2014 – 2015 tax rates

Total Tax Payable = Taxable Income x Tax Rates – Rebates – Other Tax Offsets – Imputation Credits + Medicare Levy on taxable income
Resident Individuals – Rates 2014 – 2015

Taxable Income ($) Tax Payable ($)
0 – 18,200 Nil
18, 201 – 37,000 Nil + 19% over $18,200
37,001 – 80,000 $3,572 + 32.5% over $37,000
80,001 – 180,000 $17,547 + 37% over $80,000
Over 180,000 $54,547 + 47% over $ 180,000

* This includes the introduction of the 2% temporary Budget Repair Levy on income earners over $180,000. The levy will be imposed for the next 3 years until 30 June 2017.
* A tax offset of $445 is available to taxpayers with less than $37,000 taxable income. It phases out at $66,667.

Unearned income of resident minors under 18 not in full time employment

$ Unearned Income $ Tax Payable
0 – 416 Nil
417 – 1,307 Nil + 66% over $416
Over 1,307 45% flat

Minors can effectively only receive $416 tax free.

Medicare Levy has increased to 2% from 1 July 2014.
Still subject to low income thresholds. Medicare Levy Surcharge (MLS) applies unless taxpayers have private hospital cover. For individuals, the MLS is 1% for income >$88,000, 1.25% for income >$102,000 and 1.5% for income >$136,000. For families, the MLS is 1% for income >$176,000, 1.25% for income >$204,000 and 1.5% for income >$272,000.

Net Medical Expenses tax offset

From 1 July 2014 those taxpayers who received the offset in the 2013-14 income year will continue to be eligible for the offset for the 2014-15 income year if they have eligible out of pocket expenses above the relevant threshold. The offset will continue to be available for taxpayers with out of pocket medical expenses relating to disability aids, attendant care or aged care expenses until 1 July 2019.

Non-Resident Individuals – Rates 2014 – 2015

$ Taxable Income $ Tax Payable
0 – 80,000 32.5c for each $1
80,001 – 180,001 $26,000 + 37% over $80,000
Over 180,000 45% flat

* This includes the introduction of the 2% temporary Budget Repair Levy on income earners over $180,000. The levy will be imposed for the next 3 years until 30 June 2017.

Company Tax Rate 30% of taxable income for year 2014/2015

PAYG instalments or individuals, companies and superannuation funds with an instalment rate from the ATO, the quarterly payment dates for 30 June balancing taxpayers are:

End of quater General payment information
30 September 2014 28 October 2014
31 December 2014 28 February 2015
31 March 2015 28 April 2015
30 June 2015 28 July 2015

PAYG instalments in 2014/2015 increased by 4% based on prior year earnings.

Private Health Insurance Rebate

From 1 July 2014 the private health insurance rebate will be reduced based on income as follows:
Private Health Insurance Incentives Tiers (2014-2015) with effect 1 July 2014 – 31 March 2015

Singles ≤ $90,000 $90,001-105,000 $105,001-140,000 ≥ $140,001
Families ≤ $180,000 $180,001-210,000 $210,001-280,000 ≥ $280,001
Rebate
< age 65 29.040% 19.360% 9.680% 0%
Age 65-69 33.880% 24.200% 14.520% 0%
Age 70+ 38.720% 29.040% 19.360% 0%

The private health insurance rebate is indexed annually on 1 April each year.
The rebate from 1 April 2015 will be determined in early 2015.

Foreign losses can be used against Australian income.
A limit on FITC applies.

Fringe benefits tax rate 47%
Payment dates for installments based on notional or estimated tax liability are:

28/07/14 28/10/14 28/02/15 28/04/15

Where the previous year’s FBT liability is below $3,000 a single payment is due on 28/05/15.

Statutory benchmark interest rate for FBT – 5.95%
Statutory FBT Car Fringe Benefits rate change– effective 10 May 2011

Distance Travelled during the FBT year Existing contracts (%) New contracts from 1 April 2012 (%) New contracts from 1 April 2013 (%) New contracts from 1 April 2014 (%)
0 – 14,999km 26 20 20 20
15,000km – 25,000km 20 20 20 20
25,000km – 40,000km 11 17 20 20
More than 40,000km 7 13 17 20

Motor Vehicle Expense Deductions

Cents Per km Method 12% of Original Value Method One Third Actual Expenses Method Log Book Method
Eligibility Requirements None Business use must exceed 5,000 km Business use must exceed 5,000 km Car must be held
Expense base Business km’s travelled Multiply by x cents for each km Original value multiply by 12% Total vehicle expenses multiply by 33% Total vehicle expenses multiply by business use percentage
Do you have to substantiate the expenses? No (reasonable estimate of business km travelled). No Yes (written evidence of expenses) Yes (written evidence of expenses)

– A maximum of 5,000 km can be claimed using the cents per km method.
– A log book must be kept for a continuous 12 week period, and can be used for 5 years.
– The motor vehicle depreciation cost limit is $57,466.

Click here to download a copy of this tax card