2012 to 2013 tax rates

Comparing 2012 vs 2013 tax rates reveals a number of changes to the tax brackets

Most of the adjustments to the personal income tax rules which commence for the 2012-13 financial year have been summarised under the heading “What’s New For 2012-13?” on the [popup url=”/individual-tax-rates-resident/ato-tax-rates-2013#new2013″ width=”950″ height=”500″]2013 tax rates page.[/popup] ([popup url=”/individual-tax-rates-resident/ato-tax-rates-2012#new2012″ width=”950″ height=”500″]2011-12 here[/popup]).

Caution: The 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:

  1. A lift in the basic tax free threshold from $6,000 to $18,200.
  2. Increases in the marginal tax rates for each income bracket.
  3. 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.

2011-122012-13
Taxable incomeTax on this incomeTaxable incomeTax on this income
0 – $6,000Nil0 – $18,200nil
$6,001 – $37,00015c for each $1 over $6,000$18,201 – $37,00019c 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.

2011-122012-13 
Taxable IncomeLITO OffsetTaxable IncomeLITO 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 overNil $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 incomeTax Payable
2011-122012-13Tax “Saved”
$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