Tax Rates 2018-2019

On this page we have collected the Australian tax brackets and tax rates for 2018-2019 and 2017-2018 tax years, and you’ll find information to determine if you are eligible to any tax offsets.

The 2018 financial year starts on 1 July 2018 and ends on 30 June 2019. The most significant changes are the introduction of the Low and Middle Income Tax Offset (LAMITO) and raising the marginal tax rate threshold for 32.5% tax bracket.

Low and Middle Income Tax Offset (LAMITO): from 1 July 2018 to 30 June 2022 is applied for Australians with a taxable income of less than $125,333. The Low Income Tax Offset (LITO) will continue to apply along with LAMITO.

Increase of the marginal tax rate threshold for 32.5% tax bracket: from 1 July 2018 the marginal tax threshold for the 32.5% tax bracket will be increased to $90,000.

2018-2019 Tax Rates for Residents

For residents, there are 5 tax brackets and 5 corresponding tax rates. The lowest rate is 0%, known as the tax-free rate for individuals on low incomes. The highest rate is 45%, which is applied above $180,000 annual income.

Low-income earner Australian residents are eligible for tax offset. Low Income Tax Offset (LITO) is applied if your annual income doesn’t exceed $66,667, and the maximum is $445. Low and Middle Income Tax Offset (LAMITO) have been introduced in the 2018 financial year, which is applied if your annual income doesn’t exceed $125,333, and the maximum tax offset is $530.

The below rates doesn’t include Medicare Levy.

Tax Rates for Residents
Taxable Income Tax Rate
$0 - $18,200 0.00%
$18,201 - $37,000 19.00%
$37,001 - $90,000 32.50%
$90,001 - $180,000 37.00%
$180,001 - 45.00%

Low Income Tax Offset
Taxable Income Tax Offset
$0 - $37,000 $445
$37,001 - $66,666 $445 - [(Taxable Income - $37,000) x 1.5%]
$66,667 - $0

Low and Middle Income Tax Offset
Taxable Income Tax Offset
$0 - $37,000$200
$37,001 - $48,000$200 plus 3 cents for each dollar over $37,000
$48,001 - $90,000$530
$90,001 - $125,333$530 less 1.5 cents for each dollar over $90,000

2018-2019 Tax Rates for Non-residents

Foreign residents are not eligible to claim the tax-free threshold. Generally, the ATO classifies a worker as non-resident if they have lived in Australia for less than 6 months in the fiscal year. For non-residents, there are 3 tax brackets and 3 corresponding tax rates. The lowest rate is 32.5%, and the highest rate is 45%.

Tax Rates for Non-residents
Taxable Income Tax Rate
$0 - $90,000 32.50%
$90,001 - $180,000 37.00%
$180,001 - 45.00%

2018-2019 Tax Rates for Working Holiday Maker Program

The Working Holiday Maker program is an exception to the above rates, which allows young adults (18 to 30) from eligible countries to work in Australia while having an extended holiday. Participants in the program must have 417 or 462 visas. From 1 January 2017, the first $37,000 of the visa holder is taxed at 15% rate. Above this rate the non-resident income rates applied.

Tax Rates for Backpackers
Taxable Income Tax Rate
$0 - $37,000 15.00%
$37,001 - $90,000 32.50%
$90,001 - $180,000 37.00%
$180,001 - 45.00%

Tax Rates 2017-2018

The 2017 financial year starts on 1 July 2017 and ends on 30 June 2018. The 2017 Budget didn’t make any changes to the personal income tax rates for residents. However, the Temporary Budget Repair Levy ceased to apply from 1 July 2017, which was an additional tax of 2% for high-income earners ($180,000+).

2017-2018 Tax Rates for Residents

For residents, there are 5 tax brackets and 5 corresponding tax rates. The lowest rate is 0%, known as the tax-free rate for individuals on low incomes. The highest rate is 45%, which is applied above $180,000 annual income.

Low-income earner Australian residents are eligible for tax offset. If your annual income doesn’t exceed $66,667, you will get the low-income tax offset. The maximum tax offset is $445, which applies if the taxable amount is $37,000 or less. This amount is reduced by 1.5% over $37,000.

Tax Rates for Residents
Taxable Income Tax Rate
$0 - $18,200 0.00%
$18,201 - $37,000 19.00%
$37,001 - $87,000 32.50%
$87,001 - $180,000 37.00%
$180,001 - 45.00%

Low Income Tax Offset
Taxable Income Tax Offset
$0 - $37,000 $445
$37,001 - $66,666 $445 - [(Taxable Income - $37,000) x 1.5%]
$66,667 - $0

2017-2018 Tax Rates for Non-residents

Foreign residents are not eligible to claim the tax-free threshold. Generally, the ATO classifies a worker as non-resident if they have lived in Australia for less than 6 months in the fiscal year. For non-residents, there are 3 tax brackets and 3 corresponding tax rates. The lowest rate is 32.5%, and the highest rate is 45%.

Tax Rates for Non-residents
Taxable Income Tax Rate
$0 - $87,000 32.50%
$87,001 - $180,000 37.00%
$180,001 - 45.00%

2017-2018 Tax Rates for Working Holiday Maker Program

The Working Holiday Maker program is an exception to the above rates, which allows young adults (18 to 30) from eligible countries to work in Australia while having an extended holiday. Participants in the program must have 417 or 462 visas. From 1 January 2017, the first $37,000 of the visa holder is taxed at 15% rate. Above this rate the non-resident income rates applied.

Tax Rates for Backpackers
Taxable Income Tax Rate
$0 - $37,000 15.00%
$37,001 - $87,000 32.50%
$87,001 - $180,000 37.00%
$180,001 - 45.00%