Australia's Future Tax System

Architecture of Australia's tax and transfer system

2.11 Additional tax and transfer tables

Table 2.9: Australian government taxes as at 1 July 2008

Tax Tax base Tax rates Taxpayers and collection points
Income taxation —resident individuals Taxable income of resident individuals Marginal rate Thresholds Employer PAYG, ATO
    0% $0‑$6,000  
    15% $6,001‑$34,000  
    30% $34,001‑$80,000  
    40% $80,001‑$180,000  
    45% $180,001+  
Low Income Tax Offset Taxable income of resident individuals Maximum amount of $1,200. Reduces by 4 cents for every dollar of income over $30,000. This results in an effective tax free threshold of $14,000 for those eligible.  
Medicare levy Taxable income of resident individuals 1.5% Payable if income exceeds a threshold which varies between singles, couples, pensioners and seniors. Phases in at 10% over some income ranges.  
Medicare levy surcharge Taxable income of resident individuals without private patient hospital insurance 1% Payable if income exceeds a threshold which varies between singles and couples.  
Income taxation — non‑resident individuals General income of non‑resident individuals Marginal rate Thresholds Employer PAYG, ATO
    29% $0‑$34,000  
    30% $34,001‑$80,000  
    40% $80,001‑$180,000  
    45% $180,001+  
  Exceptions    
 

Unfranked dividends from Australian payer (final withholding tax) other than conduit foreign income.

Franked dividends not subject to withholding tax.

30% (domestic law).
0%‑15% (under tax treaties)

 
  Interest payments from Australian payer (final withholding tax)

10% if not exempt (domestic law).
0% — 10% (tax treaties)

 
  Royalties paid from Australian payer (final withholding tax)

30% (domestic law).
5% — 15% (under tax treaties)

 
  Australian source net income (other than dividends, interest and royalties) from managed investment trusts.

Resident of information exchange country — 22.5% withholding tax on distribution net of investor's deductions.
Other non‑resident — 30% final withholding tax.

 
Fringe benefits tax Tax‑inclusive value of non‑exempt fringe benefits 46.5%   Paid by employer to the ATO
Corporate income taxation       Paid by entity to the ATO
Companies The taxable income of companies. 30%    
Strata title bodies, unincorporated clubs/societies Taxed like companies, but 'mutual income' is not assessable 30%    
Retirement Savings Account (RSA) providers (other than life insurance companies) Taxable income 30%
15%
On standard component
On RSA component
 
First Home Saver Account (FHSA) providers (other than life insurance companies) Taxable income 30%
15%
On standard component
On FHSA component
 
Life insurance companies Taxable income 30%
15%
Ordinary class
Complying superannuation/FHSA class
 
Credit unions with notional taxable income less than $50,000 Interest received 30%    
Credit unions with notional taxable income of at least $50,000 but less than $150,000 Interest received 0 to $49,999: 0%;
over $49,999: 45%
   
Credit unions with notional taxable income of at least $150,000   30%    
Pooled development funds Taxable income

15%

25%

30%

On SME regulated component

On unregulated component

On component excess on becoming/ceasing to be a PDF

 
Corporate unit trusts, public trading trusts and corporate limited partnerships Taxable income 30%    
Non‑profit companies Taxable income 0 — $415: 0 %;
$416‑$915: 55%;
over $915: 30%
   
Superannuation funds       Paid by superannuation fund to the ATO
Complying superannuation funds Income (including realised capital gains and assessable contributions) 15% (certain non‑arm's length income, e.g. private company dividends, taxed at 45%).
No‑TFN contributions 46.5% 
 
Non‑complying superannuation funds Income (including realised capital gains and assessable contributions) 45%    
Complying approved deposit funds Income (including realised capital gains and assessable contributions) 15% (certain non‑arm's length income, e.g. private company dividends, taxed at 45%)   
Non‑complying approved deposit funds Income (including realised capital gains and assessable contributions) 45%.
No‑TFN contributions 46.5 % 
 
Pooled superannuation trust Income (including realised capital gains and assessable contributions) 15% (certain non‑arm's length income, e.g. private company dividends, taxed at 45%)   

 

Tax Tax base Tax rates Taxpayers and collection points
Trusts       Paid by trustee to the ATO
Trustee of trust (other than public trading trusts, corporate unit trusts and FHSA trusts) Income that not otherwise assessable to a beneficiary 46.5%    
FHSA trusts Taxable income 30%    
Resource taxes        
Petroleum resource rent tax 'Economic rent' generated by a petroleum project. It is levied on project receipts, less all project related expenditures (including capital expenditures) and other eligible exploration expenditures transferred to the project. Deductible expenditure not offset against project receipts in a tax year is compounded at varying rates and carried forward to be available as a deduction against project receipts in future years. 40% Of taxable profit (that is, project receipts less deductible expenditures) Petroleum projects located offshore (except the North West Shelf project). Paid quarterly.
Crude oil excise Value of production of crude oil Varies from 0% to 55% The first 30 million barrels of production from a field is exempt from the crude oil excise Levied on extracting crude oil from the North West Shelf project area and onshore. Also applies to the production of condensate. Paid monthly.
Resource rent royalty Profits from extraction of petroleum. Revenue is shared with Western Australia 40% Of net project receipts Levied on extracting petroleum from Barrow Island. Paid quarterly.
Offshore & internal waters petroleum royalty Value of production of petroleum. Revenue is shared with Western Australia 10‑12.5% of net well head value   Levied on extracting petroleum from North West Shelf project area. Paid monthly.
Excise taxation       Paid by the manufacturer or owner of the goods to the ATO.
  Beer   Per litre of alcohol calculated on that alcohol content by which the percentage by volume of alcohol of the goods exceeds 1.15, CPI indexed.  
  Beer not exceeding 3% by volume of alcohol packaged in an individual container not exceeding 48 litres $33.77  
  Beer exceeding 3% but not exceeding 3.5% by volume of alcohol packaged in an individual container not exceeding 48 litres $39.36  
  Beer exceeding 3.5% by volume of alcohol packaged in an individual container not exceeding 48 litres $39.36  
  Beer not exceeding 3% by volume of alcohol packaged in an individual container exceeding 48 litres $6.74  
  Beer exceeding 3% but not exceeding 3.5% by volume of alcohol packaged in an individual container exceeding 48 litres $21.17  
  Beer exceeding 3.5% by volume of alcohol packaged in an individual container exceeding 48 litres $27.70  
  Other excisable beverages, of an alcoholic strength not exceeding 10% alc/vol $66.67 Per litre of alcohol, CPI indexed  
  Spirits and other Excisable Beverages > 10 per cent alc/vol      
  Brandy $62.25 Per litre of alcohol, CPI indexed  
  Spirits, including:
Fruit Brandy, Whisky, Rum, Liqueurs
$66.67 Per litre of alcohol, CPI indexed  
  Other excisable beverages, of an alcoholic strength exceeding 10% $66.67 Per litre of alcohol, CPI indexed  
  Spirits for various purposes other than consumption in beverages Free    
Tobacco products In stick form not exceeding 0.8 grams per stick tobacco $0.24757 Per stick, CPI indexed  
  Tobacco, other $309.47 Per kilogram of tobacco content, CPI indexed  
Petroleum based oils and lubricants, not for use as fuel Oils and recycled oils, excluding greases $0.05449 Per litre  
  Greases and recycled greases $0.05449 Per kilogram  
Fuel Products Gasoline and Kerosene for use as fuel in aircraft      
  Liquid fuels, including $0.02854 Per litre  
  Gasoline (other than for use as fuel in aircraft) $0.38143 Per litre  
  Diesel      
  Biodiesel      
  Fuel oil, heating oil, kerosene      
  Denatured ethanol for use as fuel in an internal combustion engine      
Goods and services tax Taxable supplies of goods and services 10%   Paid by registered entities to the ATO
  Importations of most goods 10%   Collected by Customs at border, or deferred and paid to the ATO
Customs duty       Paid by importers to Customs at the border
Textiles, clothing and footwear Cotton sheeting, fabric, carpet and footwear 10%    
  Sleeping bags, table linen and footwear parts 7.5%    
  Clothing and finished textiles 17.5%    
Passenger motor vehicles PMVs and replacement components 10%    
  Four‑wheel drive and light commercial vehicles 5%    
Excise like goods Spirits, fuel ethanol, brandy and 'other excisable beverages' An equivalent to the applicable excise rate plus the general tariff rate    
  Other goods (including beer) An equivalent to the applicable excise rate    
Other imports General tariff 5%    
  Tariff Concession Scheme 0% Applies when there is no import‑competing domestic production  
Wine equalisation tax Wine and wine products, cider, perry, mead and sake 29% Of wholesale value Paid by producers and or wholesalers to the ATO
Luxury car tax Vehicles with a GST‑inclusive value above the luxury car threshold 33%(a) Of the value above the luxury car tax threshold, adjusted to remove the GST component of this value Paid by suppliers to the ATO
  1. In the 2008‑09 Budget, the Australian Government announced an increase in the rate of the luxury car tax to 33 per cent from 1 July 2008.

 

Tax Tax base Tax rates Taxpayers and collection points
Agricultural levies       Paid by producers to Levies Revenue Service.
Dairy (All Milk Levy) Milk protein 2.6448 cents Per kilogram  
  Milk fat 6.4438 cents Per kilogram  
Dairy Adjustment Levy Milk 11 cents Per litre  
Coarse grains Barley 1.02% Farm gate value  
  Triticale 1.02% Farm gate value  
  Oats 1.02% Farm gate value  
  Cereal rye 1.01% Farm gate value  
  Sorghum 1.02% Farm gate value  
  Maize 0.72% Farm gate value  
  Millet 1.01% Farm gate value  
  Canary seed 1.01% Farm gate value  
Cotton Cotton $2.25 Per 227kg bale  
Grains — legumes Field peas 1.02% Farm gate value  
  Lupins 1.02% Farm gate value  
  Faba beans 1.02% Farm gate value  
  Chick peas 1.02% Farm gate value  
  Mung beans 1.02% Farm gate value  
  Pigeon peas 1.02% Farm gate value  
  Peanuts 1.005% Farm gate value  
  Navy beans 1.02% Farm gate value  
  Vetch 1.02% Farm gate value  
  Cow peas 1.02% Farm gate value  
  Lentils 1.02% Farm gate value  
Oil seeds Sunflower 1.02% Farm gate value  
  Linseed (inc linola) 1.02% Farm gate value  
  Soybean 1.02% Farm gate value  
  Safflower 1.02% Farm gate value  
  Rape seed (inc canola) 1.02% Farm gate value  
Pasture seeds Pasture seeds — category one (medics) $10.00 Per tonne  
  Pasture seeds — category two (lucernes) $15.00 Per tonne  
  Pasture seeds — category three (clovers) $15.00 Per tonne  
  Pasture seeds — category four (subclovers) $11.00 Per tonne  
  Pasture seeds — category five (serradella) $10.00 Per tonne  
Rice For Rice delivered to a processor $3.00 Per tonne  
Wheat Wheat 1.02% Farm gate value  
Wheat export Wheat export (effective 1 October 2003) 22 cents Per tonne  
Almonds In shell $0.01 Per kilogram  
  Shelled $0.02 Per kilogram  
  Nonpareil in shells $0.02 Per kilogram  
Apples and pears (excluding Nashi) Apples (domestic) 1.845 cents Per kilogram  
  Pears (domestic) 2.099 cents Per kilogram  
  Apples (export) 1.845 cents Per kilogram  
  Pears (export) 2.099 cents Per kilogram  
  Apples (juicing) $2.75 Per tonne  
  Pears (juicing) $2.95 Per tonne  
  Apples (processing) $5.50 Per tonne  
  Pears (processing) $5.90 Per tonne  
Avocado Fresh 7.5 cents Per kilogram  
  Processing $0.01 Per kilogram  
Banana Domestic $0.017 Per kilogram  
Cherry Domestic $0.07 Per kilogram  
  Export $0.07 Per kilogram  
Chestnut Domestic $0.10 Per kilogram  
  Export $0.10 Per kilogram  
Citrus Export and domestic oranges in bulk $2.75 Per tonne  
  Oranges not in bulk 5.5 cents Per box (20kg)  
  Other citrus in bulk $2.00 Per tonne  
  Other citrus not in bulk $0.04 Per box  
Custard Apple Domestic and export package $0.40 Tray or box  
  Bulk $50.00 Per tonne  
Dried fruits Dried vine fruits $11.00 Per tonne  
  Dried plums (prunes) $13.00 Per tonne  
  Dried tree fruits (other than prunes) $32.00 Per tonne  
Dried vine fruit Dried vine fruits $7.00 Per tonne  
Honey Domestic rate 2 cents Per kilogram  
  Export rate 2 cents Per kilogram  
Lychee Fresh lychee 8 cents Per kilogram  
  Processing lychee 1 cent Per kilogram  

Macadamia

Dried kernel — domestic/export

25.21 cents

Per kilogram

 

Mangoes

Domestic rate

1.75 cents

Per kilogram

 
 

Export rate

1.75 cents

Per kilogram

 

Mushrooms, agaricus

Domestic

$2.16

Per kilogram

 

Nashi

Domestic

10 cents

Per single layer tray (4kg)

 
 

Export

10 cents

Per single layer tray (4kg)

 
 

Juicing

$1.80

Per tonne

 
 

Processing

$3.60

Per tonne

 

Nursery products

Domestic and export

5.00%

Purchase price

 

Onion

Domestic and export

$2.00

Per tonne

 

Papaya

Fresh papaya

2 cents

Per kilogram

 
 

Processing papaya

0.25 of a cent

Per kilogram

 
 

Export papaya

2 cents 

Per kilogram

 

Passionfruit

Domestic and export

20 cents

Per 18 litre carton

 
   

20 cents

Per 8kg, if not in cartons

 
   

1.5 cent

Per kilogram processing passionfruit

 

Persimmons

Domestic and export

6.25 cents

Per kilogram fresh Persimmons

 

Potato

Domestic

$0.50

Per tonne

 
 

Export

$0.50

Per tonne

 
 

Potato processing

$0.50

Per tonne

 

Rubus

Domestic and export

$0.11

Per kilogram rubus

 

Stone Fruit

Domestic and export

$0.01

Per kilogram

 

Strawberry

Runners

$8.00

Per 1000 (or part thereof)

 

Table Grapes

Domestic and export

$0.01 cent

Per kilogram

 

Turf

Domestic

1.5 cents

Per square metre turf

 
 

Export

1.5 cents

Per square metre turf

 
Vegetables Vegetables excluding asparagus, garlic, hard onions, herbs (other than fresh culinary shallots and parsley), melons, mushrooms, potatoes (other than sweet potatoes), seed sprouts or tomatoes 0.50% value  
Beef production Beef production (cattle slaughter) 0.6 of a cent Per kilogram  
Buffalo export Buffalo export charge $4.60 Per head  
Buffalo slaughter Buffalo slaughter $9.60 Per head  
Cattle and livestock delivered for export (producers) Cattle $5.00 Per head  
  Lot‑fed cattle $5.00 Per head  
  Bobbies $0.90 Per head  
  Sheep (defined sale price) more than $5, maximum 20 cents 2%    
  Lambs (defined sale price) more than $5 value, maximum $1.50 2%    
  Goats (defined sale price) 37.7 cents Per head  
  Sheep (no defined sale price) 20 cents Per head  
  Lambs (no defined sale price) 80 cents Per head  
  Goats (no defined sale price) 37.7 cents Per head  
Cattle and Livestock Exporters Charge Cattle 0.9523 of a cent Per kilogram  
  Sheep 60 cents Per head  
  Lambs 60 cents Per head  
  Goats 50 cents Per head  
Cattle and Livestock Transaction Levy Same as cattle and livestock delivered for export      
Chickens — laying Laying chicken 7.87 cents Per chick  
Chickens — meat Meat chicken 26.74 cents Per 100 chicks  
Deer export Deer Export Charge —( 1 July 2007 — 30 June 2010 ) $5.00 Per head  
Deer slaughter 1 July 2007 — 30 June 2010 8 cents Per kilogram  
Deer velvet 1 July 2007 — 30 June 2010 2% Sale value  
  Deer Velvet Export Charge (1 July 2007 — 30 June 2010) 2% Declared value  
Game animals — (goats and pig) Game goats 3 cents  Per head  
  Game pigs 25 cents Per head  
Goat fibre Goat fibre 1.50% Ad valorem  
Horses slaughter Horse slaughter  $5.00 Per head  
Livestock slaughter Sheep 15 cents Per head  
  Lambs 16 cents Per head  
  Goats 10 cents Per head  
Macropod — animal consumption All macropods processed (for animal consumption) 3 cents Per head  
Macropod — human consumption Kangaroos processed (for human consumption) 7 cents Per head  
  Other macropods processed (for human consumption) 4 cents Per head  
Pig slaughter Pigs $2.53 Per head  
Ratite slaughter Emus $2.00 Per head  
  Ostriches $1.25 Per head  
Grape research Less than 20 tonnes $0.00 Exempt  
  20 tonnes and over $2.00 Per tonne  
Wine Export Charge $0.0 to $20m 0.20% Value  
  $20m to $70m 0.10% Value between $20m and $70m plus above  
  $70m and over 0.05% Value over $70m plus both above  
Wine Grapes Levy Up to and including 10 tonnes $200 Plus $5.00 per tonne  
  Over 10 to and including 3,000 tonnes $180 Plus $9.20 for each tonne(including first 10 tonnes)  
  Over 3,000 to and including 6,000 tonnes $27,780 Plus $8.80 for each tonne over 3,000 tonnes  
  Over 6,000 to and including 9,000 tonnes $54,180 Plus $7.00 for each tonne over 6,000 tonnes  
  Over 9,000 to and including 12,000 tonnes $75,180 Plus $6.30 for each tonne over 9,000 tonnes  
  Over 12,000 to and including 20,000 tonnes $94,080 Plus $5.60 for each tonne over 12,000 tonnes  
  Over 20,000 to and including 40,000 tonnes $138,880 Plus $5.50 for each tonne over 20,000 tonnes  
  Over 40,000 tonnes $248,880 Plus $5.40 for each tonne over 40,000 tonnes  
Egg promotion Egg promotion 32.5 cents For each laying chicken  
Farmed prawns Banana prawn (penaeus merguiensis) 3.64 cents Per kilogram whole farmed prawns  
  Black tiger prawn (penaeus monodon) 3.64 cents Per kilogram whole farmed prawns  
  Brown tiger prawn (penaeus esculentis) 3.64 cents Per kilogram whole farmed prawns  
  Kuruma prawn (penaeus japonicus) 3.64 cents Per kilogram whole farmed prawns  
  School prawn (metapenaeus macleayi) 3.64 cents Per kilogram whole farmed prawns  
Forest & wood products Other Softwood sawlogs(other than cypress sawlogs) 29 cents Per cubic metre  
  Cypress sawlogs 22 cents Per cubic metre  
  Hardwood sawlogs 29 cents Per cubic metre  
  Plywood and veneer logs 15 cents Per cubic metre  
  Wood panel pulplogs 10 cents Per cubic metre  
  Low grade softwood log 8 cents Per cubic metre  
  Softwood roundwood log 8 cents Per cubic metre  
  Export woodchip hardwood pulplogs 3.5 cents Per cubic metre  
  Export woodchip softwood pulplogs $0.00 Per cubic metre  
  Paper pulplogs $0.00 Per cubic metre  
Forest growers Forest growers 5 cents Per cubic metre  
Queen bee Queen Bee sold for $20 and under 0.50% Sale price  
  Queen Bee sold for over $20 10 cents Per queen bee  
Sugar cane Sugar cane $0.14 Per tonne  
Wool Shorn wool 2% Ad valorem