Personal Tax

For individuals in Australia, being a resident has the following tax implications:

• They are subject to tax on their worldwide income and taxable capital gains.
• However, they may be able to claim a foreign tax credit in the form of a tax offset for taxes paid on foreign income within certain limits.
• The following marginal tax rates apply to the taxable income of resident individuals for the year ending June 30, 2022:

• 0% on the first AUD 18,200 of taxable income.
• 19% on taxable income between AUD 18,201 and AUD 37,000.
• 5% on taxable income between AUD 37,001 and AUD 90,000.
• 37% on taxable income between AUD 90,001 and AUD 180,000.

Please note that temporary residents are subject to different tax rules. They are generally only taxed on Australian-sourced income and certain foreign income that is received in Australia.

There are income tax offsets available for low- and middle-income earners that can reduce the overall tax they owe. These offsets are only available until the end of the financial year 2022. Non-residents are taxed on their first AUD1 of taxable income at a rate of 32.5% and on the rest of their taxable income at the rates mentioned above. Special tax rates also apply to income earned by “working holiday makers” regardless of their residency status for tax purposes.

From July 2024, the top marginal tax rate will apply to incomes above AUD200,000 and a 30% tax rate will apply to taxable incomes between AUD45,001 and AUD200,000.”