TABL2751 BUSINESS TAXATION

Tax Calculations
TAX RATES
The Tax Rate Schedule for Australian Resident Individuals for the Income Year 2014-15
TAXABLE INCOME
Less than $18,200
$18,201 to $37,000
$37,001 to $80,000
$80,001 to $180,000
$180,001 +

TAX ON INCOME
NIL
19c for each dollar over $18,200
$3,572 + 32.5c for each dollar over $37,000
$17,547 + 37c for each dollar over $80,000
$54,547 + 45c for each dollar over $180,000

--------------The Medicare Levy Schedule: Australian Resident Individuals for the Income Year 201415.
TAXABLE INCOME
Less than $20,542
Between $20,542 and $24,167
$24,167 +

Medicare Levy
Nil
10c for each dollar over $20,542
2c for each dollar of your taxable income

--------------The Medicare Levy Surcharge Schedule applicable to some taxpayers (broadly, individuals
without private patient hospital health insurance, and who have taxable income above
$84,000) who are Australian Resident Individuals for the Income Year 2014-15
TAXABLE INCOME
$88,001 to $102,000
$102,001 to $136,000
$136,001 +

Medicare Levy Sucharge

1c for each dollar of your taxable income
1.25c for each dollar of your taxable income
1.5c for each dollar of your taxable income

--------------Tax Offset for Individuals that are Australian Residents (and Low-Income Earners) for
the Income Year 2014-15
TAXABLE INCOME (TI)
$0 - $37,000
$37,001 - $66,666
$66,667 or more
---------------

TAX OFFSET
$445
$445 - ([Taxable Income - $37,000] x 1.5%)
NIL

The Tax Rate Schedule for Non-Resident Individuals for the Income Year 2014-15
TAXABLE INCOME
Less than $80,000
$80,001 to $180,000
$180,001 +

TAX ON INCOME
32.5c for each dollar over nil
$26,000 + 37c for each dollar over $80,000
$63,000 + 45c for each dollar over $180,000

--------------The Temporary Budget Repair Levy for Individuals (both Australian Residents and nonresident) for the Income Year 2014-15
TAXABLE INCOME (TI)
LEVY
$180,001 +
2c for each dollar over $180,000
--------------Higher Education Loan Programme (HELP) Repayment Rate Schedule for Taxpayers
(Individuals) with an outstanding HELP Debt for the Income Year 2014-15
2014-15 REPAYMENT INCOME
(BROADLY, TAXABLE INCOME)
Below $53,345
$53,345 - $59,421
$59,422 - $65,497
$65,498 $68,939
$68,940 - $74,105
$74,106 - $80,257
$80,258 - $84,481
$84,482 - $92,970
$92,971 - $99,069
$99,070 and above

RATE OF REPAYMENT
(PERCENTAGE OF TAXABLE INCOME)
Nil
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%

--------------The Tax Rate for Companies (Private or Public) for the Income Year 2014-15
Companies pay a flat tax rate of 30% on their taxable income.
--------------Fringe Benefits Tax
FBT Year
2013 2014
2014 2015
2015 2016

Gross-up rate for

Type 1
Fringe Benefit
2.0647
2.0802
2.1463

Gross-up rate for

Type 2
Fringe Benefits
1.8692
1.8868
1.9608

FBT rate
46.5%
47.0%
49.0%

EXAMPLE TAX CALCULATION

Cheryl, aged 32 and single, has a taxable income of $91,000 for the 2014-15 income year.
Cheryl does not have private patient hospital health insurance. Cheryl has a FEE-HELP debt
of $7,560 as at 30 June 2015. Cheryl has a tax offset of $3,500 for the 2014-15 income year.
Tax
Tax on $80,000
Tax on $11,000 ($91,000 - $80,000) at 37%

= $17,547
= $4,070

Subtract Tax Offsets

$21,617
($3,500)
$18,117

Add Medicare Levy (2.0%)

Add Medicare Levy Surcharge (1.0%)

= $1,820
= $910

$2,730

Add HELP Repayment

Repayment on $91,000 at 7.0% * =
Liability to ATO

($18,117 + $2,730 + $6,370) =

$6,370
$27,217

* Note that the HELP repayment income schedule is not a progressive rate schedule; it is
different to the income tax rate schedule for individuals.
Variation on Example
If Cheryls FEE-HELP debt as at 30 June 2015 were only $4,270, she would only be liable
for $4,270 (and not $6,370).
------------Activity (Self-study)
What would be Cheryls liability to the ATO if her taxable income was $110,000 (apart from
this change, you can assume the same facts as the first calculation).