The tax rate in Australia is progressive, meaning that it increases as income increases. The current tax-free threshold for resident individuals is AUD 18,200, and the highest marginal rate for individuals is 45% . In addition, most Australians are liable to pay the Medicare levy, which is 2% of taxable income. The following table shows the income tax rates for Australian residents for the financial year 2023-24:
| Income thresholds (AUD) | Rate | Tax payable on this income |
|---|---|---|
| 0 – 18,200 | 0% | Nil |
| 18,201 – 45,000 | 19% | 19c for each $1 over $18,200 |
| 45,001 – 120,000 | 32.5% | $5,092 plus 32.5c for each $1 over $45,000 |
| 120,001 – 180,000 | 37% | $29,467 plus 37c for each $1 over $120,000 |
| 180,001 and over | 45% | $51,667 plus 45c for each $1 over $180,000 |
It is important to note that these rates do not include the Medicare levy of 2% .
