Shane Roberts and Associates Pty Ltd

Overview of Partnership Tax Rates

At present, Partnership Tax Rates are the same as Individual Tax Rates.

In Australia, a taxpayer's income is taxed progressively. Broadly, this means that as you earn more income your average tax rate rises.

Progressive taxation means that higher income earners pay more tax than lower income earners. This is achieved by taxing a range of income brackets as a set percentage or cents in the dollar. These income brackets are called tax brackets.

The rate of tax within these brackets is called the marginal rate of tax. For Australian residents, the first tax bracket, from $0 to $6,000, has a zero marginal rate of tax. Tax is applied to every dollar after this figure. This tax-free amount is called the tax-free threshold.

Residents

These rates apply to individuals who:

are residents of Australia for tax purposes for the whole financial year and did not leave full-time education for the first time during the financial year.

Tax rates 2011/2012

The following table details the tax brackets of our progressive tax system for the financial year ending 30 June 2012.

Taxable income	Tax on this income
$0 – $6,000	Nil
$6,001 – $37,000	15c for each $1 over $6,000
$37,001 – $80,000	$4,650 plus 30c for each $1 over $37,000
$80,001 – $180,000	$17,550 plus 37c for each $1 over $80,000
$180,001 +	$54,550 plus 45c for each $1 over $180,000

The Medicare levy (1.5% of taxable income) may also be payable on top of the above rates.
 
The above rates do not include the Flood levy.
 

How do salary and wage earners pay the flood levy?

For most people, your employer withholds an amount from your regular pay for tax purposes. Starting from July 2011, if you earn over $50,000 your employer will take an additional amount out from each pay to include the flood levy.

Example
Lloyd has a taxable income of $80,000. Lloyd does not pay the flood levy on his first $50,000 as the flood levy does not apply to the first $50,000 of taxable income. Therefore, Lloyd will only pay the flood levy on $30,000 of his income ($80,000 - $50,000).
The flood levy Lloyd will pay is $150 ($30,000 x 0.5%).

Tax rates 2010/2011

The following table details the tax brackets of our progressive tax system for the financial year ending 30 June 2011.

Taxable income	Tax on this income
$0 – $6,000	Nil
$6,001 – $37,000	15c for each $1 over $6,000
$37,001 – $80,000	$4,650 plus 30c for each $1 over $37,000
$80,001 – $180,000	$17,550 plus 37c for each $1 over $80,000
$180,001 +	$54,550 plus 45c for each $1 over $180,000

The Medicare levy (1.5% of taxable income) may also be payable on top of the above rates.
 

Tax rates 2009/2010

The following table details the tax brackets of our progressive tax system for the financial year ending 30 June 2010.

Taxable income	Tax on this income
$0 – $6,000	Nil
$6,001 – $35,000	15c for each $1 over $6,000
$35,001 – $80,000	$4,350 plus 30c for each $1 over $35,000
$80,001 – $180,000	$17,850 plus 38c for each $1 over $80,000
$180,001 +	$55,850 plus 45c for each $1 over $180,000

The Medicare levy (1.5% of taxable income) may also be payable on top of the above rates.
 

Tax rates 2008/2009

The following table details the tax brackets of our progressive tax system for the financial year ending 30 June 2009.

Taxable income	Tax on this income
$0 – $6,000	Nil
$6,001 – $34,000	15c for each $1 over $6,000
$34,001 – $80,000	$4,200 plus 30c for each $1 over $34,000
$80,001 – $180,000	$18,000 plus 40c for each $1 over $80,000
$180,001 +	$58,000 plus 45c for each $1 over $180,000

The Medicare levy (1.5% of taxable income) may also be payable on top of the above rates.
 

Tax rates 2007/2008

The following table details the tax brackets of our progressive tax system for the financial year ending 30 June 2008.

Taxable income	Tax on this income
$0 – $6,000	Nil
$6,001 – $30,000	15c for each $1 over $6,000
$30,001 – $75,000	$3,600 plus 30c for each $1 over $30,000
$75,001 – $150,000	$17,100 plus 40c for each $1 over $75,000
$150,001 +	$47,100 plus 45c for each $1 over $150,000

Tax rates 2006-07

The following table details the tax brackets of our progressive tax system for the financial year ending 30 June 2007.

Taxable income	Tax on this income
$0 – $6,000	Nil
$6,001 – $25,000	15c for each $1 over $6,000
$25,001 – $75,000	$2,850 plus 30c for each $1 over $25,000
$75,000 – $150,000	$17,850 plus 40c for each $1 over $75,000
Over $150,000	$47,850 plus 45c for each $1 over $150,000

Tax rates 2005-06

The following table details the tax brackets of our progressive tax system for the financial year ending 30 June 2006.

Taxable income	Tax on this income
$0 – $6,000	Nil
$6,001 – $21,600	15c for each $1 over $6,000
$21,601 – $63,000	$2,340 plus 30c for each $1 over $21,600
$63,001 – $95,000	$14,760 plus 42c for each $1 over $63,000
Over $95,000	$28,200 plus 47c for each $1 over $95,000

The Medicare levy (1.5% of taxable income) may also be payable on top of the above rates.