Income Tax Rates – Residents

There were no changes to the personal tax rates. The currently legislated personal tax rates (including 2% Temporary Budget Repair Levy, but excluding the 2% Medicare Levy) for Australian residents are as follows:

Changes to work-related car expense deductions

The ‘12% of original cost’ and ‘1/3rd of actual expenses’ methods to calculate work-related car expenses will be abolished from 1 July 2015.  Also, the ‘cents per kilometre’ method will be changed, with one rate of 66 cents per kilometre being applicable to all cars. The current ‘logbook’ method will be retained.

Zone Tax Offset

From 1 July 2015 workers who are employed under ‘fly-in fly-out’ and ‘drive-in drive-out’ arrangements will no longer be eligible for the offset where their normal residence is not within a ‘zone’.

Higher Education Loan Programme

Arrangements will be introduced from 1 July 2016 to ensure Australians residing overseas repay both new and existing HELP debts when the minimum HELP repayment threshold is reached.

Non-resident tax treatment for those on working holidays

From 1 July 2016 the tax residency rules will be changed to treat most people who are temporarily in Australia for a working holiday as non-residents for tax purposes. These people will no longer have access to a tax-free threshold and will instead be taxed at 33% from their first dollar of income, up to $80,000, with income above that amount taxed at the same rates as residents.


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