Tax Profressional usually responds in minutes

Our tax advisers are all verified

Unlimited follow-up questions

  • Sign in
  • Personal Tax

    AT A GLANCE

    OUR JURISDICTIONS —

    Personal Tax

    LAST UPDATED 11/01/2024

    AT A GLANCE

    Personal Tax

    If you live in Australia (resident for tax purposes), you have to pay income tax on money you make worldwide. This includes money you make in Australia and from other countries. Temporary residents have some exceptions, which can be found in the Capital Gains section under Income determination.

    If you don’t live in Australia (non-resident for tax purposes), you only have to pay Australian income tax on money you make from Australian sources. This doesn’t include interest, royalties, or dividends, which have their own tax called withholding tax. Some other income might also be taxed differently.

    Australia doesn’t have any extra or alternative income taxes on personal income.

    Here are the current personal income tax (PIT) rates for people who live in Australia and those who don’t, until June 30, 2024. After that, the tax rates will change.

    Residents (living in Australia):

    For the financial years 2022/23 and later until June 30, 2024:

    Taxable Income (AUD) — Tax on that income (AUD) — Income tax on extra money (%)

    • 0 to 18,200 — 0 — 0%
    • 18,200 to 45,000 — 0 — 19.0%
    • 45,000 to 120,000 — 5,092 — 32.5%
    • 120,000 to 180,000 — 29,467 — 37.0%
    • Over 180,000 — 51,667 — 45.0%

    Note: This doesn’t include the 2% Medicare levy most residents have to pay. There’s also an extra 1% to 1.5% Medicare levy for higher-income people without private patient hospital cover. Special rates apply to children under 18 who make more than AUD 416.

    Non-residents (not living in Australia):

    For the financial year 2022/23:

    Taxable Income (AUD) — Tax on that income (AUD) — Income tax on extra money (%)

    • 0 to 120,000 — 0 — 32.5%
    • 120,000 to 180,000 — 39,000 — 37.0%
    • Over 180,000 — 61,200 — 45.0%

    Note: Non-residents don’t have to pay the Medicare levy in Australia.

    Working Holiday Makers:

    People on a temporary working holiday visa or a work and holiday visa in Australia have special tax rates. The first AUD 45,000 they make is taxed at 15%. Anything over that is taxed at the regular rates.

    Local Taxes:

    There are no local taxes on personal income in Australia.

    How Tax Natives works.

    Tax Natives is an international tax network that connects Explorers (taxpayer clients) with Natives (qualified and regulated tax advisers) from one jurisdiction to another.

    Ask a question to get started

    STEP ONE

    Select the 'Ask a question button located on the top of each page and follow through the process to compose your question

    STEP TWO

    Once your question is confirmed and your account is set up, navigate to your user dashboard to view the message exchange between you and your Tax Native.

    STEP THREE

    Each Tax Native has to accept a question from an Explorer before a conversation can begin. Once the Tax Native has accepted your question, a quote will be submitted for approval through the messaging portal.

    Personal Tax Residence in Australia

    General

    Currently, you’re considered a resident of Australia for tax purposes if you live in Australia. This includes:

    People whose main home is in Australia, unless they have a permanent home outside of Australia.
    People who have been in Australia for more than half of the tax year (at least 183 days), unless their main home is outside Australia, and they don’t plan to live in Australia.
    “Eligible employees” according to laws about superannuation entitlements for Federal public servants.
    People who start a job in Australia and stay for more than six months.

    Citizenship and nationality don’t determine if you have to pay Australian income tax.

    A temporary resident for tax purposes is someone who:

    Has a temporary visa under the Migration Act 1958.
    Isn’t an Australian resident according to the Social Security Act 1991.
    Doesn’t have an Australian spouse as defined in the Social Security Act 1991.

    Temporary residents don’t have to pay Australian tax on income from other countries. Residents of Australia have to pay tax on income from all over the world.

    Australia has tax agreements with some other countries that have special rules for taxing certain types of income (see Tax treaties in the Foreign tax relief and tax treaties section for more info). Most treaties have “tie-breaker” rules to figure out which country should tax the income if someone is considered a resident of both Australia and another country.

    The Australian government announced in the 2021/22 Federal Budget that they plan to change and update the tax rules for determining individual tax residency. Since then, there has been a change of government, and it’s unclear if this proposal will happen. If it does, there will be a new main rule where someone becomes an Australian tax resident if they’re in Australia for 183 days or more in any tax year. If someone doesn’t meet this main rule, secondary rules will apply. These secondary rules would look at things like whether someone can live permanently in Australia, if they have a home, family, or economic connections in Australia. If these changes happen as originally planned, they would start on 1 July after the law is passed, which would be 1 July 2023 at the earliest.

    Sales / Consumption Taxes:

    The federal government charges a 10% goods and services tax (GST) on most goods and services. Some items, such as food, health, medical, and educational supplies, are GST-free. Residential rents, financial supplies, and others are input-taxed and not subject to GST.

    Health insurance is GST-free, life insurance is input taxed, and general insurance is taxed. GST applies to digital products, services, and low-value goods imported by Australian consumers.

    Property Taxes:

    States and territories impose land taxes based on the unimproved value of land. Municipal councils also charge rates and fees on land. 

    Some Australian states impose surcharges on foreign property ownership. The state of Victoria has a windfall gains tax on land value increases resulting from rezoning.

    Individual - Other Taxes

    Fringe Benefits Tax (FBT):

    Fringe benefits aren’t taxed for employees; instead, employers pay the FBT.

    Social Security Contributions:

    Australia doesn’t have social security taxes, but there’s a 2% Medicare levy on residents’ taxable income and reportable fringe benefits to fund the National Health Scheme (Medicare). No levy is paid by low-income earners.

    High-income taxpayers not covered by a private health insurance fund registered in Australia pay a surcharge between 1% and 1.5%. Employers and foreign nationals working in Australia should choose a health fund carefully to avoid the Medicare levy surcharge and ensure adequate coverage. Consult a tax expert for advice.

    Superannuation and Retirement Taxation: Employer-supported and self-employed contributions to superannuation entities and retirement savings accounts (RSAs) in Australia serve a similar purpose to social security levies. These benefits are in addition to a means-tested age pension provided by the federal government.

    Employers must contribute a minimum percentage of an employee’s earnings to a superannuation fund or face a superannuation guarantee charge. The required percentage will gradually increase to 12%:

    • From 1 July 2022: 10.5%
    • From 1 July 2023: 11%
    • From 1 July 2024: 11.5%
    • From 1 July 2025: 12%

    Employees can choose to ‘sacrifice’ part of their salary for higher employer superannuation contributions. There are limits on how much can be contributed per year that receive favorable tax treatment.

    Individuals can also make non-concessional contributions to a superannuation fund. There are limits on these contributions based on age and superannuation balance.

    From 1 January 2023, individuals aged 55 or over can use the proceeds from the sale of their main residence to make limited ‘downsizer contributions’ to their superannuation fund.
    Superannuation funds are subject to complex tax rules. Tax treatment of superannuation benefits depends on factors such as the benefit components, amount, age, and payment type.

    Excise Duties:

    Excise duties apply to beer, spirits, liqueurs, tobacco, cigarettes, and petroleum products. Fuel tax credits are available for businesses and households using fuel.

     

    Stamp duties:

    States and territories charge stamp duty on various transactions, such as property conveyances, motor vehicles, insurance policies, and share transfers. Rates and exemptions vary by state.

    Import Duties:

    Imports are subject to duties under the Australian Customs Tariff, with a top rate of 5%.

    Personal tax – different types of income and gains

    Employment income

    Employee income, like salaries, wages, and bonuses, is part of a person’s assessable income. Australian residents must pay taxes on income earned overseas, but some exemptions apply. Tax treaties with other countries can also affect how income is taxed.

    Australians working abroad for at least 91 days can be exempt from income tax if their work is related to specific activities, such as overseas aid or military service, and if the income is not tax-exempt in the foreign country.
    Foreign workers in Australia must pay taxes on income earned while working in the country, regardless of where the money is paid or if it is sent to Australia.

    Non-cash benefits are also taxable for non-employee residents. Employers providing non-cash benefits to employees must pay a fringe benefits tax (FBT) at a rate of 47%. This tax is generally deductible for employers, and it doesn’t count towards an employee’s taxable income. However, it can impact things like healthcare surcharges, child support, and certain tax offsets.

    Employee share schemes (ESS) have special tax rules. Taxes apply to the discounted value of shares and options issued to employees through ESS. Some exemptions and deferrals are available under specific conditions. Start-up companies can offer additional concessions, like income tax exemptions and deferrals on certain shares and rights.

    For many companies, ESS disclosure and licensing requirements have been simplified. Australian residents must pay taxes on all discounts received through ESS, regardless of where the employment is located. Foreign residents are only taxed on discounts related to employment in Australia.

    Employers must report ESS information annually, and withholding tax (WHT) applies if an employee doesn’t provide a tax file number by the end of the income year when any applicable discount is subject to Australian tax.

    Business income

    Income earned by an individual through a trade, business, profession, or vocation is taxable. Individuals can deduct expenses related to earning that income or running a business, as long as the expenses are not personal, capital, or domestic in nature.

    To claim deductions for specific motor vehicle or travel expenses, individuals must meet the record-keeping requirements outlined in the substantiation provisions.

    Dividend income

    The dividend imputation system in Australia aims to prevent double taxation of corporate profits distributed to shareholders. When resident corporations pay dividends from their taxed profits (franked dividends), resident individual shareholders can claim a “franking offset” for the corporate tax paid on those profits. If the offset is more than the individual’s tax liability, they’ll receive a refund for the difference.

    Some payments, loans, and forgiven debts by private companies to shareholders (or associates) may be considered taxable dividends if the company has enough profits. This also applies when a shareholder (or associate) is allowed to use a private company’s asset, like real estate, a car, or boat, for free or at a reduced cost.

    Resident individuals pay tax on foreign-source dividend income but can claim a tax offset for foreign taxes paid on that income.
    Non-resident individuals generally don’t receive a franking offset for franked dividends, but they are exempt from withholding tax (WHT) on those dividends. They’re also exempt from WHT on unfranked dividends if the dividends come from specific foreign-source income and gains, and the company declares it as conduit foreign income (CFI).

    Unfranked dividends paid to non-residents are subject to a 30% WHT (often reduced to 15% with a tax treaty). The payer typically withholds this tax on the gross amount of the dividend and sends it to the Australian revenue authorities.

     

    Rental income

    Resident individuals are subject to Australian tax on the rental income derived from both Australian and foreign property. Non-resident individuals are subject to Australian tax on rental income derived from an Australian source. Gross rental receipts are included as assessable income in the individual’s tax return. A deduction for expenses incurred in deriving such income will be allowed. Where the deductions exceed the rental income, the resultant loss may be offset against the individual’s other income.

    A deduction is not allowed for travel costs in connection with a residential investment property, including costs incurred to inspect and maintain the property, collect rent, or visit the real estate agent, even if that is the sole purpose of the travel. In addition, for any residential rental property acquired under contracts entered into after 7:30 pm AEST on 9 May 2017, depreciation deductions for items of plant and equipment (e.g. dishwashers, ceiling fans, carpet, and hot water systems) in residential investment properties are limited to those assets that have not previously been used.

    Tax deductions are denied for expenses related to the holding of certain vacant land that is not used in carrying on a business for the purpose of producing assessable income. Vacant land does not include land on which there is a substantial and permanent structure or residential premises that is being constructed, or substantially renovated, but only where it is lawfully able to be occupied and is leased, hired, or licensed. There are exceptions to ensure that a land owner is not denied deductions when structures on the land are affected by natural disasters or exceptional circumstances, or when the land is owned by a primary producer or is subject to an arm’s-length lease arrangement to an entity who carries on a business on the land.

    Interest income

    Australian residents have to pay taxes on interest income from both local and international sources. If you don’t provide your tax file number to financial institutions or certain investment bodies in the way required by the tax commissioner, a withholding tax (WHT) will be applied to your domestic interest payments.

    For foreign-sourced interest income, Australian residents can generally get a tax offset for foreign taxes paid on that income (more information can be found in the foreign tax relief and tax treaties section).

    For non-residents, a WHT is charged on interest paid by an Australian resident or by a non-resident running a permanent establishment (PE) in Australia. However, if the non-resident earns the interest through a PE in Australia, WHT is not charged, and the interest is taxed at standard income tax rates.

    The WHT rate is typically 10% of the gross interest paid, but this rate can be reduced in some cases if certain tax treaties apply. The payer usually withholds the tax on behalf of the payee and sends it to the revenue authorities. The WHT is the final tax on the interest income in Australia.

    Capital gains

    Capital gains tax (CGT) applies to assets bought on or after September 20, 1985. When you sell these assets, the profit made is considered taxable income and is taxed at regular rates. Capital losses can only be offset against capital gains, not other types of income.

    If you’ve held an asset for at least 12 months, you may be eligible for a discount on your capital gains tax. For assets acquired after September 21, 1999, you’ll only pay tax on 50% of the gain. If the asset is qualifying affordable housing, the discount is 60%. Non-residents don’t receive this discount on gains made after May 8, 2012.

    For assets bought before September 21, 1999, you can choose between two methods to calculate your taxable capital gain: the discount method or the indexation method, which adjusts the gain based on inflation up to September 30, 1999.

    Australian residents, excluding temporary residents, pay tax on gains from assets located anywhere, with a tax credit available for foreign tax paid. Non-residents only pay CGT on Australian-based assets or specific assets connected to Australian real estate.

    Non-residents calculate their net capital gains similarly to residents, but they don’t receive the 50% discount on gains made after May 8, 2012. A non-final 12.5% withholding tax applies to non-residents’ sales of taxable Australian property, with the amount credited against their income tax liability.

    If a non-resident becomes an Australian resident, their assets (excluding those bought before September 20, 1985, and taxable Australian property) are treated as if they were acquired at their market value when they became a resident. Special rules also apply when a resident becomes a non-resident.

    The CGT main residence exemption doesn’t apply to foreign residents, but it may be available in cases of a “life event” related to health or family matters if the individual has been a non-resident for six years or less.

    SPOTLIGHT ARTICLE

    Texas Man Faces Historic Charges Over Crypto Capital Gains Tax

    Read more

    MEMBERSHIP LEVELS —

    What are the membership types available?

    Curator Native

    FREE

    The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Curator has additional responsibilities. They are tasked with the responsibility of managing and updating one of the jurisdiction pages. There is only one Curator membership available for each jurisdiction.

    Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    A Curator can also provide articles if they wish.

    READ MORE

    Creator Native

    FREE

    The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Creator has additional responsibilities. They commit to their other Natives that they will produce at least one piece of quality content each quarter – whether an article, video or other valuable content.

    There are multiple Creator memberships available for each jurisdiction. Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    READ MORE

    Adviser Native

    £65 / month

    The Adviser is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Adviser is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page. That’s cool.

    However, the Adviser will be eligible to pay the full monthly membership fee.

    READ MORE
    Become a curator

    TAX NATIVES: CURATOR

    Curator

    The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Curator has additional responsibilities. They are tasked with the responsibility of managing and updating one of the jurisdiction pages.

    There is only one Curator membership available for each jurisdiction.

    Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    READ MORE
    Become a creator

    TAX NATIVES: CREATOR

    Creator

    The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Creator has additional responsibilities. They commit to their other Natives that they will produce at least one piece of quality content each quarter – whether an article, video or other valuable content.

    There are multiple Creator memberships available for each jurisdiction. Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    Become an adviser

    TAX NATIVES: ADVISOR

    Adviser

    The Adviser is a fully-fledged member of the Tax Natives team.

    As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page.

    That's cool.

    However, the Adviser will be eligible to pay the full monthly membership fee.

    Initial admin fee £250 Free £250 Free £250 Free
    Minimum membership term 12 months 12 months 12 months
    Article contentCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    No
    YesCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    No
    Managing and updating your
    jurisdiction page
    Yes
    No
    No

    NATIVE

    FREE

    Read more

    TAX NATIVES: CURATOR

    Curator

    The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Curator has additional responsibilities. They are tasked with the responsibility of managing and updating one of the jurisdiction pages.

    There is only one Curator membership available for each jurisdiction.

    Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    Initial admin fee £250 Free
    Minimum membership term 12 months
    Article contentCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    No
    Managing and updating your jurisdiction page Yes

    FREE

    Read more

    TAX NATIVES: CREATOR

    Creator

    The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    However, the Creator has additional responsibilities. They commit to their other Natives that they will produce at least one piece of quality content each quarter – whether an article, video or other valuable content.

    There are multiple Creator memberships available for each jurisdiction. Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.

    Initial admin fee £250 Free
    Minimum membership term 12 months
    Content creationCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    YesCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    Managing and updating your jurisdiction page No

    £65 / month

    Read more

    TAX NATIVES: ADVISOR

    Adviser

    The Adviser is a fully-fledged member of the Tax Natives team.

    As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.

    The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page.

    That's cool.

    However, the Adviser will be eligible to pay the full monthly membership fee.

    Initial admin fee £250 Free
    Minimum membership term 12 months
    Content creationCreator and Curators must create at least one piece of original, quality-approved content each quarter.
    No
    Managing and updating your jurisdiction page No

    Bring your knowledge to the world.

    Become a tax native

    Contact us

    If you’re having any problems with your membership, account, or just generally loving Tax Natives. Drop us a line here and we’ll get back to you.

    Contact

    We collect personal information when you enquire about our services. We will use this information to provide the services requested, maintain records and, if you agree below, to send you marketing information. We will not share your infromation for marketing purposes with any other companies. For more information explaining how we use your information please see our Privacy Policy(Required)
    This field is for validation purposes and should be left unchanged.