Tax Return:: 2020 - 2021 Tax Rates

Hello this is P&C Tax Professionals, a specialist in all things related to tax and super.

Similar to the previous LITO blog post we've uploaded, some changes have also been made to the tax rates for the 2021 financial year.

Today, we will take you through the changes that have been applied to the tax rates for each of the individual taxpayer categories (e.g., Residents, Working Holiday Makers and Foreign Residents).

First of all, let's start off with the resident tax rates:

If you take a look at the tax rate table above, you would be able to notice that the taxable income brackets for residents have increased for the 2021FY relative to the previous financial year.

Resident tax rates 2019 – 2020 (previous financial year):

Taxable income --> Tax on this income

$0 to $18,200 --> Nil

$18,201 to $37,000 --> 19c for each $1 over $18,200

$37,001 to $90,000 --> $3,572 plus 32.5c for each $1 over $37,000

$90,001 to $180,000 --> $20,797 plus 37c for each $1 over $90,000

$180,001 and over --> $54,097 plus 45c for each $1 over $180,000

(It is also important to note that the above rates do not include the Medicare levy of 2%).

Next up we have the working holiday maker (WHM) tax rates:

Once again, the taxable income brackets have increased for the working holiday makers relative to the 2020 financial year (i.e., the previous financial year).

Working holiday maker tax rates 2019 - 2020 (previous financial year):

Taxable income --> Tax on this income

$0 - $37,000 --> 15c for each $1

$37,001 - $90,000 --> $5,550 plus 32.5c for each $1 over $37,000

$90,001 - $180,000 --> $22,775 plus 37c for each $1 over $90,000

$180,001 and over --> $56,075 plus 45c for each $1 over $180,000

The above rates apply to working holiday makers who have been holding the following visas in Australia:

• Working Holiday – Subclass 417

• Work and Holiday – Subclass 462

Last but not least, we have the income tax rates for foreign residents:

In comparison to the 2019-2020 financial year, the taxable income bracket has increased again.

Foreign resident tax rates 2019 - 2020 (previous financial year):

Taxable income --> Tax on this income

$0 - $90,000 --> 32.5c for each $1

$90,001 - $180,000 --> $29,250 plus 37c for each $1 over $90,000

$180,001 and over --> $62,550 plus 45c for each $1 over $180,000

The above rates apply to individuals who are considered to be foreign residents for tax purposes.

If you any further queries on matters relating to tax and super, please do not hesitate to contact us through our Official Facebook Page (P&C Tax Professionals – Australia) or simply email your questions to our email address at: pnctax@naver.com.

Thank you and bye for now :)