Australian Tax Rates 2024 – 2025

This guide provides important information about the tax rates or relevant thresholds for the 2024-2025 financial year, helping you better understand various tax aspects, including Australian resident tax rates, tax credits, corporate income tax rates, employee benefits tax rates, and Medicare tax rates. Additionally, it includes basic Medicare information and a table of major foreign exchange rates.

For the 2025 financial year, the main tax rates and standard benchmarks for individuals with an annual income below $135,000 have been reduced. The personal income tax rate for Australian residents with an annual income between $18,201 and $45,000 has been lowered from 19% to 16%, a decrease of 3%. The tax rate for annual incomes between $45,001 and $135,000 is 30%, a reduction of 2.5%. The non-resident personal income tax rate for annual income below $120,000 has also been reduced by 2.5%, from 32.5% to 30%.

For the 2025 financial year, the changes to corporate income tax primarily focus on non-profit organizations， Non-profit organizations with income between $417 and $ 762 will be taxed at a rate of 55%, and for income exceeding $763, the tax rate will decrease from 26% to 25%.

Individual tax rates

Australian resident tax brackets and rates 2024-2025

Taxable income	Tax rate%	Tax payable on this income
0 – $18,200	0	Nil
$18,201 – $45,000	16	16c for each $1 over $18,200
$45,001 – $135,000	30	$4,288 plus 30c for each $1 over $45,000
$135,001 – $190,000	37	$31,288 plus 37c for each $1 over $135,000
$190,001 and over	45	$51,638 plus 45c for each $1 over $190,000

Individual tax rates for non-residents 2024-2025

Taxable income	Tax rate%	Tax payable on this income
0 – $120,000	30	30c for each $1
$120,001 – $180,000	37	$40,500 plus 37c for each $1 over $135,000
$180,001 and over	45	$60,850 plus 45c for each $1 over $190,000

2024-2025 Resident minors’ tax rate on eligible taxable income

Taxable income	Tax payable on this income
$0 – $416	Nil
$417 – $1,307	Nil plus 66% of the excess over $416
Over $1,307	45% of the total amount of the income that is not excepted income

2024-2025 Non-Resident minors’ tax rate on eligible taxable income

Taxable income	Tax payable on this income
$0 – $416	30% of the entire amount
$417 – $713	$124.80 plus 66% of the excess over $416
Over $713	45% of the entire amount

For more detailed tax rate information, you can visit the government website: https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents

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Australian resident income tax rates 2023-2024

To provide a more detailed comparison of the differences between individual tax rates for the FY2024 and FY2025 financial years, the detailed individual income tax rates for 2023-2024 are listed below.

Resident income tax rates 2023–2024

Taxable income	Tax 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 – $135,000	32.5	$5,092 plus 32.5c for each $1 over $45,000
$135,001 – $190,000	37	$29,467 plus 37c for each $1 over $120,000
$190,001 and over	45	$51,667 plus 45c for each $1 over $180,000

Individual tax rates for non-residents 2023-2024

Taxable income	Tax rate %	Tax payable on this income
0 – $120,000	32.5	32.5c for each $1
$120,001 – $180,000	37	$39,000 plus 37c for each $1 over $120,000
$180,001 and over	45	$61,200 plus 45c for each $1 over $180,000

2023-2024 Resident minors’ tax rate on eligible taxable income

Taxable income	Tax payable on this income
$0 – $416	Nil
$417 – $1,307	Nil plus 66% of the excess over $416
Over $1,307	45% of the total amount of the income that is not excepted income

2023-2024 Non-Resident minors’ tax rate on eligible taxable income

Taxable income	Tax payable on this income
$0 – $416	32.5% of the entire amount
$417 – $713	$135.20 plus 66% of the excess over $416
Over $713	45% of the entire amount

If you’re still uncertain about the amount of tax return you can receive in the 2024 – 2025 financial year, you can use the tax cut calculator provided by the Australian government to estimate your tax reduction

Tax Offsets

Tax Offset refers to a certain amount that taxpayers can directly subtract from their tax liability when calculating the amount of tax they owe. Including: low income tax offset, Senior Australian and Pensioners Tax Offset.

Tax offsets for individuals

Tax offsets for individuals
2024-2025 Low income tax offset
Taxable income	Tax offsets
$37,500 or less	$700
between $37,501 and $45,000	$700 – (5% of excess over$37,500)
between $45,001 and $66,667	$325 – (1.5% of excess over $45,000)
$66,668 and above	Nil

2024-25 Senior Australian and Pensioners Tax Offset (SAPTO)

Status	Maximum tax offset amount	Shading-out threshold	Cut-out threshold
Single	$2,230	$32,279	$50,119
Each partner of a couple	$ 1,602	$28,974	$41,790
Each partner of an illness separated couple	$2,040	$31,279	$47,599

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Corporate tax rates

Australia’s Corporate Income Tax is a tax levied on the income of companies and other business entities operating within Australia. This tax applies to various business entities, including companies, partnerships, trusts, and other organizations.

2023-24 Corporate entity tax rates	Rate
Private and public companies (base rate entities)	25%
Private and public companies (other)	30%
Public trading trusts (base rate entities)	25%
Public trading trusts (other)	30%
2023-2024Life Insurance companies
Ordinary class		30%
Complying superannuation class		15%
2023-2024 Non-profit companies (base rate entities)
Taxable income: $0–$416		Nil
Taxable income: $417–$762		55%
Taxable income: $763 and above		25%
Non-profit companies (other)
First $416 taxable income		Nil
Taxable income $417 to $915		55%
Taxable income $916 and above		30%

FBT rates and thresholds

FBT is a tax on employee benefits provided by employers

FBT and gross-up rates
FBT year	Rate	Type 1 gross-up rate	Type 2 gross-up rate
2023-2024	47%	2.0802	1.8868
2022-2023	47%	2.0802	1.8868

Car fringe benefits

The statutory fraction is 20%
Taxable value of a fringe benefit of a motor vehicle other than a car (c/km basis)
FBT year ending	0 to 2500cc	Over 2500cc	Motor- cycles
31 March 2025	66c	77c	19c
31 March 2024	62c	73c	18c

Record keeping exemption

2023-2024	$ 9,786
2022-2023	$9,181

FBT – Benchmark interest rate

Financial Year	Rate
2024-2025	8.77%
2023-2024	7.77%

Car parking threshold

2024-2025	$ 10.77
2023-2024	$ 10.40

Division 7A – Benchmark interest rate

2024-2025	8.77%
2023-2024	8.27%

Improvement threshold

Improvement Threshold is primarily used in tax calculations for real estate and other fixed assets

2024-2025	$182,665
2023-2024	$174,465

Cents per km car rates

2024–25	85 Cents
2023–24	85 Cents

Motor vehicles

Motor vehicles	2024-25	2023-2024
Luxury car tax limit	$ 80,567	$ 76,950
Fuel efficient luxury car tax limit	$ 91,387	$ 89,332
Car depreciation limit	$ 69,674	$ 68,108
Maximum input tax credit claim for cars	$ 6,334	$6,192

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Medicare

2023-2024 Medicare levy

Levy is 2% of an individual’s taxable income.

2023-24 Medicare levy for families with dependents

Number of dependents	Family taxable income
Number of dependents	Nil levy payable	Reduced levy shade-in range (10% of excess over nil band)	Normal 2% payable
0	$ 43,846	$ 43,847-$ 54,807	$54,808
1	$ 47,873	$ 47,874-$ 59,841	$ 59,842
2	$ 51,900	$ 51,901-$ 64,875	$ 64,876
3	$ 55,927	$ 55,928-$ 69,908	$ 69,909
4	$ 59,954	$ 59,955-$ 74,942	$ 74,943
5	$ 63,981	$ 63,982-$ 79,976	$ 79,977
6	$ 68,008	$ 68,009-$ 85,010	$ 85,011
Extra Child	$ 4,027		$ 5,034

2024-2025 Medicare levy surcharge

Single	Family	Rate
$97,000 or less	$194,000 or less	0%
$97,001 – $113,000	$194,001 – $226,000	1%
$113,001 – $151,000	$226,001 – $302,000	1.25%
$151,001 or more	$302,001 or more	1.5%

2023-24 Medicare levy reduction threshold

Taxable income	Medicare levy payable
$0 to $26,000	Nil
$26,000 to $32,500	10% of excess over $26,000
$32,500 & above	2% of taxable income

2023-24 Medicare levy threshold: Individuals who qualify for the SAPTO

Taxable income	Medicare levy payable
$0 to $41,089	Nil
$41,089 to $51,361	10% of excess over $51,361
$51,361& above	2% of taxable income