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ATO Tax Rates 2016-2017 Year (Non-Residents)

[9 May 2017] The 2017 Budget announcements contained a number of measures applicable to foreign investors – see here.

Arising from 2016 Budget the 32.5 cent tax band was expanded from $80,000 to $87,000 which is reflected in the table below.  The amending legislation is here.

The 2016-17 fiscal year starts on 1 July 2016 and ends on 30 June 2017.

Non-resident Tax scale 2016-17
Taxable income Tax on this income
$0 – $87,000 32.5c for each $1
$87,001 – $180,000 $28,275 + 37c for each $1 over $87,000
$180,001 and over $62,685 + 47c * for each $1 over $180,000

(*) Includes the Temporary Budget Repair Levy of 2%

Temporary Budget Repair Levy on higher income earners 2014-15 to 2016-17

The Federal Budget 2014-15 contained a proposal for a Temporary Budget Repair Levy of 2% of taxable incomes in excess $180,000. This effectively increases the highest marginal tax rate in the table above from 45% to 47% and takes effect for 3 years from 1 July 2014 until 30 June 2017. The Levy legislation became law on 25 June 2014.

Medicare Levy

Non-residents do not pay the Medicare Levy.

Annual vacancy fees for foreign owners

In a 2017 budget measure, an annual vacancy fee for foreign owners of residential real estate is to be introduced where residential property is not occupied or genuinely available on the rental market for at least 6 months in a 12 month period.

The fee applies from 7:30PM (AEST) on 9 May 2017. The fee is that which was payable at the time of the foreign investment application.

Legislation has been approved by parliament. See Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 and Foreign Acquisitions and Takeovers Fees Imposition Amendment (Vacancy Fees) Bill 2017

The Australian Tax Office is to administer the charge. See FIRB Guidance here.

See also  Foreign Investment in Australia Policies

This page was last modified 2020-04-14