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Tax Facts  Return to List of Tax Facts

Income Tax

Income tax is levied on taxable income, which is calculated as [assessable income] less [any allowable deductions]. Deductions include wages, cost of stock, rent, bad debts, and previous year losses.


INDIVIDUAL

You can use the tax tables to determine how much you are taxed.

Resident Tax Rates 2010-11

Taxable income Tax on this income
$1 - $6,000 $0
$6,001 - $37,000 15c for each $1 over $6,000
$37,001 - $80,000 $4,650 plus 30c for each $1 over $37,000
$80,001 - $180,000 $17,550 plus 37c for each $1 over $80,000
$180,001 and over $54,550 plus 45c for each $1 over $180,000

Nonresident Tax Rates 2010-11

Taxable income Tax on this income
$0 - $37,000 29c for each $1
$37,001 - $80,000 $10,730 plus 30c for each $1 over $37,000
$80,001 - $180,000 $23,630 plus 37c for each $1 over $80,000
$180,001 and over $60,630 plus 45c for each $1 over $180,000

MORE: See the ATO website for more information on Individual Income Tax Rates.

COMPANY

A company is a distinct legal entity with its own income tax liability so a 2010 Company Tax Return must be completed for each company. A company's income tax is calculated as a percentage of the taxable income the company earned during the financial year. The company tax rate is 30%.

MORE: 2010 Company Tax Return instructions are available on the ATO website.

PARTNERSHIP

A partnership running a business must complete a 2010 Partnership Tax Return to show all income earned and deductions claimed for expenses during the course of the business and how the profit or loss was shared between the partners. Each partner pays tax on their share of the partnership's income so they must include their individual share of the net partnership profit or loss in their personal tax return. 

MORE: 2010 Partnership Tax Return instructions are available on the ATO website.

SOLE TRADER

Sole traders are not required to complete a separate return for their business. They use their personal income tax return to report their business income and deductions.

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