ATO Tax Rates 2014

 

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ATO Tax Rates 2013-2014 Year (Residents)

The 2014 financial year starts on 1 July 2013 and ends on 30 June 2014. The tax free thresholds and brackets for 2014 are unchanged from the previous tax year.

If you are looking for the 2013-2014 PAYG tax instalment tables go here: Tax Tables

Personal Tax Rates 2013-14 (Residents)

Taxable income Tax on this income*
0 – $18,200 Nil
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54,547 plus 45c for each $1 over $180,000

 

* The above table does not include Medicare Levy or the effect of any Low Income Tax Offset (“LITO”).

Medicare LevyLow Income Tax Offset ('LITO')What's New in 2013-14?
The Medicare Levy is applied on a progressive basis at the additional rate of 1.5%, or 2.5% if eligible private health insurance cover is not maintained. There are low income and other full or partial medicare exemptions available. A Medicare Levy Surcharge may also be applicable.

For more information and calculation details, see Medicare Levy and Medicare Levy Surcharge

The Low Income Tax Offset full amount in 2013-14 is $445 reducing by 1.5 cents in the dollar for every dollar of income over $37,000, such that it cuts out at income of $66,667.

The effect is that no tax is payable up to an income of $20,542.

For more information go to Low Income Tax Offset. The LITO calculation table is here.

What’s New in 2013-14?

(significant announcements – not exhaustive)

The basic tax scale is the same as the previous year, as is the Low Income Tax Offset. Likewise the medicare levy, and medicare levy surcharge rates are unchanged, however the various income tests are inflation-adjusted each financial year.

  • Occupational superannuation guarantee contributions percentage increase to 9.25% with effect from 1 July 2013 – see Superannuation Guarantee
  • Superannuation – Low Income Superannuation Contribution (“LISC”) is to be abolished from 1 July 2013 as part of the Mining Tax repeal package of measures – see LISC
  • Removal of the upper age limit (employees aged 70 and over) on employer superannuation guarantee contributions from 1 July 2013 – see Super Guarantee age limits
  • Superannuation Contribution Caps is lifted to $35,000 for older Australians -the concessional contributions cap will be lifted to
    • $35,000 unindexed for people aged 59 or more on 30 June 2013 (up from $25,000) with effect from 1 July 2013, and
    • $35,000 unindexed for those aged 49 or more on 30 June 2014 from 1 July 2014
      • (This is a reversal of a previous government commitment to restore the cap to $50,000 for the over 50s from 1 July 2014. This means that the general cap for all age groups will converge by indexation towards the same figure of $35,000 expected by the 2018 year.) For more on this and the caps generally see Contributions Caps
  • The superannuation excess contributions rules are somewhat softened with effect from 1 July 2013 by allowing excess contributions to be withdrawn (subject to conditions) to be taxed at the individual’s marginal tax rate plus interest. There’s more information and links here.
  • From 1 July 2013 the private health insurance rebate will not be paid on any LHC (Lifetime Health Cover) loading which has been included in the health insurance policy premium amount. There’s more information about this rebate here.
  • For Tax Agents - New Lodgment Program Framework commences with effect from 1 July 2013.
  • See also – Federal Budget 2013-14 (from the outgoing Labor Government)
  • See also – Mid Year Economic & Fiscal Outlook 2013-14 (from the new Coalition Government elected September 2013)
Tax Free Income
Tax Free IncomeAmounts that you don’t pay tax on can fall into three categories.

They are:

        • exempt income
        • non-assessable non-exempt income, and
        • other non-taxable amounts which don’t affect your tax return.

We’ve made a list of common examples of non-taxable items – read more here..

Free tax return checklists

A personal income tax return checklist is useful in ensuring that all the bases are covered when preparing a tax return. Details here

Free Tax Returns
free-tax-returnThere are a couple of ways to get free tax return help, or to obtain free resources to Do-It-Yourself.

DIY is not recommended if you have complex tax affairs, but for relatively straight-forward circumstances there are resources freely available if you know where to look.

We have a brief run-down to get started. Read here..

Free Spreadsheet Calculator
Our simple spreadsheet income tax calculator is updated annually and is free to download – available here

 

This page was last modified on 17 March 2014