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

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.

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