Tax Facts
TAX FACTS to remember during the 2023 financial year:
- The Income Tax Rate for individual resident from 1 July 2022 will be:
TAXABLE INCOME |
TAX PAYABLE |
0 - $18,200 |
Nil |
$18,201 - $37,000 |
19% of excess over $18,200 |
$37,001 - $90,000 |
$3,572 plus 32.5% of excess over $37,000 |
$90,001 - $180,000 |
$19,822 plus 37% of excess over $87,000 |
$180,001 and over |
$54,232 plus 47% of excess over $180,000 |
* Excluding the 2% Medicare Levy
- The Medicare Levy Surcharge threshold starts at $90,000 for a single income earner (couples over $180,000 and applies to income earners who have no private medical insurance and surpass the following income limits:
TAXABLE INCOME |
TAXABLE INCOME |
MEDICARE LEVY SURCHARGE |
Single |
Couples/ Families |
- |
Less than $90,000 |
Less than $180,000 |
0% |
$90,001 - $105,000 |
$180,001 - $210,000 |
1.0% |
$105,001 - $140,000 |
$210,001 - $280,000 |
1.25% |
More than $140,001 |
More than $280,001 |
1.5% |
- The Fringe Benefit Tax rate will be 47% until 31 March 2023
- The zone tax offset is only available if you reside or work in a specified remote area for more than 183 consecutive days in an income year.
- If your partner earns less than $37,000 pa and you decide to deposit over $3,000 in your spouse’s superfund, you will receive an 18% rebate in your tax return.
- If your income exceeds $48,361 you will have to pay back any HELP/HECS debt. You may prefer to pay gradually during the year and advise your payroll office of your choice to voluntarily increase your tax deductions. Graduates who reside overseas for more than 6 months will be required to repay their HELP debt if their worldwide income exceeds the above amount.
- Please keep your receipts for all donations, tool purchases, protective clothing, rental property expenses and education expenses during the year.
- If you are eligible to deduct car travel please ensure you keep a log book and receipts. Travel to and from work is not deductible unless you carry tools onboard a ute. A flat rate of $0.75 applies to all engine sizes for work-related car expenses.
- If you are paying Child Support we need to include this in your tax return.
- VISA holders must obtain their Medicare Exemption Application PRIOR to lodging their Tax Return. Please be aware that processing of the Medicare Exemption Application can take up to 2 months. We advise our clients to lodge their forms very early in July before making an appointment with us. If you wish for us to lodge the Exemption Application there is a fee involved.
- The maximum concessional superannuation contribution (deductible) is $27,500 pa.
- The maximum non-concessional superannuation contribution (non-deductible) is $110,000 pa.
- The Government co-contribution to superannuation contribution for income earners below $42,016 is $500. This reduces marginally up to a maximum income of $57,016.
- The Self-Managed Super Fund Levy for existing funds is $259 and $518 for newly established funds.
- The Employer Superannuation Guarantee Contribution is at 10.5% after 1 July 2022. It then progressively increase to 12% by the 2025/26 tax year.
- As of 1st July 2019 employers have to report wages to their employees with each payroll run. The new Single Touch Payroll system will allow the ATO to match wages against Superannuation payments and it also give employees access to their running income and super balances via their MyGov account.
- Employers also need to contribute superannuation guarantee contribution for people aged 65 or over.
- Business with turnover below $10 millions are still able to access a range of Small Business Tax Concession (Please consult with us prior to any major transactions).
- The instant write off for small businesses continues until 30 June 2023. Contact us to determine whether you are eligible please.