The resident tax rates (excluding Medicare Levy) effective from
1 July 2009 are as follows:
Tax Rates 2009-10
Tax On This Income
$0 – $6,000
$6,001 – $35,000
15c for each $1 over $6,000
$35,001 – $80,000
$4,350 plus 30c for each $1 over $35,000
$80,001 – $180,000
$17,850 plus 38c for each $1 over $80,000
$180,001 and over
$55,850 plus 45c for each $1 over $180,000
These rates are the same as the previously announced
Medicare Levy – Low Income Threshold
From 1 July 2009, the Medicare levy low-income threshold will
increase to $17,794 (up from $17,309) for singles and to $30,025
(up from $29,207) for couples.
For families, the additional amount of threshold for each
dependent child or student will also be increased to $2,757 (up
The Medicare levy low-income threshold for pensioners below Age
Pension age will also be increased from $22,922 to $25,299.
Family Tax Benefits
Higher income thresholds for family payments will be paused at
current levels for three years until July 2012. This will
reduce the growth in family payments to those at the higher end of
the income scale.
From 1 July 2009 for a period of three years:
the Family Tax Benefit Part B primary earner income threshold
will remain at $150,000;
the income threshold for receiving dependency tax offsets will
remain at $150,000;
the Baby Bonus eligibility threshold will remain at $75,000
family income in the six months following the birth or adoption of
a child (equivalent to $150,000 a year); and
the higher income free area of Family Tax Benefit Part A will
The Family Tax Benefit Part A lower income free threshold
(currently $42,559) and the Family Tax Benefit Part B secondary
earner income threshold (currently $4,526) will continue to be
indexed annually in line with increases in the costs of living.
Private Health Insurance
From 1 July 2010, the Government will introduce three new
'Private Health Insurance Tiers' – so that higher
income earners receive less 'carrot' and more
'stick' to be insured:
Tier 1: for singles earning more than $75,001 (couples
$150,001), the Private Health Insurance Rebate will be 20 per cent
for those up to 65 years (25 per cent for those over 65, and 30 per
cent for those over 70 years).
Surcharge: Remains 1%
Tier 2: for singles earning more than $90,001 (couples
$180,001), the Private Health Insurance Rebate will be 10 per cent,
for those up to 65 years (15 per cent for those over 65, and 20 per
cent for those over 70 years).
Surcharge: Increased to 1.25 per cent.
Tier 3: for singles earning more than $120,001 (couples
$240,001), no Private Health Insurance Rebate will be
Surcharge: Increased to 1.5 per cent.
All income thresholds would continue to remain indexed
Skilled Migration Levels Reduced
The Australian Government has further cut the permanent skilled
migrant intake to 108,100 places for the 2009/10 Migration
In March, the Government cut the 2008–09 permanent
skilled migration intakes by 14 per cent from 133,500 to 115,000.
This reduction to 108,100 places represents an overall drop of
almost 20 per cent on previous planning levels.
In addition to the cutback in places, the Government will be
increasing the English language level required for trades-related
occupations and introduce a targeted skills-testing regime to
ensure that migrants have both the language and skills needed to
participate in the labour market.
Foreign Investment Funds
The Government will repeal the FIF provisions and replace them
with a specific, narrowly-defined anti avoidance rule. Once more
information regarding the draft legislation has been released, we
will keep you informed.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The income tax treatment of any property lease incentive will vary, depending on the nature of the inducement provided.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).