2015-16 Tax Rates Calculator
Calculate your income tax liability for the 2015-16 financial year (1 July 2015 – 30 June 2016)
Your 2015-16 Tax Calculation
Comprehensive Guide to 2015-16 Australian Tax Rates
The 2015-16 financial year (1 July 2015 to 30 June 2016) introduced several important changes to Australia’s tax system. This guide provides a detailed breakdown of the tax rates, thresholds, and key considerations for individuals during this period.
Key Features of the 2015-16 Tax Year
- 2% Temporary Budget Repair Levy continued for high-income earners (income over $180,000)
- Medicare levy remained at 2% for most taxpayers
- Changes to the private health insurance rebate tiers
- Adjustments to HECS/HELP repayment thresholds
- Small business tax concessions introduced
2015-16 Income Tax Rates for Residents
| Taxable Income | Tax on this Income | Effective Tax Rate |
|---|---|---|
| $0 – $18,200 | Nil | 0% |
| $18,201 – $37,000 | 19c for each $1 over $18,200 | 0% – 19% |
| $37,001 – $80,000 | $3,572 plus 32.5c for each $1 over $37,000 | 19% – 24.5% |
| $80,001 – $180,000 | $17,547 plus 37c for each $1 over $80,000 | 24.5% – 32.3% |
| $180,001 and over | $54,547 plus 45c for each $1 over $180,000 (includes 2% Temporary Budget Repair Levy) |
32.3% – 47% |
Tax Rates for Non-Residents (2015-16)
| Taxable Income | Tax on this Income |
|---|---|
| $0 – $80,000 | 32.5c for each $1 |
| $80,001 – $180,000 | $26,000 plus 37c for each $1 over $80,000 |
| $180,001 and over | $63,000 plus 45c for each $1 over $180,000 |
Medicare Levy 2015-16
The Medicare levy for most taxpayers remained at 2% of taxable income in 2015-16. However, there were important thresholds and exemptions:
- Low-income thresholds:
- Singles: $20,896 (phased in up to $26,120)
- Families: $35,261 (phased in up to $44,076) plus $3,238 for each dependent
- Pensioners below Age Pension age: $33,044
- Half Medicare levy (1%) for singles with income between $20,896-$26,120 and families between $35,261-$44,076
- Full exemption for:
- Blind pensioners
- Recipients of sickness allowance
- Certain veterans and their dependents
- Foreign residents
HECS/HELP Repayment Thresholds 2015-16
The repayment thresholds for HECS/HELP debts increased slightly in 2015-16:
| Repayment Income | Repayment Rate |
|---|---|
| Below $54,126 | 0% |
| $54,126 – $60,564 | 4% |
| $60,565 – $67,002 | 4.5% |
| $67,003 – $73,441 | 5% |
| $73,442 – $79,879 | 5.5% |
| $79,880 – $86,317 | 6% |
| $86,318 – $92,756 | 6.5% |
| $92,757 – $99,194 | 7% |
| $99,195 – $105,632 | 7.5% |
| $105,633 and above | 8% |
Private Health Insurance Rebate 2015-16
The private health insurance rebate was income-tested with three tiers in 2015-16:
| Income Tier | Single (Income) | Family (Income) | Rebate % (Under 65) | Rebate % (65-69) | Rebate % (70+) |
|---|---|---|---|---|---|
| Tier 1 | ≤ $90,000 | ≤ $180,000 | 25.934% | 29.43% | 32.926% |
| Tier 2 | $90,001 – $105,000 | $180,001 – $210,000 | 17.289% | 20.786% | 24.283% |
| Tier 3 | $105,001 – $140,000 | $210,001 – $280,000 | 8.645% | 12.142% | 15.639% |
| No Rebate | > $140,000 | > $280,000 | 0% | 0% | 0% |
Tax Offsets and Rebates Available in 2015-16
- Low Income Tax Offset (LITO):
- Maximum offset of $445 for incomes up to $37,000
- Phased out at 1.5 cents per dollar between $37,000 and $66,667
- Senior Australians and Pensioners Tax Offset (SAPTO):
- Maximum offset $2,230 for singles, $1,602 each for couples
- Income thresholds: $32,279 (single), $28,974 each for couples
- Zone Tax Offset:
- Zone A: $338 + 50% of excess over $20
- Zone B: $57 + 20% of excess over $20
- Special areas: $1,173
- Dependent Spouse Tax Offset:
- Maximum $2,467 (phased out for spouse income over $282)
- Reduced by $1 for every $4 of dependent spouse income over $282
Important Changes from Previous Years
The 2015-16 tax year saw several notable changes from 2014-15:
- Temporary Budget Repair Levy: Continued for the second year, adding 2% to the top marginal tax rate for incomes over $180,000
- HECS/HELP thresholds: Increased by 2.3% from the previous year, reflecting CPI adjustments
- Medicare levy low-income thresholds: Increased slightly to account for inflation
- Small business concessions: New immediate deductions for assets costing less than $20,000 (up from $1,000)
- Fringe Benefits Tax: Rate increased to 49% (from 47%) to align with the top marginal tax rate including levies
Tax Planning Strategies for 2015-16
Taxpayers could employ several legitimate strategies to optimize their tax position in 2015-16:
- Income Splitting: Distributing income among family members where possible to utilize lower tax thresholds
- Superannuation Contributions: Taking advantage of the $30,000 concessional contributions cap ($35,000 for those aged 49+)
- Pre-paying Deductions: Bringing forward deductible expenses like work-related items or investment property expenses
- Capital Gains Timing: Managing the realization of capital gains to utilize the 50% CGT discount where possible
- Small Business Concessions: Utilizing the increased instant asset write-off threshold of $20,000
- Franking Credits: Investing in Australian shares to take advantage of imputation credits
- Private Health Insurance: Reviewing coverage to avoid the Medicare Levy Surcharge (1-1.5% for high-income earners without hospital cover)
Common Mistakes to Avoid
Many taxpayers made errors in their 2015-16 returns that could trigger ATO scrutiny:
- Overclaiming work-related expenses: The ATO particularly focused on home office, travel, and self-education claims
- Incorrect rental property deductions: Claiming immediate deductions for capital items or not apportioning expenses correctly
- Failing to declare all income: Including cash payments, foreign income, and capital gains
- Incorrect HECS/HELP reporting: Not updating study and training loan accounts properly
- Private health insurance errors: Not claiming the correct rebate amount based on income tier
- Superannuation mistakes: Exceeding contribution caps or incorrect reporting of contributions
- Not keeping proper records: The ATO requires receipts for all claims over $300 (except for certain work-related expenses)
How the ATO Targeted Compliance in 2015-16
The ATO focused on several key areas of non-compliance during the 2015-16 financial year:
- Work-related expenses: Particularly claims for:
- Home office expenses
- Travel between home and work
- Self-education expenses
- Clothing and laundry expenses
- Rental properties: Ensuring:
- Correct apportionment of expenses
- Proper classification of repairs vs improvements
- Accurate reporting of rental income
- Capital gains tax: Focus on:
- Property sales (especially investment properties)
- Cryptocurrency transactions (emerging area)
- Share portfolio sales
- High-wealth individuals: Increased scrutiny of:
- Trust distributions
- International income
- Related-party transactions
- Small businesses: Ensuring proper:
- Reporting of cash transactions
- Claiming of deductions
- PAYG withholding compliance
Comparing 2015-16 with Previous and Subsequent Years
| Feature | 2014-15 | 2015-16 | 2016-17 |
|---|---|---|---|
| Top marginal rate (including levy) | 47% (45% + 2% levy) | 47% (45% + 2% levy) | 47% (45% + 2% levy) |
| Tax-free threshold | $18,200 | $18,200 | $18,200 |
| 32.5% threshold starts | $37,001 | $37,001 | $37,001 |
| 37% threshold starts | $80,001 | $80,001 | $80,001 |
| 45% threshold starts | $180,001 | $180,001 | $180,001 |
| Medicare levy | 2% | 2% | 2% |
| HECS repayment threshold | $53,345 | $54,126 | $54,869 |
| Small business instant asset write-off | $1,000 | $20,000 | $20,000 |
| Super guarantee rate | 9.5% | 9.5% | 9.5% |
| Concessional super cap | $30,000 ($35,000 for 49+) | $30,000 ($35,000 for 49+) | $30,000 ($35,000 for 49+) |
Frequently Asked Questions About 2015-16 Tax
1. Was the 2% Budget Repair Levy still in effect in 2015-16?
Yes, the Temporary Budget Repair Levy continued to apply in 2015-16. It added 2% to the top marginal tax rate for taxable incomes over $180,000, making the effective top rate 47% (45% + 2% levy).
2. What were the key dates for the 2015-16 tax year?
The 2015-16 financial year ran from 1 July 2015 to 30 June 2016. Tax returns were due by 31 October 2016 for most individuals, though tax agents could negotiate later lodgment dates.
3. How did the small business instant asset write-off work in 2015-16?
In 2015-16, small businesses (with turnover under $2 million) could immediately deduct the full cost of assets costing less than $20,000 (up from $1,000 in previous years). This applied to each asset purchased, allowing businesses to claim multiple deductions.
4. What were the capital gains tax rules in 2015-16?
The CGT rules in 2015-16 included:
- 50% discount for assets held longer than 12 months
- No discount for foreign residents on assets acquired after 8 May 2012
- Special rules for small business CGT concessions
- Main residence exemption continued to apply for primary homes
5. How was foreign income taxed in 2015-16?
Australian residents were taxed on worldwide income in 2015-16. Foreign residents were only taxed on Australian-sourced income at non-resident rates. Foreign income tax offsets were available to avoid double taxation in some cases.
6. What were the superannuation contribution rules?
In 2015-16:
- Concessional (before-tax) contributions cap: $30,000 ($35,000 for those aged 49+)
- Non-concessional (after-tax) contributions cap: $180,000 per year or $540,000 over 3 years using bring-forward rule
- Super guarantee rate: 9.5%
- Co-contribution matching: Government contributed up to $500 for eligible low-income earners
Important Disclaimer: This calculator and guide provide general information only and do not constitute financial advice. Tax laws are complex and change frequently. For accurate advice tailored to your specific circumstances, please consult a registered tax agent or the Australian Taxation Office. The calculator results are estimates based on the information provided and the 2015-16 tax rates. Actual tax liabilities may differ based on your complete financial situation.
Authoritative Resources
For official information about 2015-16 tax rates and rules, consult these authoritative sources: