rate of 1.5% at incomes over $37,000 with the upper limit set at $66,667.

Medicare Levy

The standard Medicare Levy is 1.5% of your taxable income if your income is above the Medicare Levy Reduction threshold.

Medicare Levy Reduction Thresholds

Individual Income Thresholds

Low Threshold
High Threshold
Eligible for Senior Tax Offset: $33,738 $42,172
Eligible for Pensioner Tax Offset: $33,738 $42,172
All Other Taxpayers: $21,335 $26,668

Family Income Thresholds

Low Threshold
High Threshold
Eligible for Senior Tax Offset: $46,966 $58,707
All Other Taxpayers: $36,001 $45,002
Medicare Levy Surcharge

The standard Medicare Levy Surcharge is 1% of your taxable income and reportable fringe benefits if your income is above the Medicare Levy Surcharge thresholds.

Medicare Levy Surcharge Thresholds
Single Threshold:
$90,000
Family Threshold:
$180,000
Education Repayment

HECS-HELP debt Repayment Rate

Taxable Income
Repayment Rate
Below $54,126 Nil
$54,126 to $60,293 4%
$60,294 to $66,457 4.5%
$66,458 to $69,950 5%
$69,951 to $75,191 5.5%
$75,192 to $81,433 6%
$81,434 to $85,719 6.5%
$85,720 to $94,332 7%
$94,333 to $100,520 7.5%
$100,521 and above 8%

SFSS debt Repayment Rate

Taxable Income
Repayment Rate
Below $54,126 Nil
$54,126- $66,456 2%
$66,457-$94,331 3%
$94,332 and above 4%
Medical Expense Offset

20% tax offset on net medical expenses over $2,265.
10% tax offset on net medical expenses over $5,343.