Australian Tax Rate Calculator 2017
Calculate your income tax liability for the 2016-2017 financial year (1 July 2016 – 30 June 2017)
Comprehensive Guide to Australian Tax Rates 2017
The 2016-2017 financial year (1 July 2016 to 30 June 2017) saw 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.
2017 Australian Tax Rates for Residents
The following tax rates applied to Australian residents for the 2016-2017 financial year:
| 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 – $87,000 | $3,572 plus 32.5c for each $1 over $37,000 | 19% – 25.7% |
| $87,001 – $180,000 | $19,822 plus 37c for each $1 over $87,000 | 25.7% – 34.5% |
| $180,001 and over | $54,232 plus 45c for each $1 over $180,000 | 34.5% – 45% |
Tax Rates for Foreign Residents (2017)
Non-residents were subject to different tax rates with no tax-free threshold:
| Taxable Income | Tax on this Income |
|---|---|
| $0 – $87,000 | 32.5c for each $1 |
| $87,001 – $180,000 | $28,275 plus 37c for each $1 over $87,000 |
| $180,001 and over | $62,685 plus 45c for each $1 over $180,000 |
Working Holiday Maker Tax Rates (2017)
From 1 January 2017, working holiday makers (on visa subclasses 417 and 462) were taxed at 15% on income up to $37,000, with ordinary foreign resident rates applying above this threshold.
Medicare Levy 2017
The Medicare levy for most taxpayers was 2% of taxable income in 2017. However:
- Low-income earners may have qualified for a reduction or exemption
- Some individuals were eligible for the 1% “half levy”
- Certain categories (like foreign residents) were exempt
| Income Threshold (Single) | Income Threshold (Family) | Levy Reduction |
|---|---|---|
| ≤ $21,655 | ≤ $36,541 | No levy payable |
| $21,656 – $27,068 | $36,542 – $45,094 | Levy shades in at 10% of excess over threshold |
| > $27,068 | > $45,094 | Full 2% levy applies |
HECS/HELP Repayment Thresholds 2017
Repayments for student loans commenced when income exceeded $55,874 in 2017, with rates increasing progressively:
| Repayment Income | Repayment Rate |
|---|---|
| Below $55,874 | 0% |
| $55,874 – $62,645 | 4% |
| $62,646 – $69,416 | 4.5% |
| $69,417 – $76,187 | 5% |
| $76,188 – $82,958 | 5.5% |
| $82,959 – $89,729 | 6% |
| $89,730 – $96,500 | 6.5% |
| $96,501 – $103,271 | 7% |
| $103,272 – $110,042 | 7.5% |
| $110,043 and above | 8% |
Key Tax Changes in 2017
Several important tax changes took effect during the 2016-2017 financial year:
- Working Holiday Maker Tax: The “backpacker tax” was introduced on 1 January 2017, setting a 15% tax rate for working holiday makers on income up to $37,000.
- Superannuation Changes: The concessional contributions cap was reduced to $25,000 for all individuals regardless of age.
- Small Business Tax Offset: The unincorporated small business tax discount increased from 5% to 8% (capped at $1,000).
- GST on Digital Products: The “Netflix tax” extended GST to digital products and services imported by consumers.
Tax Offsets and Rebates Available in 2017
Several tax offsets were available to reduce tax payable:
- Low Income Tax Offset (LITO): Up to $445 for taxpayers with income up to $37,000, phasing out at $66,667
- Low and Middle Income Tax Offset (LMITO): Not yet introduced (came into effect in 2018-19)
- Senior Australians and Pensioners Tax Offset (SAPTO): Available to eligible seniors
- Private Health Insurance Rebate: Income-tested rebate on private health insurance premiums
- Zone Offset: For residents of remote areas (Zone A: $1,173 + 50% of excess over $20; Zone B: $57)
Tax Deductions Common in 2017
Common work-related deductions claimed in 2017 included:
- Vehicle and travel expenses (using cents per km or logbook methods)
- Clothing, laundry and dry-cleaning expenses
- Home office expenses
- Self-education expenses
- Tools, equipment and other assets
- Union fees and subscriptions
- Mobile phone and internet expenses (work-related portion)
Capital Gains Tax in 2017
The capital gains tax (CGT) rules in 2017 included:
- 50% discount for assets held more than 12 months (for individuals and trusts)
- No discount for foreign residents on assets acquired after 8 May 2012
- Small business CGT concessions available for eligible businesses
- Main residence exemption continued to apply for primary homes
Superannuation Contributions 2017
Key superannuation contribution rules for 2016-2017:
- Concessional contributions cap: $30,000 (under 49), $35,000 (49+) until 30 June 2017, then $25,000 for all from 1 July 2017
- Non-concessional contributions cap: $180,000 (or $540,000 over 3 years using bring-forward rule)
- Super guarantee rate: 9.5%
- Co-contribution matching: Government co-contribution of up to $500 for low-income earners
Common Tax Mistakes to Avoid (2017 Edition)
Taxpayers often made these errors in their 2017 returns:
- Claiming private expenses as work-related (e.g., everyday clothing)
- Not keeping proper receipts or records for deductions
- Incorrectly calculating home office expenses
- Failing to declare all income (including cash jobs and foreign income)
- Claiming the full $300 for work-related expenses without spending it
- Not considering the impact of the Medicare levy surcharge
- Incorrectly applying the small business CGT concessions
- Failing to lodge on time (due date: 31 October 2017 for most individuals)
How to Reduce Your 2017 Tax Bill Legally
Strategies to minimize tax in 2017 included:
- Making concessional super contributions before 30 June
- Prepaying deductible expenses (like income protection insurance)
- Selling loss-making investments to offset capital gains
- Claiming all legitimate work-related deductions
- Considering salary sacrificing arrangements
- Taking advantage of the small business instant asset write-off ($20,000 threshold)
- Reviewing your investment structure (trusts, companies, etc.)
Important ATO Deadlines for 2017
Key dates for the 2016-2017 financial year:
- 30 June 2017: End of financial year
- 14 July 2017: Due date for PAYG payment summaries to be provided to employees
- 28 July 2017: Due date for PAYG withholding payment summary annual report
- 31 October 2017: Lodgment due date for most individual tax returns
- 15 May 2018: Due date for tax returns if lodged through a tax agent (varies)
- 30 June 2018: Last date to amend 2017 tax return (generally)
Important Disclaimer: This calculator and guide provide general information only and do not constitute financial advice. Tax laws can be complex and change frequently. For accurate advice tailored to your specific circumstances, please consult a qualified tax professional or the Australian Taxation Office. The information provided is based on our interpretation of the law as at 30 June 2017 and may not reflect subsequent changes.
Authoritative Resources
For official information about Australian tax rates in 2017, refer to these authoritative sources: