Tax Rates 2021-2022 Year (Residents)

The 2021 financial year starts on 1 July 2021 and ends on 30 June 2022. The financial year for tax purposes for individuals starts on 1st July and ends on 30 June of the following year.

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.

Tax scale 2021-22

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

 

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

Budget 2018 proposals provide for 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