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Personal Income Tax

 

Tax payers are generally required to pay a certain percentage of tax depending on their level of income. The following table shows how much tax is to be paid for particular ranges of income for the 2013/2014 financial year:

Taxable income Tax on this income
$0 – $18,200 Nil
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54, 547 plus 45c for each $1 over $180,000

As part of the 2014-15 Federal budget the Government announced that it will impose a temporary Budget repair levy of 2% on that part of a person’s taxable income which exceeds $180,000. They levy will apply to the 2014-15, 2015-16 and 2016-17  financial years.

Whether a person’s income is liable to be taxed depends on whether it is ordinary income, statutory income, exempt income, or non-assessable non-exempt income. Only ordinary and statutory incomes are assessable.

Ordinary Income

What may or may not be ordinary income may be a novel question in some circumstances, and Courts have established guidance by way of precedents throughout cases heard over the years.

Some relevant factors in helping to determine whether an amount is ordinary income include:

  • Whether the payment is the product of any employment, services rendered or any businesses;
  • The quality or character of the payment in the hands of the recipient;
  • Whether the amount is received as a lump sum or periodically; and
  • The motive of the person making the payment

Statutory Income

Statutory income is income specifically labelled as assessable income by legislation.

If you would like more information or assistance regarding Personal Income Tax. Complete and submit the Express Enquiry form on the top right hand side of this page and we will contact you to discuss your enquiry or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.