Tax updating
Individual income tax rates
| Taxable income | Tax on this income |
|---|---|
| 0 – 18,200 | Nil |
| 18,201 – 45,000 | 19c for each $1 over 18,200 |
| 45,001 – 120,000 | 5,092 plus 32.5c for each $1 over 45,000 |
| 120,001 – 180,000 | 29,467 plus 37c for each $1 over 120,000 |
| 180,001 and over | 51,667 plus 45c for each $1 over 180,000 |
Medicare levy
The Medicare levy is an amount you pay in addition to the tax you pay on your taxable income.
The Medicare levy helps fund some of the costs of Australia’s public health system known as Medicare. The Medicare levy is 2% of your taxable income
Assessable income
Most of the income you earn will be assessable income. Assessable income is income that you pay tax on, if you earn enough to exceed the tax-free threshold. Examples of assessable income you must declare include:
- salary and wages
- tips, gratuities and other payments for your services
- some allowances, such as for clothing and laundry
- interest from bank accounts
- dividends and other income from investments
- bonuses and overtime an employee receives
- commission a salesperson receives
- pensions
- rent.
You may also receive some income in the form of goods or services instead of money. You need to declare the market value of these goods or services as assessable income in your tax return. For example, you may receive clothing, makeup, tools, or accessories from subscribers or fans of your online platforms, or businesses looking to work with you.
If you receive your income as cash including cash cheques, you must declare the cash as income in your tax return.
Taxable income
Your taxable income is your assessable income minus any allowable deductions. Your taxable income is used to work out how much tax you need to pay.
Assessable income − allowable deductions = taxable income
Allowable deductions don’t directly reduce the amount of tax you pay, they reduce your taxable income, which in turn reduces the amount of tax you need to pay
Exempt income from a scholarship
For a scholarship payment to be exempt from paying tax, you must meet all of the following conditions:
- The payment can’t be an excluded government payment (for example, Austudy, Youth Allowance or ABSTUDY).
- There is no requirement for you to do work (either as an employee or contract for labour, now or in the future).
- You are a full-time student at a school, college or university.
- The scholarship is provided to you principally for educational purposes.
Reference:
https://www.ato.gov.au/Individuals/Income-deductions-offsets-and-records/Income-you-must-declare/Taxable-assessable-and-exempt-income/?anchor=Taxableincome#Taxableincome
https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/income-you-must-declare/scholarships-prizes-and-awards/scholarship-payments/