Comparing 2012 vs 2013 tax rates reveals a number of changes to the tax brackets
Comparisons on this page are for general interest only, and cannot accurately represent any individual tax outcome because of the assumptions made, and the complexity and vast array of choices and circumstances applicable to each taxpayer’s tax position.
The main adjustments to the basic scale of personal income tax rates which took effect from 1 July 2012 were:
- A lift in the basic tax free threshold from $6,000 to $18,200.
- Increases in the marginal tax rates for each income bracket.
- A reduction in the value of the Low Income Tax Offset (“LITO”).
Note also that the Flood Levy was only applicable in 2011-12 at the rate of 0.5% on incomes over $50,000, and 1% of incomes over $100,000.
The basic tax scales compared
A side-by-side comparison of the basic tax scales (residents) – ignoring the medicare and flood levies – for the two years is as follows. (New values for 2013 are highlighted). The first-step threshold has been significantly lifted (by $12,200 to $18,200) and higher steps substantially the same. But the marginal tax rates have been lifted.
2011-12 | 2012-13 | ||
Taxable income | Tax on this income | ||
0 – $6,000 | Nil | 0 – $18,200 | nil |
$6,001 – $37,000 | 15c for each $1 over $6,000 | $18,201 – $37,000 | 19c for each $1 over $18,200 |
$37,001 – $80,000 | $4,650 plus 30c for each $1 over $37,000 | $37,001 – $80,000 | $3,572 plus 32.5c for each $1 over $37,000 |
$80,001 – $180,000 | $17,550 plus 37c for each $1 over $80,000 | $80,001 – $180,000 | $17,547 plus $37c for each $1 over $80,000 |
$180,001 and over | $54,550 plus 45c for each $1 over $180,000 | $180,001 and over | $54,547 plus 45c for each $1 over $180,000 |
The low income tax offsets compared
A side-by-side comparison of the Low Income Tax Offset calculators for the two years is as follows. The full value of LITO has been reduced from $1,500 to $445, the income thresholds and withdrawal rates changed.
2011-12 | 2012-13 | ||
Taxable Income | LITO Offset | ||
0 – $30,000 | $1,500 | $0 – $37,000 | $445 |
$30,001 – $67,500 | $1,500 – [(taxable income – $30,000) x 4%] | $37,001 – $66,667 | $445 – [(taxable income – $37,000) x 1.5%] |
$67,500 and over | Nil | $66,667 and over | Nil |
Comparison tax calculations 2012 vs 2013
The combination of adjusted thresholds, marginal rates and the LITO changes net off at various income levels to tax savings amounts shown in the following table. Example comparison calculations are inclusive of the Low Income Tax Offset and Flood Levy (but not Medicare Levy or anything else):
Taxable Income | Tax Payable | ||
2011-12 | 2012-13 | ||
$20,000 | $600 | $nil | $600 |
$30,000 | $2,100 | $1,797 | $303 |
$40,000 | $4,450 | $4,147 | $303 |
$50,000 | $7,850 | $7,547 | $303 |
$60,000 | $11,300 | $10,947 | $353 |
$70,000 | $14,650 | $14,297 | $353 |
$80,000 | $17,700 | $17,547 | $153 |
$90,000 | $21,450 | $21,247 | $203 |
$100,000 | $25,200 | $24,947 | $253 |
$110,000 | $29,000 | $28,647 | $353 |
$120,000 | $32,800 | $32,347 | $453 |
$130,000 | $36,600 | $36,047 | $553 |
$140,000 | $40,400 | $39,747 | $653 |
$150,000 | $44,200 | $43,447 | $753 |
$160,000 | $48,000 | $47,147 | $853 |
$170,000 | $51,800 | $50,847 | $953 |
$180,000 | $55,600 | $54,547 | $1,053 |
$190,000 | $60,200 | $59,047 | $1,153 |
$200,000 | $64,800 | $63,547 | $1,253 |
To further check these calculations and to include the effect of Medicare Levy and Surcharge, you can download our free spreadsheet tax calculator here.
This page was last edited on 4 May 2013