Understanding Australian Residents' Tax Rates from 2015-16 to 2023-24

As an Australian resident, it's essential to understand your tax rates and obligations. In this article, we'll guide you through the changes in Australian residents' tax rates from 2015-16 to 2023-24.

Resident Tax Rates for 2015-16 to 2021-22

The Australian government has implemented various changes to resident tax rates over the years. The table below outlines the resident tax rates for each financial year:

* 2015-16: 19% (up to $37,000), 32.5% ($37,001-$80,000), 37% ($80,001-$180,000), and 45% (above $180,000) 'Temporary Budget Repair Levy of 2% applicable for incomes above $180,000'

* 2016-17: 19% (up to $37,000), 32.5% ($37,001-$80,000), 37% ($80,001-$180,000), and 45% (above $180,000) 'Temporary Budget Repair Levy ceased applying from July 1, 2017'

* 2017-18: 19% (up to $37,000), 32.5% ($37,001-$80,000), 37% ($80,001-$180,000), and 45% (above $180,000)

* 2018-19: 19% (up to $41,000), 32.5% ($41,001-$90,000), 37% ($90,001-$180,000), and 45% (above $180,000)

* 2019-20: 19% (up to $45,000), 32.5% ($45,001-$120,000), 37% ($120,001-$180,000), and 45% (above $180,000)

* 2020-21: 19% (up to $45,000), 32.5% ($45,001-$120,000), 37% ($120,001-$180,000), and 45% (above $180,000)

* 2021-22: 19% (up to $45,000), 32.5% ($45,001-$120,000), 37% ($120,001-$180,000), and 45% (above $180,000)

Resident Tax Rates for 2022-23 to 2023-24

The resident tax rates for the current financial years are as follows:

* 2022-23: 19% (up to $50,000), 32.5% ($50,001-$120,000), 37% ($120,001-$180,000), and 45% (above $180,000)

* 2023-24: 19% (up to $50,000), 32.5% ($50,001-$150,000), 37% ($150,001-$200,000), and 45% (above $200,000)

Medicare Levy

In addition to the resident tax rates, it's essential to note that the Medicare levy is payable at a rate of 2%. This means that your taxable income will be subject to an additional 2% in Medicare levy.

Using the Income Tax Estimator and Simple Tax Calculator

To work out your tax refund or debt estimate, you can use the Income Tax Estimator. Alternatively, you can use the Simple Tax Calculator to calculate just the tax you owe on your taxable income for the full income year.

Remember, these rates don't include the Medicare levy – see Income Thresholds and Rates for the Medicare Levy Surcharge for more information.

Who is Entitled to the Full Tax-Free Threshold?

You are entitled to the full tax-free threshold if:

* You are an Australian resident for tax purposes for the full year

By understanding your resident tax rates, you can better plan your finances and make informed decisions about your taxes. If you have any questions or concerns, it's always a good idea to consult with a tax professional or financial advisor.

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