2010 Individual Income Tax Rates.
The Australian financial year runs from the 1st of July to the 30th June each year, for the year ending in June 2010 the following tax rates apply to an individual residents taxable income.
The taxable income is the balance of assessable income less allowable deductions.
The tax payable is calculated on the taxable income as per the tax rates below. As the taxpayers earnings increase it will pass through the relevant tax brackets.
Some mistakenly think that as you move into a higher tax bracket, all of your earnings are taxed at the higher tax rate. Thankfully this is not the case, only the income above the tax bracket is taxed at that rate.
Using the chart below if your income was $85,000, only $5k would be taxed at 38% not the full $85k.
The income tax rates for the financial year ending 30th June 2010 for and individual who is a resident for income tax purposes.
| Taxable income | Tax on this income |
| $1 – $6,000 | Nil |
| $6,001 – $35,000 | 15c for each $1 over $6,000 |
| $35,001 – $80,000 | $4,530 plus 30c for each $1 over $35,000 |
| $80,001 – $180,000 | $17,850 plus 38c for each $1 over $80,000 |
| $180,001 and over | $55,850 plus 45c for each $1 over $180,000 |
The above rates do not include the Medicare levy of 1.5%, which is subject to income thresholds.
Nor does it include any income tax offsets, these apply to the taxpayers individual circumstances.
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