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?
In 2013-14 the Medicare Levy is applied on a progressive basis at the additional rate of 1.5%.

If eligible private health insurance cover is not maintained the Medicare Levy Surcharge adds a further levy of up to 1.5% depending on income.

There are low income and other full or partial medicare exemptions available. 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 and the calculation table see Low Income Tax Offset.

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 increased 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 Cap is lifted to $35,000 for older Australians
    • $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
    • To take advantage, make sure the super fund receives the money before 30 June 2014. 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 concessional contributions to be withdrawn and taxed at the individual’s marginal tax rate plus interest. There’s more information and links here.
  • With effect from 1 April 2014 and annually thereafter the private health insurance rebate percentage will adjusted by an inflation factor based on 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
Save tax on long service leave
Since 1993, long service and annual leave have been taxable at marginal tax rates. However when paid in a lump sum, and with some planning ahead, there are opportunities to achieve tax savings. See Long service and annual leave here..

 

This page was last modified on 23 April 2014