Australia

A 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

The following tables set out the PIT rates that currently apply to resident and non-resident individuals for the year ending 30 June 2023. These rates and thresholds are planned to continue until 30 June 2024. 

From 1 July 2024, a revised phase of tax cuts has been legislated to take effect. Under the new tax rate schedule the 19% marginal tax rate will be reduced to 16% and apply to taxable income between AUD 18,200 and AUD 45,000, a 30% marginal tax rate will apply to taxable income between AUD 45,000 and AUD 135,000, a 37% marginal tax rate then will apply up to AUD 190,000 after which the top marginal tax rate of 45% applies. 

Residents

The following table applies to the 2022/23 and 2023/24 financial years, i.e. until 30 June 2024.

Note: This table does 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 table does 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 (note that the Low and Middle Income Tax Offset does not apply after the 2021/22 income year). 

Non-residents

2022/23 and 2023/24 financial years:

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.