FAQs

What are the current individual tax rates?

If you are a resident individual, the following income tax rates apply for 2021 – 2022

Taxable Income	Tax on Column 1
0 – 18,200	Nil
18,201 – 45,000	19c on each dollar over $18,201
45,001 – 120,000	$5,092 plus 32.5 cents for each $1 over $45,000
$120,001 – $180,000	$29,467 plus 37 cents for each $1 over $120,000
180,001 and over	$51,667 plus 45 cents for each $1 over $180,000
Medicare Levy and HECS/HELP tax rates are not included in the above

 

If you are a non-resident individual, the following income tax rates apply for 2021 – 2022

Taxable Income	Tax on Column 1
0 – $120,000	32.5c on each dollar
$120,001 – $180,000	$39,000 plus 37 cents for each $1 over $120,000
180,001 and over	$61,200 plus 45 cents for each $1 over $180,000
Foreign residents are not required to pay the Medicare levy

 

If you are a working holiday maker (Visa subclass 417 or 462), the following income tax rates apply for 2021 – 2022

Taxable income	Tax on this income
0 – $45,000	15c on each dollar = 15%
$45,001 – $120,000	$6,750 plus 32.5 cents for each $1 over $45,000
$120,001 – $180,000	$31,125 plus 37 cents for each $1 over $120,000
180,001 and over	$53,325 plus 45 cents for each $1 over $180,000

 

 

When is my tax return due?

There are several possible dates depending on your circumstances and past lodgement history:

• October 31 – for those lodging themselves, and for those who have previously lodged late or currently have lodgements outstanding
• March 31 – for those whose latest return had a tax liability of at least $20,000
• May – 15 – for everybody else (must lodge through a tax agent to ensure no penalties)

 

What do I need to complete my tax return?

In order to complete your tax return, at the very least you will need to know your total income for the year in each category such as employment income, government payments, interest, capital gains, trust distributions and foreign income. You will also need evidence of any deductions you want to claim. If you have private health insurance, you will also need the statement sent to you from your insurance provider.

 

Please contact us for more specific advice personalised to your circumstances.

 

 

What can I claim in my tax return?

In general, you can claim expenses you have paid personally that were incurred in the course of earning your income and that were not reimbursed by your employer or another entity. This MAY include laundry and clothing, stationery, motor vehicle usage, telephone and internet usage, and many other things.

 

Please contact us for more specific advice personalised to your circumstances.

 

 

What are PAYG Instalments?

PAYG Instalments are pre-payments of your income tax. The ATO is likely to put you on the instalment system if your most recent tax return resulted in a tax payable position. The instalment amounts are determined by the ATO, but you can request to have them varied. Please contact us for assistance in doing this.

 

How do I pay my tax that’s due?

After your tax return is lodged with the ATO, they will assess it and send a Notice of Assessment with your taxable position. If that taxable position is a payable, there will be a payment slip on the bottom of the Notice of Assessment that can either be used to pay the tax at the post office, or online using the BPay details. Sometimes the ATO will also send out a Statement of Account with your Notice of Assessment, and the payment slip will be on this instead.

What are the company tax rates?

Company tax is payable from the first dollar of profit made. The following rates apply for the 2021-22 tax year:

 

Income category	Rate (%)
Company with turnover less than $25 million and are carrying on a business	25
All other companies	30

 

Please note that a bill was tabled in parliament in October 2017 that would change the “carrying on a business” test to an “80% passive income” test. This bill has not yet been passed. We will update this information if/when things change.

What is the tax rates for superannuation funds for 2021 – 2022?

Complying Superannuation Funds
Employer Contributions	15%
Superannuation Fund Investment Income	15%
Concessional Contributions	15%
Non-concessional contributions	0%
Government co-contributions	0%
Consolidation or transfer of superannuation	0%
Non-complying Superannuation Funds
All assets and income	45%

 

 

How much can I contribute to my superannuation fund in the 2021-22 year?

You can contribute the following to your superannuation fund, in the 2021-22 year:
Concessional Contributions	$27,500*
Non-concessional Contributions	$110,000 (provided you have less than $1.7 million in your superannuation fund)*

 

*As superannuation is a very complicated area of taxation and law, it is always best to seek advice on such matters from trained and experienced professionals. The above information is for general reference only and does not constitute any consideration of yours or your superannuation fund’s individual position.

 

Why is it important that my SMSF is compliant?

It is most important that your superannuation fund is compliant and remains compliant with taxation and superannuation law. Income of a complying superannuation is taxed at a rate of 15%. However, a non-complying superannuation fund is taxed at a rate of 45% on their assets and income (47% during the budget repair levy years).

It is also important to ensure your superannuation fund is compliant, as non-compliance can result in anything from education directions, trustee disqualification, right up to civil and criminal penalties, including jail.