Australian Income Tax Rates 2017 Calculator

Calculate your tax liability based on the 2017 Australian tax rates for residents and non-residents

Comprehensive Guide to Australian Income Tax Rates 2017

The 2016-17 financial year (1 July 2016 to 30 June 2017) brought several important considerations for Australian taxpayers. This guide provides a detailed breakdown of the income tax rates, thresholds, and key information you need to understand your tax obligations for this period.

2017 Australian Tax Rates for Residents

The tax rates for Australian residents in 2016-17 were structured progressively, meaning higher income earners pay a higher percentage of tax. Here’s the complete breakdown:

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% – 32.5%
$87,001 – $180,000	$19,822 plus 37c for each $1 over $87,000	32.5% – 37%
$180,001 and over	$54,232 plus 45c for each $1 over $180,000	37% – 45%

2017 Tax Rates for Non-Residents

Non-residents are taxed differently in Australia. The 2016-17 tax rates for non-residents were as follows:

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 (2016-17)

Special tax rates applied to working holiday makers (WHM) on their first $37,000 of taxable income:

• 0% – $0 to $18,200
• 15% – $18,201 to $37,000
• Standard foreign resident rates apply above $37,000

Medicare Levy 2016-17

The Medicare levy is an additional tax that helps fund Australia’s public health system. For most taxpayers in 2016-17:

• Standard rate: 2% of taxable income
• Reduced rates (1% or 1.5%) for low-income earners
• Exemptions available for certain individuals

The Medicare levy surcharge (an additional 1-1.5%) may apply to high-income earners without private hospital cover.

Low Income Tax Offset (LITO) 2016-17

The Low Income Tax Offset reduced the tax payable for low-income earners:

• Maximum offset: $445
• Income threshold: $37,000
• Phase-out rate: 1.5 cents per dollar over $37,000
• Cut-off: $66,667

HECS/HELP Repayment Thresholds 2016-17

If you had a HECS/HELP debt, repayments were calculated based on your income:

Repayment Income	Repayment Rate
Below $54,869	0%
$54,870 – $60,422	4%
$60,423 – $66,575	4.5%
$66,576 – $73,376	5%
$73,377 – $80,859	5.5%
$80,860 – $89,103	6%
$89,104 – $98,203	6.5%
$98,204 – $108,303	7%
$108,304 and above	8%

Key Tax Changes from Previous Years

The 2016-17 financial year saw several important changes:

1. Working Holiday Maker Tax: New tax rates introduced for working holiday makers (15% on first $37,000)
2. Small Business Tax Offset: Increased to 8% (up from 5%) for unincorporated small businesses
3. Superannuation Changes: Concessional contributions cap reduced to $25,000
4. Diverted Profits Tax: New 40% tax on multinational companies shifting profits offshore

How to Reduce Your Taxable Income

There were several legitimate ways to reduce your taxable income in 2016-17:

• Work-related expenses: Claim deductions for expenses directly related to earning your income
• Self-education expenses: Claim costs for courses that maintain or improve your current work skills
• Charitable donations: Donations to registered charities over $2 are tax-deductible
• Income protection insurance: Premiums are tax-deductible
• Superannuation contributions: Salary sacrifice or personal deductible contributions

Common Tax Mistakes to Avoid

Many taxpayers make these common errors that can lead to ATO scrutiny:

1. Claiming personal expenses as work-related
2. Not keeping proper receipts and records
3. Incorrectly claiming home office expenses
4. Failing to declare all income (including cash jobs)
5. Over-claiming car expenses
6. Claiming for expenses you didn’t actually incur

Tax Planning Strategies for 2016-17

Effective tax planning could help minimize your tax liability:

• Pre-pay expenses: Bring forward deductible expenses to the current financial year
• Delay income: If possible, defer income to the next financial year
• Super contributions: Make additional concessional contributions before 30 June
• Asset purchases: Consider buying business assets before year-end to claim depreciation
• Capital gains: Time the sale of assets to manage capital gains tax

Where to Get Help with Your Tax

If you need assistance with your 2016-17 tax return, consider these options:

• Registered Tax Agent: Can provide professional advice and lodgment services
• ATO Website: Offers comprehensive guides and tools (ato.gov.au)
• Tax Help Program: Free service for low-income earners (run by ATO-trained volunteers)
• Accounting Software: Programs like MYOB or Xero can help track deductions

Frequently Asked Questions About 2017 Australian Tax

When was the 2016-17 tax return due?

The due date for lodging your 2016-17 tax return was 31 October 2017 if you were lodging yourself. If you used a registered tax agent, you typically had until May 2018 or later, depending on your agent’s lodgment program.

What was the tax-free threshold in 2016-17?

The tax-free threshold for Australian residents in 2016-17 was $18,200. This means you didn’t pay any income tax on the first $18,200 you earned. Non-residents didn’t receive this tax-free threshold.

How was the 2% budget repair levy applied in 2016-17?

The temporary budget repair levy (also called the “debt tax”) applied an additional 2% tax on taxable incomes over $180,000. This levy was in effect from 1 July 2014 to 30 June 2017, so 2016-17 was its final year.

What were the small business tax concessions in 2016-17?

Small businesses (with turnover less than $10 million) could access several concessions:

• Lower company tax rate of 27.5% (for companies with turnover under $10 million)
• Small business income tax offset (up to $1,000)
• Immediate deductibility for assets costing less than $20,000
• Simplified depreciation rules
• Simpler BAS reporting options

How did the ATO verify tax returns in 2016-17?

The ATO used sophisticated data-matching technology to verify tax returns. They cross-checked information from:

• Employers (PAYG payment summaries)
• Banks and financial institutions (interest income)
• Share registries (dividend income)
• Property transactions (capital gains)
• Overseas tax authorities (foreign income)
• Cryptocurrency exchanges (capital gains from crypto)

They also focused on specific areas like work-related expenses, rental property deductions, and capital gains from property and shares.

Authoritative Resources

For official information about 2016-17 Australian tax rates, consult these authoritative sources:

• ATO Individual Income Tax Rates 2016-17 – Official tax rates from the Australian Taxation Office
• Treasury 2016-17 Budget Overview – Government budget papers detailing tax changes
• ATO Medicare Levy Information – Details about Medicare levy rates and thresholds