2017-18 Federal Budget: Personal Taxes and Medicare
Personal taxes
The option of claiming a standard tax deduction for work expenses has long been talked about, in the hope of simplifying personal tax returns. It was speculated to be delivered in this year’s Federal Budget, however was not to be.
The 2017-18 Budget also contained no changes to the personal income tax rates and thresholds. This means that the Temporary Budget Repair Levy (2% on incomes over $180,000) will still expire at the end of the 2016-17 financial year.
The rates (including the 2% temporary budget repair levy but excluding the Medicare levy) are:
| Taxable income $ | 2016-17
Tax payable $ |
2017-18
Tax payable $ |
| 0 – 18,200
|
Nil
|
Nil |
| 18,201 – 37,000
|
Nil + 19% of excess over 18,200 | Nil + 19% of excess over 18,200 |
| 37,001 – 87,000
|
3,572 + 32.5% of excess over 37,000 | 3,572 + 32.5% of excess over 37,000 |
| 87,001 – 180,000
|
19,822 + 37% of excess over 87,000 | 19,822 + 37% of excess over 87,000 |
| 180,001+
|
54,232 + 47% of excess over $180,000 | 54,232 + 45% of excess over $180,000 |
Medicare levy increase
The Medicare levy will be increased from 2% to 2.5% from 1 July 2019. The government says this is to ensure the National Disability Insurance Scheme (NDIS) is fully funded, and to fund a new Medicare Guarantee Fund.
Low-income earners will remain exempt from paying the Medicare levy.
More about the 2017-18 Federal Budget:
- Economic outlook, infrastructure and development
- Housing affordability and availability top budget items
- Businesses will benefit from planning
- Government continues to tinker with Superannuation rules
- Read about the key Federal Budget announcements we think will matter most to our readers in our full Federal Budget Wrap-Up
