2017 Tax Information

Keep Informed of the Latest Taxation Information

TAXATION OF DEATH BENEFITS PAID FROM SUPERANNUATION
Age of Deceased
Type of Payment
Age of Recipient
Taxable Component Paid to a Dependant
Taxable Component Paid to a Non-Dependant
Any Age
Lump Sum
Any Age
Tax Free
Taxed in fund – lower of MTR* or 17% Untaxed in fund – lower of MTR* or 32%
<60
Income Stream
<60
Taxed in fund – MTR* with 15% tax offset Untaxed in fund – MTR*
N/A
Any Age
Income Stream
60+
Taxed in fund – tax free Untaxed in fund – MTR* with 10% tax offset
N /A
60+
Income Stream
Any Age
Taxed in fund – tax free Untaxed in fund – MTR* with 10% tax offset
N /A

* MTR – Marginal Tax Rate # Tax free component is always tax free #* Table excludes Medicare levy

SUPERANNUATION MINIMUM PENSION FACTORS
Age of Beneficiary
Standard Percentage Factors %
Under 65
4
65-74
5
75-79
6
80-84
7
85-89
9
90-94
11
95 or more
14

There is no maximum limit (except for transition to retirement pensions – 10% maximum).

PRESERVATION AGES
Date of Birth
Preservation Age
Earliest Period Withdrawals Allowed*
Before 1 July 1960
55
Withdrawals allowed now
1 July 1960 – 30 June 1961
56
1 July 2016 – 30 June 2017
1 July 1961 – 30 June 1962
57
1 July 2018 – 30 June 2019
1 July 1962 – 30 June 1963
58
1 July 2020 – 30 June 2021
1 July 1963 – 30 June 1964
59
1 July 2022 – 30 June 2023
From 1 July 1964
60
1 July 2024 – 30 June 2025

* Withdrawals only permitted where a condition of release is satisfied.
See ‘Superannuation Withdrawals’.

TAX RATES - INDIVIDUALS

RESIDENT TAX RATES 2015/2016

Taxable Income $
Tax Thereon $
Tax on Excess %
18,200
0
19
37,000
3,572
32.5
87,000
19,822
37
180,000
54,232
47

RESIDENT TAX RATES 2016/2017

Taxable Income $
Tax Thereon $
Tax on Excess %
18,200
0
19
37,000
3,572
32.5
80,000
17,547
37
180,000
54,547
47

* The above rates do not include the Medicare Levy.

# The above rates include the Budget Repair Levy.

NON-RESIDENT TAX RATES 2015/2016

Taxable Income $
Tax Thereon $
Tax on Excess %
0
0
32.5
80,000
26,000
37
180,000
63,000
47

NON-RESIDENT TAX RATES 2016/2017

Taxable Income $
Tax Thereon $
Tax on Excess %
0
0
32.5
87,000
28,275
37
180,000
62,685
47

* The above rates include the Temporary Budget Repair Levy.

 

TAX RATES - CHILDREN (RESIDENTS)

Except for certain personal exertion income (e.g. wages), the unearned income of most children (under 18) will be taxed at the following rates (ignoring any low income offsets)

Taxable Income $
Tax Payable
0 – 416
Nil
417 – 1,307
68% of excess over $416
1,308 and over
47% of entire amount

This means that the effective tax free-threshold for unearned income is $416.

Where a child under 18 years of age earns income from personal exertion (e.g. a part-time job), that income will be subject to the normal individual tax rates

* The above rates include the Temporary Budget Repair Levy.

DEPRECIATION
Small Business Entities
Depreciable plant with a cost of less than $20,000 acquired between 13 May 2015 and 30 June 2017
100% write off
Depreciable plant with a cost of less than $1,000 acquired on or after 1 July 2017
100% write off
All other depreciable plant
Optional general small business
pool at 30% (15% in year 1)

Other Business Entities

Depreciable plant with a cost of $100 or less
100% write of
Depreciable plant with a cost of more than $100 and less than $1,000
Optional low value pool at 37.5%
(18.75% in year 1)
Depreciable plant with a cost of $1,000 or more
Effective life rates

Individuals Not Carrying on a Business

Depreciable plant with a cost of $300 or less
100% write of
Depreciable plant with a cost of more than $300 and less than $1,000
Optional low value pool at 37.5%
(18.75% in year 1)
Depreciable plant with a cost of $1,000 or more
Effective life rates
FRINGE BENEFITS TAX
1 April 2016 – 31 March 2017
Benchmark Interest Rate –
Loan fringe benefits
Deemed interest for operating cost method for
car benefits
5.65%
Car Parking Benefits – Car parking threshold
$8.48 per day
In-House Fringe Benefits – Reduction in taxable value
$1,00
Calculation rates
1 April – 31 March 2016/2017
Gross up rates
Benefit for which employer not entitled to a GST input tax credit – 1.9608
Benefit for which employer entitled to a GST input tax credit – 2.1463
Value includes GST if paid
FBT rate
49%

Car Fringe Benefit Statutory Formula Rates

Existing contracts at 10 May 2011
Contracts entered into or altered after 10 May 2011
Annualised Kilometres
Statutory %
Statutory %
Less than 15,000
26
20
15,000 – 24,999
20
20
25,000 – 40,000
11
20
More than 40,000
7
20
MEDICAL EXPENSES

Medicare Levy – 2% of taxable income. Not applicable for non-residents.

Medicare Levy Surcharge – Medicare levy surcharge for individuals who do not have private patient hospital insurance and have income for Medicare levy surcharge purposes of more than the following:

 

Income Bracket
2015/2016 & 2016/2017
Singles
90,000 or less
90,001-105,000
105,001-140,000
140,001 or more
Families*
180,000 or less
180,001-210,000
210,001-280,000
280,001 or more
Medicare Levy Surcharge
Rates
0%
1%
1.25%
1.5%
#Medical Expenses Tax Offset – 2015/2016
Offset Rate
20%
10%
10%
10%
Expenses must exceed
$2,265
$5,343
$5,343
$5,343

* The family income threshold is increased by $1,500 for each dependent child after the first

 

#Medical Expenses Tax Offset – From the 2016 year on, only available for disability aids, attendant care or aged care expenses – these can be claimed until 30 June 2019

LOW INCOME TAX OFFSET ("LITO")
Amount
$445
LITO begins to be reduced at
$37,000
You are no longer eligible for LITO at
$66,667
Withdrawal rate
1.5%
HELP/HECS REPAYMENT THRESHOLDS
HELP Repayment Income 2015/2016 $
HELP Repayment Income 2016/2017 $
Rate to be Applied to HELP Repayment Income %
Below 54,126
Below 54,869
Nil
54,126 – 60,292
54,869 – 61,119
4
60,293 – 66,456
61,120 – 67,368
4.5
66,457 – 69,949
67,369 – 70,909
5
69,950 – 75,190
70,910 – 76,222
5.5
75,191 – 81,432
76,223 – 82,550
6
81,433 – 85,718
82,551 – 86,894
6.5
85,719 – 94,331
86,895 – 95,626
7
94,332 – 100,519
95,627 – 101,899
7.5
100,520 and above
101,900 and over
8

HELP repayment income includes taxable income plus any total net investment loss (which includes net rental losses), total reportable fringe benefits amounts, reportable employer superannuation contributions and exempt foreign employment income.

 

 

 

Those leaving Australia to live overseas for more than 6 months from 1 January 2016 will need to register with the ATO. Repayments will be calculated against overseas income for non-residents from 1 July 2017.

BUILDING ALLOWANCE
Type
Construction Commenced
Rate %
Residential
18/7/1985 – 15/9/1987
4
16/9/1987 – 26/2/1992
2.5
27/2/1992 onwards
2.5 or 4*
Non-residential
20/7/1982 – 21/8/1984
2.5
22/8/1984 – 15/9/1987
4
16/9/1987 – 26/2/1992
2.5
27/2/1992 onwards
2.5 or 4*

* 4% rate applies to short term traveler accommodation and industrial buildings where construction commenced after 26/2/1992. Structural improvements that commenced after 26/2/1992 are also eligible.

DIVISION 7A BENCHMARK INTEREST RATE
Year of Income Ended 30 June
%
2015
5.95
2016
5.45
2017
5.40
MOTOR VEHICLES

Cents per Kilometre Rate

A standard rate of 66 cents/km applies from 1 July 2015.

This rate is used to claim motor vehicle expenses on a cents per kilometre basis where business

kilometres are less than 5,000 km, or for travel over 5,000 km where the claim is limited to 5,000 km

 

Luxury Cars

Financial Year
Car (Depreciation) Limit $

Luxury Car Tax threshold

Fuel-efficient vehicles $
Other vehicles $
2015/2016
57,466
75,375
63,184
2016/2017
57,581
75,526
64,132

Leases of cars costing more than the depreciation limit will be regarded as loans whereby depreciation and interest will be tax deductible rather than lease payments.

 

GST input tax credit claims for cars are generally capped at 1/11 of the car limit ($5,235 in 2017).

QUEENSLAND TRANSFER DUTY
Dutiable Value $
Tax Thereon $
Duty Rates on Excess
5000
0
$1.50 for each $100 or part thereof
75,000
1,050
$3.50 for each $100 or part thereof
540,000
17,325
$4.50 for each $100 or part thereof
1,000,000
38,025
$5.75 for each $100 or part thereof

A 3% transfer duty surcharge on foreign purchasers of residential property, effective from 1 October 2016.

QUEENSLAND PAYROLL TAX

Exemption Threshold – $1,100,000

Rate – 4.75%

COMPANY TAX
Company Aggregated Turnover
2015/2016 %
2016/2017 % (Proposed)
Operating a Business
Less than $2 million
28.5
27.5
$2 million to $9,999,999
30
27.5
$10 million or more
30
30
Not Operating a Business
30
30
SUPERANNUATION FUNDS
Earnings on Assets Supporting:
2015/2016 & 2016/2017 %
Accumulation phase
15
Pension phase
0
EMPLOYMENT TERMINATION PAYMENTS (LIFE BENEFIT TERMINATION PAYMENT)

2015/2016 & 2016/2017

Age at last day of the income year in which the payment was made
Amount $
#Taxable Component Rate %
Under preservation age
Up to 195,000
30
Over 195,000
TMR*
Preservation age and over
Up to 195,000
15
Over 195,000
TMR*

TMR = Top Marginal Rate

# Table excludes Medicare Levy

The payment must be received within 12 months of the termination to be eligible as an ETP.

 

The taxable component is the ETP less the tax free component. The tax free component consists of the invalidity component and the pre-July 1983 component of the payment.

 

For certain ETPs (non-excluded), only the part of the ETP that takes a person’s total annual taxable income (including the ETP) to no more than $180,000 will receive the ETP tax offset.

TAX FREE EARLY RETIREMENT AND GENUINE REDUNDANCY PAYMENTS
Tax Free Amoun
2015/2016 $
2016/2017 $
Base limit
9,780
9,936
For each complete year of service
4,891
4,969
ANNUAL SUPERANNUATION CONTRIBUTIONS LIMITS
Contribution Type
Annual Limit
2015/2016
2016/2017
Concessional (under 49 years)
$30,000
$30,000+
Concessional (aged 49 years or over)
$35,000
$35,000+
Non concessional ~
$180,000 or $540,000 over a three year period (brought forward)*
$180,000 or $540,000 over a three year period (brought forward)*
1 July 2007#
Tax rate on concessional contributions
– income exceeds $300,000^
30%
30%
Tax rate on concessional contributions
– income $300,000 or under
15%
15%

* The $540,000 bring forward option can only be used by members under the age of 65 on 1 July.

  • From 1 July 2017, non concessional cap is reduced to $100,000 for members under 75 and 65 or over. However, the amount to be contributed is dependent on the members total superannuation balance at 30 June of the previous financial year.
  • ^ This threshold is reduced to $250,000 effective from 2017/2018.
  • + These caps are both to be reduced to $25,000 effective from 1 July 2017
SUPERANNUATION GUARANTEE CONTRIBUTIONS

Superannuation Guarantee Rate:9.5%

Quarterly super contribution base above which compulsory employer contributions are not required in 2016/2017: $51,620.

PERSONAL SUPERANNUATION CONTRIBUTIONS
Age
Personal Contributions
Employment Condition
<65
Permitted
65 – 74
Permitted
Part-time basis*
75+
Not Permitted

*At least 40 hours of paid work in a period of not more than 30 consecutive days of the financial year.

SUPERANNUATION - LOW-INCOME EARNERS REBATE
Maximum Entitlement $
Adjustable Taxable Income Threshold $
Rebate Amount
500
37,000
15% of concessional contributions
SUPERANNUATION - GOVERNMENT CO-CONTRIBUTIONS
Year of Entitlement
Maximum Entitlement $
Matching Rate %
Lower Threshold $
Higher Threshold $
Reduction Threshold %
2015/2016
500
50
35,454
50,454
3.333
2016/2017
500
50
36,021
51,021
3.333
SPOUSE CONTRIBUTIONS

2015/2016 & 2016/2017

Total of Spouse’s Assessable Income* $
Maximum Rebateable Contributions (“MRC”) $
Maximum Rate $
0 – 10,800
3,000
Lesser of actual or 3,000 x 18%
10,801 – 13,799
3,000-(Spouse income* – 10,800)
Lesser of actual or MRC x 18%
13,800 and over
0
0

* Includes reportable fringe benefits and reportable employer superannuation contributions.

SUPERANNUATION WITHDRAWALS
Age
Cashing of Benefits
Exemptions
Under preservation age
Not Permitted
  • • Death
  • • Temporary or permanent incapacity
  • • Severe financial hardship
  • • Compassionate grounds
  • • Terminal medical condition
  • • Temporary residents leaving Australia permanently
At or above preservation age and under 60
Not Permitted
  • • An arrangement under which “gainful employment” has ended; AND
  • • Trustee is satisfied that the member intends never
    again to become “gainfully employed” for at least
    10 hours a week in the future; OR
  • • Any exemptions listed above are satisfied; OR
  • • Under a transition to retirement pension.
60 – 64
Permitted only for benefits accumulated up to the point in time the condition of release is met
  • • An arrangement under which “gainful employment”” is terminated (even if the person subsequently
    enters “gainful employment” again); OR
  • • Any exemptions listed above are satisfied.
65+
Permitted

 

Age
Type of Benefit
Taxation Implications
Under preservation age
Withdrawal generally not permitted
At or above preservation age and under 60
Taxed element
  • Lump sum: 0% up to $195,000
    Lower of MTR* or 15% > $195,000
  • Pension: MTR* with 15% tax offset
Untaxed element(Generally only relevant for people who have been a member of certain public sector funds or schemes)
  • Lump sum: Lower of MTR* or 15% up to
    $195,000 Lower of MTR* or 30% $195,000 – $1,415,000
    TMR# > $1,415,000
  • Pension: MTR*
60+
Taxed element
No tax on lump sum or pension payments
Untaxed element(Generally only relevant for people who have been a member of certain public sector funds or schemes)
  • Lump sum: Lower of MTR* or 15% up to $1,415,000
    TMR#> $1,415,000
  • Pension: MTR* with 10% tax offset available

* MTR – Marginal Tax Rate # TMR – Top Marginal Rate #* Table excludes Medicare levy

3 + 3 =

Stay ahead of the game when it comes to tax and compliance.

We value peace of mind, financial success and enabling freedom of choice. So contact us to receive those freedoms, and rely on our experts to deliver them.