Australia

Tax Rates and Thresholds 2022-23

These tax rates and thresholds were produced as an information service and without assuming duty of care. This information is based on our interpretation of relevant superannuation and taxation laws as at 1 July 2022.
William Buck is an association of firms, each trading under the name of William Buck across Australia and New Zealand with affiliated offices worldwide.

Lodgment and Payment dates

Companies and Superannuation Funds

Taxpayer 2022 Tax Return (30 June Year End)
Lodgment date Payment date
All taxpayers
All entities with one or more outstanding tax returns as at 30 June 2022.(1) 31 October 2022 1 December 2022
Large/Medium taxpayers whose prior year tax return was taxable.(2) 15 January 2023 1 December 2022
Non-taxable and new registrant large/medium taxpayers(2), new registrant head companies of consolidated groups, new registrant self-managed superannuation funds, and subsidiary members of a consolidated group that have exited the consolidated group in the financial year. 28 February 2023 28 February 2023
Companies and superannuation funds with total income in excess of $2M (per latest return lodged) but not medium/large.(2) 31 March 2023 31 March 2023
Remaining companies(3), and superannuation funds. 15 May 2023 15 May 2023

(1) If all outstanding tax returns are lodged prior to 31 October 2022, the lodgment due date should revert back to normal.

(2) Large taxpayers include:

  • Companies and trusts that have annual total income of more than $10M, members of a large business group, and public companies;
  • Superannuation funds with income of more than $10M, or investments of more than $50M or non-complying superannuation funds; and
  • Head companies of consolidated groups or MEC groups with an annual total income greater than $10 million (through the single entity rule).

(3) Includes head companies of tax consolidated and MEC groups.

Corporate Tax

Corporate Tax Rates – 2021/22 & 2022/23

Current year Base rate entity(2) Other companies
2021/22 & 2022/23 (1) 25% 30%

(1) Effective 1 July 2018 the base rate entity turnover threshold increased to $50M and hasn’t been adjusted since.

(2) The definition of “base rate entity” limits the ability to access the lower corporate tax rate to companies with no more than 80% passive income (as defined).

Franking Rates – 2021/22 & 2022/23

Income year dividend paid Prior year turnover Rate for franking purposes
2022 Less than $50m 25%
$50m or more 30%
2023 Less than $50m 25%
$50m or more 30%

Motor Vehicle Depreciation Cost Limit

Year

Depreciation Limit

2021/2022 $60,733
2022/2023 $64,741

Interest Rates

Year Division 7A benchmark interest rate Unpaid present entitlement and
sub-trust prescribed interest rate
7-year loan 10-year loan
2021/22 4.52% 4.52% 6.51%
2022/23 4.77% 4.77% (1) 6.82% (1)

(1) Note that these rates only apply to sub-trusts arising prior to 1 July 2022.

Small Business Taxpayers – Depreciation Limits for Business Assets

Turnover Eligibility Restrictions Deduction
From 12 March 2020 to 6 Oct 2020 (General Small Business Pool)
Less than $10m aggregated turnover Cost $150,000 or more.
Balance of the small business pool at the end of an income year ending between 6 Oct 2020 and 30 June 2023 is written off.
15% first year
30% thereafter
From 12 March 2020 to 30 June 2021 (Instant Asset Write-off Incentive)
Less than $500m aggregated turnover Cost less than $150,000.
Provided the asset was purchased by 31 December 2020.
Immediate
From 12 March 2020 to 30 June 2021 (Backing Business Investment Incentive)
Less than $500m aggregated turnover Must be a new asset
No cost restriction
50% of cost
Less than $10m aggregated turnover

Cost $150,000 or more
Not eligible for temporary full expensing incentive

57.5% of cost
From 7:30pm (AEDT) 6 October 2020 to 30 June 2023 (Temporary Full Expensing Incentive)
Less than $50m aggregated turnover No cost restriction Immediate
Less than $5B aggregated turnover No cost restriction
Must be a new asset
Immediate

Fringe Benefits Tax (FBT)

FBT Rates – Year ending 31 March 2023
FBT rate

47%

FBT benchmark interest rate 4.52%
 

FBT gross-up rates

Type 1 benefits 2.0802
Type 2 benefits 1.8868
Car park benefit threshold (per day) $9.72
Motor vehicle statutory formula percentage(1) 20%

(1) Contracts entered into before 7:30pm (AEST) on 10 May 2021 may be subject to a different rate

Superannuation

Superannuation Balance Caps – 2021/22 & 2022/23

As of 30 June 2022 As of June 2023
Transfer Balance Cap (TBC)(1) (3) $1.7m $1.7m
Total Superannuation Balance (TSB) Cap(2) $1.7m $1.7m

(1) TBC limits the total amount an individual can transfer into the Retirement Phase of superannuation.

(2) TSB is relevant for determining eligibility to make certain superannuation contributions. An individual’s TSB that equals or exceeds the cap at 30 Jun of the prior financial year cannot make non-concessional contributions.

(3) From 1 July 2021, all Individuals will have a personal transfer balance cap between $1.6 million and $1.7 million. Individuals who start their first retirement phase income stream on or after 1 July 2021 will have a personal transfer balance cap of $1.7 million. Individuals who had a personal transfer balance account before 1 July 2021 will have a personal transfer balance cap calculated proportionally based on the highest balance of their transfer balance account. Their personal transfer balance cap will not be increased if, at any time before 1 July 2021, the balance of their transfer balance account met or exceeded $1.6 million.

Superannuation Contributions Caps - 2021/22 & 2022/23

Contribution Age at 30 June Cap (from 1 July 2022) Contributions tax
Concessional All ages $27,500

15% tax on contributions within cap.

Tax on excess (1)
Individual’s marginal tax rate.

Division 293
Further 15% tax if individual’s income (adjusted by Div 293) is over $250,000.

Non–concessional (2)(3) Under 67 (2021/22)
Under 75 (2022/23)
$110,000 (or $330,000
over 3 years)

Tax on excess(1) – option 1
Release excess and 85% of associated earnings. All associated earnings taxed at individual’s marginal tax rate.

Tax on excess(1) – option 2
47% on excess non-concessional contributions.

Under 75 (2021/22) $110,000

(1) Applicable from 1 Jul 2013.
(2) From 1 July 2022, you may be eligible to make non-concessional contributions of up to three times the annual non-concessional contributions cap in a single year. If eligible, when making contributions greater than the annual cap, you gain access to future year caps, referred to as “bring forward” option.
(3) The ability to make non-concessional contributions may be limited by the member’s account balance, its proximity to the superannuation balance cap, and whether the member satisfies the work test.

Age Restrictions on Superannuation Contributions – 2022/23

Age

Acceptance of contributions

Under 60 All contributions can be accepted, except downsizer contributions
60 to 74 All contributions can be accepted
75 and over Mandated employer contributions(1) and downsizer contributions

(1) May still be the ability to make additional contributions up to 28 days after the end of the month in which the member turns 75.

Preservation age

Date of birth Preservation age
Before 1 July 1960 55
1 July 1960 to 30 June 1961 56
1 July 1961 to 30 June 1962 57
1 July 1962 to 30 June 1963 58
1 July 1963 to 30 June 1964 59
From 1 July 1964 60

Taxation of Superannuation Benefits

Superannuation income streams – element taxed(1) in fund

Age at 1 July Tax implications
Under preservation age Assessable at marginal rates.
15% tax offset on taxed element of a disability super benefit only.
At or above preservation age
(but under 60)
Assessable at marginal rates.
15% tax offset on taxed element.
60 and over Untaxed element assessable at marginal rates, with 10% tax offset.
No tax on taxed element.

Superannuation lump sums

Age at lump sum date Tax rate(3)
Taxable – taxed(1) Taxable – untaxed
Under preservation age 20% Within plan cap – 30%
Excess above plan cap – 45%
At or above preservation age (but under 60) Within cap – Nil

Excess above cap – 15%

Within low-rate cap – 15%
Excess above low rate cap within plan cap – 30%
Excess above plan cap – 45%
60 and over Nil Within plan cap – 15%
Excess above plan cap – 45%

Superannuation death benefits

Beneficiary Tax rate(3)
Taxable – taxed Tax free
Tax dependant Nil if received as lump sum Nil
Non-tax dependant Taxed – maximum of 15% (plus Medicare levy)

Untaxed – maximum of 30% (plus Medicare levy)

Nil

(1) Non-government superannuation payments will typically be ‘taxed’. Constitutionally protected superannuation funds are untaxed
and
not covered in this tax summary.

(2) Low Rate Cap is a lifetime cap – $215,000 in 2020/21; $225,000 in 2021/22.

(3) Rates exclude Medicare Levy.

Superannuation Guarantee

Year Rate Maximum quarterly super contribution base
2021/22 10% $58,920
2022/23 10.5% $60,220

Minimum Account-Based Pension Factors

Age at pension commencement (and 1 July of each year)

Pension factor
(2021/22 and 2022/23)

Under 65 2%
65 – 74 2.5%
75 – 79 3%
80 – 84 3.5%
85 – 89 4.5%
90 – 94 5.5%
95 and over 7%

Capital Gains Tax (CGT) Cap

2021/22 2022/23
CGT cap amount $1,615,000 $1,650,000
Retirement exemption limit(1) $500,000 $500,000

(1) Lifetime limit.

Carry-forward Concessional Contributions – 2022/23

Unused concessional contributions cap amounts from 1 July 2018 can be carried forward to increase the concessional contributions cap. The first year the concessional contributions cap can be increased by the amount of unused cap is 2019/20. Superannuation balance must be less than $500,000 at the end of 30 June in the previous year and unused amounts will expire after 5 years.

Individual Tax

Personal Tax Rates - 2021/22 & 2022/23

Personal Tax Rates 

Taxable income Residents Working Holiday Makers(1)
Tax % on excess Taxable income Tax % on excess
$18,200 Nil 19 Nil Nil 15
$45,000 $5,092 32.5 $45,000 $6,750 32.5
$120,000 $29,467 37 $120,000 $31,125 37
$180,000 $51,667 45 $180,000 $53,325 45

(1) You are a working holiday maker if you have a visa subclass: 417 (Working Holiday), 462 (Work and holiday), 408 (COVID-19 pandemic event) or a bridging visa in limited circumstances.

Personal Tax Rates (Non-Residents)

Non-Residents
Taxable income Tax % on excess
Nil Nil 32.5
$120,000 $39,000 37
$180,000 $61,200 45

Low and Middle Income Tax Offset – 2021/22

Taxable income Offset
$37,000 or less $675
$37,001 to $48,000 $675 plus 7.5% of excess over $37,000 up to a maximum of $1,500
$48,001 to $90,000 $1,500
$90,001 to $126,000 $1,500 minus 3% of the excess above $90,000
$126,001 or more Nil

Home Office Deductions – 2021/22 & 2022/23

Date applicable Method Amount / hour(1)
1 July 2018 onward Fixed Rate 0.52c
1 March 2020 to 30 June 2022 Covid shortcut(1)(2)(3) 0.80c

(1) You must keep records of the number of hours worked from home.

(2) This method covers all work from home expenses including phone, internet, electricity etc. If using this method, no other expenses for working from home can be claimed.

(3) Include “Covid-hourly rate” as the description when completing the tax return.

Medicare Levy – 2021/22

Medicare Levy of 2% applies to resident individuals whose taxable income and reportable fringe benefits exceed the upper limit.

Type of taxpayer Lower limit(1) Upper limit(1)
Individuals $23,365 $29,207
Families(2) $39,402 $49,252
Threshold increase per dependent child/student $3,619 $4,523
Individuals eligible for Senior and Pensioner Tax Offset $36,925 $46,157

(1)  A phase-in of 10 cents per $1 applies above the lower limit.

(2) Applies to families where there are no children and/or students.

Medicare Levy Surcharge and Private Health Insurance Rebate

Type of taxpayer Not affected Tier 1 Tier 2 Tier 3

Income levels – 2021/22 & 2022/23

Singles $90,000 or less $90,001 – $105,000 $105,001 – $140,000 $140,001 or more
Families(1) $180,000 or less $180,001 – $210,000 $210,001 – $280,000 $280,001 or more

Private health insurance rebate from 1 July 2021 to 30 June 2022(2)

Aged under 65 24.608% 16.405% 8.202% 0%
Aged 65 – 69 28.710% 20.507% 12.303% 0%
Aged 70 or over 32.812% 24.608% 16.405% 0%

Medicare Levy Surcharge Rate(3)

All ages 0% 1% 1.25% 1.5%

(1) Family income level threshold is increased by $1,500 for each dependent child after the first.

(2) The government did not change the rebate percentage on 1 April 2022.

(3) Taxpayers with insufficient private health cover may be liable for the Medicare Levy Surcharge.

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