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Australia
Individual - Taxes on personal income
Last reviewed - 16 December 2024A resident individual is subject to Australian income tax on a worldwide basis, i.e. income from both Australian and foreign sources (except for certain foreign income and gains of temporary residents; see Capital gains under the Income determination section for more information).
A non-resident individual is liable to Australian income tax only on income (other than interest, royalties, and dividends, which are generally subject to withholding tax [WHT]) derived from sources in Australia, and certain statutory income that is taxable on a basis other than source (e.g. certain capital gains).
Australia has no surtaxes, alternative, or other income taxes on personal income.
Personal income tax (PIT) rates
From 1 July 2024, a revised phase of tax cuts has been legislated to take effect. The following tables set out the PIT rates that apply to resident and non-resident individuals for the years ending 30 June 2025 and 30 June 2024.
Residents
The following table applies to the 2024/25 financial year, i.e. from 1 July 2024 until 30 June 2025.
| Taxable Income (AUD*) | Tax on column 1 (AUD) | Income tax on excess (%) | |
| Over | Not over | ||
| 0 | 18,200 | - | 0 |
| 18,200 | 45,000 | - | 16.0 |
| 45,000 | 135,000 | 4,288 | 30.0 |
| 135,000 | 190,000 | 31,288 | 37.0 |
| 190,000 | 51,638 | 45.0 | |
*Australian dollars
Residents
The following table applies to the 2023/24 financial year, i.e. from 1 July 2023 until 30 June 2024.
| Taxable Income (AUD*) | Tax on column 1 (AUD) | Income tax on excess (%) | |
| Over | Not over | ||
| 0 | 18,200 | - | 0 |
| 18,200 | 45,000 | - | 19.0 |
| 45,000 | 120,000 | 5,092 | 32.5 |
| 120,000 | 180,000 | 29,467 | 37.0 |
| 180,000 | 51,667 | 45.0 | |
*Australian dollars
Note: These tables do not include the Medicare levy of an additional 2% of taxable income, which applies to most residents. An additional Medicare levy surcharge of between 1% and 1.5% applies to certain higher income taxpayers not covered by health insurance for private patient hospital cover. Special rates apply to unearned income of children below the age of 18 years at year end where that income is more than AUD 416.
In addition, the above tables do not include tax offsets, including the Low Income Tax Offset (maximum of AUD 700 for those earning up to AUD 37,500) that can apply to reduce the overall tax payable for those with taxable income up to AUD 66,667.
Non-residents
The following table applies to the 2024/25 financial year, i.e. from 1 July 2024 until 30 June 2025.
| Taxable income (AUD) | Tax on column 1 (AUD) | Income tax on excess (%) | |
| Over | Not over | ||
| 0 | 135,000 | - | 30.0 |
| 135,000 | 190,000 | 40,500 | 37.0 |
| 190,000 | 60,850 | 45.0 | |
The following table applies to the 2023/24 financial year, i.e. from 1 July 2023 until 30 June 2024.
| Taxable income (AUD) | Tax on column 1 (AUD) | Income tax on excess (%) | |
| Over | Not over | ||
| 0 | 120,000 | - | 32.5 |
| 120,000 | 180,000 | 39,000 | 37.0 |
| 180,000 | 61,200 | 45.0 | |
Note: Non-residents are not required to pay the Medicare levy in Australia.
The above does not take into account any tax offsets that may apply.
Working holiday makers
Special income tax rates apply to a working holiday maker who is typically an individual holding a temporary working holiday visa or a work and holiday visa in Australia. The first AUD 45,000 of a working holiday makers' income (broadly, the assessable income derived from sources in Australia, less related deductions) is taxed at 15%, with the balance taxed at ordinary rates.
Local income taxes
There are no local taxes on personal income in Australia.
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