ATO Tax Rates 2021

Tax Rates 2020-2021 Year (Residents)

The 2021 financial year starts on 1 July 2020 and ends on 30 June 2021. The financial year for tax purposes for individuals starts on 1st July and ends on 30 June of the following year.

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The 2018 Budget announced a number of adjustments to the personal tax rates taking effect in the tax years from 1 July 2018 through to 1 July 2024. The legislation is here.

The modified rates are reflected in the table below (32.5% ceiling lifted from $87,000 to $90,000) and apply for the 4 years from 1 July 2018 to 30 June 2022.

Taxable IncomeTax On This Income
 0 to $18,200 Nil
 $18,201 to $37,000 19c for each $1 over $18,200
 $37,001 to $90,000 $3,572 plus 32.5c for each $1 over $37,000
 $90,001 to $180,000 $20,797 plus 37c for each $1 over $90,000
 $180,001 and over $54,097 plus 45c for each $1 over $180,000

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The above tables do not include Medicare Levy or the effect of any Low Income Tax Offset (“LITO”). Medicare Levy is applied on a progressive basis 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.

Entitlement to the low and middle income tax offsets

Under Budget 2018 proposals a new Low and Middle Income Tax Offset (LMITO) is to operate from 1 July 2018 to 30 June 2022 in addition to the existing Low Income Tax Offset (LITO).  From 1 July 2022 a new low income offset of up to $645 will replace LITO and LMITO.

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This page was last modified 2018-06-21