Income Tax Rates 2017

Personal income tax changes

What are the proposed changes?

Table 1 shows both the current and proposed personal income tax rates for Australian tax residents.

Table 1: Current and proposed personal marginal income tax rates, $p.a.
Current From 1 July 2016
Taxable Income Rate % Taxable Income Rate %
0–18,200 Nil 0–18,200 Nil
18,201–37,000 19 18,201–37,000 19
37,001–80,000 32.5 37,001–87,000 32.5
80,001–180,000 37 87,001–180,000 37
180,001 and over 45 180,001 and over 45

 

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Remission of penalties

Tax laws authorise the ATO to impose administrative penalties for a range of conduct, including not taking reasonable care in claiming a deduction to which you are not entitled or making a false or misleading statement.

The purpose of the penalty provisions is to encourage taxpayers to take reasonable care in complying with their obligations.

The law specifies the conditions making you liable to a penalty and the amount of the penalty. However, ATO have discretion to reduce (remit) the penalty amount according to individual circumstances, so ATO frequently remit a penalty before advising you of your tax debt.

If you’re dissatisfied with a penalty imposed on you, you may, in most cases, ask us to remit it. You can also object to some penalties through the objection process.

How to request a remission of penalty

You can ask for a reduction or cancellation of any penalty (referred to as partial or full remission), including penalties for failing to:

  • lodge documents on time
  • withhold amounts as required (PAYG withholding system)
  • meet other tax obligations.

You can make your request:

  • through the online Business or Tax Agent portals (you must be registered)
  • by phone (for small penalties and simple cases)
  • by fax or mail to the address given in the letter advising you of the penalty.

For large penalties, or complicated cases, ATO recommend you write to us. In some circumstances, ATO may ask you to put your request in writing.

When requesting a review of a penalty, include the following information:

  • your full name
  • the name, postal address and daytime phone number (if convenient) of a person ATO can contact about this request
  • your tax file number (TFN) or Australian business number (ABN)
  • the reference number from the letter advising you of our decision
  • the reasons you think it is fair and reasonable for us to remit the penalty in your situation.

For more information on Etax, Mytax and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

How to claim the tax-free threshold

If you are an Australian resident for tax purposes, the first $18,200 of your yearly income is not taxed. This is called the tax-free threshold. When you start a job, your payer (employer) will give you a Tax file number declaration (NAT 3092) to complete. Centrelink is also a payer and they will give you this form if you apply for their payments.

You tell your payer you want to claim the tax-free threshold by placing X in the Yes box at question 8 ‘Do you want to claim the tax-free threshold from this payer?’

You have 28 days to give your payer a completed Tax file number declaration with your tax file number (TFN) on it or to claim an exemption from quoting a TFN. You can claim an exemption if you do not earn enough income to pay tax and you are under 18 years old.

After that time, your payer must start taking tax out of your pay at a rate of 49%.

If you don’t have or have forgotten your TFN, you can indicate on the Tax file number declaration that you are making an application or enquiry to get your TFN. This will mean your payer will tax you at the normal rates for 28 days.

However, if you have not provided your TFN at the end of the 28 days, they must start taking tax out of your pay at a rate of 49%.

What if you have more than one payer?

If you have more than one payer at the same time, ATO generally require that you only claim the tax-free threshold from the payer who usually pays the highest salary or wage (this is known as the primary source of income).

For more information on Etax, Mytax and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au