Tax rates 2016-17

The following rates for 2016-17 apply from 1 July 2016.

Taxable income	Tax on this income
0 - $18,200	Nil
$18,201 - $37,000	19c for each $1 over $18,200
$37,001 - $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 1.5% (see Guide to Medicare levy for more information in the ATO website).

May05

The Government co-contribution scheme

Under the Government co-contribution scheme, the Government provides a matching contribution for contributions made into superannuation using after-tax income.
The matching contribution is up to $500 for individuals with total income of up to $36,021 in 2016/17, with the amount available phasing down for incomes up to $51,020.
These thresholds will not be indexed until 2016/17.

Financial Year	2016/17
The maximum Government contribution	up to $500
Reduction (per dollar of income in excess of the lower threshold)	$0.03333

May05

Low income superannuation contribution

Concessional contributions are taxed up to 15% (provided the concessional cap is not exceeded) unless your annual income exceeds $300,000 in which case the tax on your contributions increases to 30 per cent.

Where an individual’s income is below $37,000, their income will be taxed at their marginal tax rate (MTR) of between 0 per cent to 19 per cent (2016/17tax rates). This means that when individuals who fall within this category make concessional contributions to superannuation they are potentially paying more tax than they would had they not made any contributions.

From 1 July 2012, a low income superannuation contribution (LISC) is available to individuals who:

• have adjusted taxable income of $37,000 or less
• are not temporary visa holders
• 10% of the person’s total assessable income, reportable employer superannuation contributions and reportable fringe benefits for the financial year is attributable to eligible employment, carrying on a business or a combination of both, and
• have concessional contributions of $20 or more.

The LISC in effect, seeks to refund the tax paid on concessional contributions to the low income earners superannuation account

Low income superannuation contribution	2016/17
Adjusted taxable income (ATI)1	LISC amount
$0 - $37,000	15% of concessional contributions (with a maximum LISC of $500)
$37,001 or more	Nil

1ATI includes taxable income plus total net investment losses, target foreign income, adjusted fringe benefits, certain tax-free social security pensions or benefits and reportable superannuation contributions less any deductible child maintenance expenditure.

Low income definition < $899 a week or $46,748 pa – note 8 weeks prior income mustn’t be above the weekly threshold even if the year is below!

Super Contribution Caps	2016 - 2017
Deducted (15% tax payable)	Undeducted (no tax payable as tax already taken from these monies usually as income tax)
$30,000 for under 49’s	$180,000 p.a
$35,000 for over 49’s in 2016 FY	( or $540,000 if brought forward 3 years)
Payment types
Employer SGC and other employer payments, Self employed contributions and salary sacrific	After income tax has been paid

Note as of 1 July 2017 it is proposed that a flat cap of $25,000 is to apply regardless of age.