Tax & Insurance

Income Tax Rate Tables For Individuals & Companies In Australia: 2019 – 2024

  • Troy BurnsTroy Burns
  • Updated Dec 19, 2022

  • Mate Checked

    This information has been reviewed by our SMSF Mates before it was published as part of our review process.

We find it particularly difficult to locate the marginal tax rates for Australians in one place.

Individual Income Tax Rates

Below you will find the ATO published income tax rates for the 2019/2020 financial year.

We find these particularly misleading as it does not give you the full picture. Read on to see the actual income tax rates we Australians pay.

Income Tax rates for Individuals (residents) for 2019/2020

Income thresholds Tax rate Tax payable on this income
$0 – $18,200 0% Nil
$18,201 – $37,000 19% 19c for each $1 over $18,200
$37,001 – $90,000 32.50% $3,572 plus 32.5% of amounts over $37,000
$90,001 – $180,000 37% $20,797 plus 37% of amounts over $90,000
$180,001 and over 45% $54,097 plus 45% of amounts over $180,000

The Effective Income Tax Rates for 2019/2020

Based on the above table, and the following incomes, you would expect the following numbers if you were any normal human other than a tax accountant

Income thresholds Tax rate Tax Payable Effective 
$18,200 0% 0 0%
$37,000 19% $3,384 9%
$90,000 32.50% $20,797 23%
$180,000 37% $54,097 30%
$250,000 45% $85,597 34%
$500,000 45% $198,097 40%

The ACTUAL Income Tax Rates for 2019/2020

We are certain that you really only just care about money in your pocket, and so this table demonstrates the net effect of the Marginal Tax System, Offsets for Low Income Earns, Medicare Costs and the Division 293 Additional Tax on Super.

Income thresholds Tax  Super Medicare Net Pay Effective 
$18,200 0 $1,729 0 $18,200 0%
$37,000 $2,872 $3,515 $740 $33,388 10%
$90,000 $19,716 $8,550 $1,800 $68,484 24%
$180,000 $54,096 $17,100 $3,600 $122,304 32%
$250,000 $89,158 $23,750 $5,000 $155,841 38%
$500,000 $211,971 $47,500 $10,450 $277,579 44%

These tables don’t take into account a raft of other tax benefits and/or issues such as

  1. The Superannuation Cap
  2. The $25,000 Salary Sacrifice Superannuation offset
  3. Voluntary Superannuation contribution made after tax
  4. The over 65 $300,000 superannuation fund cap
  5. Non Residents or Working Holiday Makers including Visa 417, 462
  6. The No tax-free threshold on second jobs
  7. The Student Financial Supplement Scheme
  8. Private Healthcare
  9. Medicare Exemption
  10. Dependent Children & Spouse advantages (Married or De-Facto)
  11. Senior Australia Offset

Income Tax rates for Individuals (residents) for 2020/2021

Taxable income Tax rate Tax Payable
$0 – $18,200 0% Nil
$18,201 – $37,000 19% 19% for amounts over $18,200
$37,001 – $90,000 32.50% $3,572 + 32.5% for amounts over $37,000
$90,001 – $180,000 37% $20,797 + 37% for amounts over $90,000
$180,001 and over 45% $54,097 + 45% for amounts over $180,000

Source: ATO

Income Tax rates for Individuals (residents) for 2021/2022

Taxable income Tax rate Tax Payable
$0 – $18,200 0% Nil
$18,201 – $37,000 19% 19% for amounts over $18,200
$37,001 – $90,000 32.50% $3,572 + 32.5% for amounts over $37,000
$90,001 – $180,000 37% $20,797 + 37% for amounts over $90,000
$180,001 and over 45% $54,097 + 45% for amounts over $180,000

Source: ATO

Income Tax rates for Individuals (residents) for 2022/2023

Taxable income Tax rate Tax Payable
$0 to $18,200 0% Nil
$18,201 – $45,000 19% 19% for amounts over $18,200
$45,001 – $120,000 32.50% $5,092 + 32.5% for amounts over $45,000
$120,001 – $180,000 37% $29,467 + 37% for amounts over $120,000
$180,001 and over 45% $51,667 + 45% for amounts over $180,000

Source: ATO

Income Tax rates for Individuals (residents) for 2023/2024

Taxable income Tax rate Tax Payable
$0 to $18,200 0% Nil
$18,201 – $45,000 19% 19% for amounts over $18,200
$45,001 – $120,000 32.50% $5,092 + 32.5% for amounts over $45,000
$120,001 – $180,000 37% $29,467 + 37% for amounts over $120,000
$180,001 and over 45% $51,667 + 45% for amounts over $180,000

Source: ATO

Company Tax Rates

Income year Turnover Tax rate for “Base Rate” Entities Tax rate for all other companies
2017–18

$25m

27.5%

30.0%

2018–19 to 2019–20

$50m

27.5%

30.0%

2020–21

$50m

26.0%

30.0%

2021–22

$50m

25.0%

30.0%

Source: ATO

Company Tax Tates

Small Business Company Tax Rates

According to the ATO, you company needs to be a small business entity to be eligible for the lower company tax rate in the 2015–16 and 2016–17 income years.

For the 2016–17 income year, the ‘small business’ company tax rate was 27.5%.

What is considered a ‘small business entity’?

This lower rate applies to small businesses that have an aggregated turnover less than $10 million and are carrying on a business for all or part of the year.

Changes to the Company Tax Rate

For the 2017–18 income year and onwards, you need to be a base rate entity, rather than a small business entity to be eligible for the lower tax rate.

From the 2017–18 income year, companies that are base rate entities must apply the lower 27.5% company tax rate.

Who is considered a “Base Rate Entity” for Corporate Income Tax?

To be considered as a Base Rate entity, your company has an aggregated turnover less than the aggregated turnover threshold – which is $25 million for the 2017–18 income year and 80% or less of your assessable income is base rate entity passive income – this replaces the requirement to be carrying on a business.

Base rate entity passive income is:

  • corporate distributions and franking credits on these distributions
  • royalties and rent
  • interest income (some exceptions apply)
  • gains on qualifying securities
  • a net capital gain
  • an amount included in the assessable income of a partner in a partnership or a beneficiary of a trust, to the extent it is traceable (either directly or indirectly) to an amount that is otherwise base rate entity passive income.
General Advice Warning

Troy Burns

Non-Correlated Capital

Troy has more than 15 years investment and fund management experience, including management of hedge funds and multi-strategy funds. Troy has raised and managed over 300 million dollars in investments and has engaged and serviced over 150 high-net-worth clients for Non-Correlated Capital, the investment company which he serves as CEO and Portfolio Manager. Based out of Perth, Western Australia, Troy is one of the founders of SMSF Mate.

Troy’s educational qualifications include a Masters of Business Administration, Masters of Applied Finance, and Advanced Diploma, Financial Markets, completed at Charles Sturt University. Troy has also previously worked as a derivatives trader and the managing director of a civil engineering company.

You can find out more about Troy or connect with him on Linkedin here: https://www.linkedin.com/in/troy-burns-6652864/

Or visit his website here: https://noncorrelatedcapital.com

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