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
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
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.
Ben Gu is a Chartered accountant, registered tax agent, registered ASIC agent, SPAA specialist advisor and CA SMSF specialist with experience across a wide range of tax and business.
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