Personal Income Tax Rates – Changes for 2017/18

The 2% Temporary Budget Repair Levy (TBRL), which has applied to individuals with a taxable income exceeding $180,000 since 1 July 2014, is repealed with effect from 1 July 2017.

Accordingly, with the benefit of the removal of the TBRL, from 1 July 2017, individual resident taxpayers with a taxable income exceeding $180,000, face an effective marginal tax rate of 47% (including the Medicare Levy but not including the Medicare Levy Surcharge).

Other taxes that are ordinarily linked to the highest marginal rate (for example, Family Trust Distribution Tax) will also decrease by 2% as of 1 July 2017.