Australian Income Tax Calculator 2019
Calculate your 2019 tax liability with official ATO rates. Includes Medicare levy and tax offsets.
Comprehensive Guide to Australian Income Tax Rates 2019
The 2019 financial year (1 July 2018 – 30 June 2019) introduced several important changes to Australia’s income tax system. This guide provides a detailed breakdown of the tax rates, thresholds, offsets, and levies that applied during this period, helping you understand how your tax was calculated.
Key Features of the 2019 Tax System
- Progressive tax rates with five income brackets for residents
- Different tax scales for foreign residents and working holiday makers
- Medicare levy of 2% (with reductions or exemptions available)
- Low and Middle Income Tax Offset (LMITO) introduced
- Changes to the Low Income Tax Offset (LITO)
- HELP/SSL repayment thresholds adjusted
2019 Tax Rates for Australian 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 – $90,000 | $3,572 plus 32.5c for each $1 over $37,000 | 19-32.5% |
| $90,001 – $180,000 | $20,797 plus 37c for each $1 over $90,000 | 32.5-37% |
| $180,001 and over | $54,097 plus 45c for each $1 over $180,000 | 37-45% |
Tax Offsets Available in 2019
Tax offsets (also called rebates) directly reduce the amount of tax you pay. The two main offsets in 2019 were:
-
Low Income Tax Offset (LITO):
- Maximum offset of $445 for incomes up to $37,000
- Gradually reduced for incomes between $37,001 and $66,667
- Completely phases out at $66,668
-
Low and Middle Income Tax Offset (LMITO):
- Introduced in the 2018-19 budget as temporary relief
- Maximum offset of $530 for incomes between $48,000 and $90,000
- Base amount of $200 for incomes up to $37,000
- Phases out completely at $125,333
Medicare Levy in 2019
The Medicare levy is calculated as 2% of your taxable income, with some important considerations:
- Standard rate: 2% of taxable income
- Reduced rate: 1% for individuals and families with income below certain thresholds
- Exemptions: Available for:
- Low-income earners (singles earning ≤$22,398, families ≤$37,794)
- Pensioners and seniors meeting certain criteria
- Certain visa holders and non-residents
- Medicare Levy Surcharge: Additional 1-1.5% for high-income earners without private hospital cover
Comparison: 2019 vs 2018 Tax Rates
| Income Bracket | 2018 Tax Rate | 2019 Tax Rate | Change |
|---|---|---|---|
| $0 – $18,200 | 0% | 0% | No change |
| $18,201 – $37,000 | 19% | 19% | No change |
| $37,001 – $87,000 | 32.5% | 32.5% | No change |
| $87,001 – $180,000 | 37% | 37% | Threshold increased from $87,000 to $90,000 |
| $180,001+ | 45% | 45% | No change |
Special Tax Rates for Non-Residents and Working Holiday Makers
Different tax scales apply to non-residents and working holiday makers:
Foreign Residents (2019 Rates)
- $0 – $90,000: 32.5%
- $90,001 – $180,000: $29,250 plus 37c for each $1 over $90,000
- $180,001 and over: $62,550 plus 45c for each $1 over $180,000
Working Holiday Makers (Backpacker Tax)
- 0 – $37,000: 15%
- $37,001 – $90,000: $5,550 plus 32.5c for each $1 over $37,000
- $90,001 – $180,000: $24,072 plus 37c for each $1 over $90,000
- $180,001 and over: $56,572 plus 45c for each $1 over $180,000
HELP/SSL Repayment Thresholds 2019
If you had a HECS-HELP, VET Student Loan, or other study and training support loan, repayment thresholds for 2019 were:
| Repayment Income | Repayment Rate |
|---|---|
| Below $51,957 | 0% |
| $51,957 – $57,721 | 2% |
| $57,722 – $63,485 | 3% |
| $63,486 – $69,248 | 4% |
| $69,249 – $75,011 | 4.5% |
| $75,012 – $80,774 | 5% |
| $80,775 – $86,537 | 5.5% |
| $86,538 – $92,300 | 6% |
| $92,301 – $98,062 | 6.5% |
| $98,063 – $103,825 | 7% |
| $103,826 – $109,588 | 7.5% |
| $109,589 and above | 8% |
Tax Planning Strategies for 2019
While you can’t change the past, understanding these strategies can help with future tax planning:
-
Salary Sacrificing:
Contributing to superannuation through salary sacrifice could reduce your taxable income. The concessional contributions cap was $25,000 in 2019.
-
Deductions:
Claim all legitimate work-related expenses, including:
- Home office expenses (if working from home)
- Vehicle and travel expenses
- Self-education expenses
- Tools and equipment
- Union fees and professional subscriptions
-
Prepay Expenses:
If you expected higher income in the next financial year, prepaying deductible expenses before 30 June could be beneficial.
-
Private Health Insurance:
Having appropriate private hospital cover could help avoid the Medicare Levy Surcharge if your income exceeded $90,000 (singles) or $180,000 (families).
-
Investment Property Depreciation:
If you owned an investment property, ensuring you claimed maximum depreciation deductions could significantly reduce taxable income.
Common Tax Mistakes to Avoid
Many taxpayers make these common errors when lodging their 2019 returns:
- Incorrectly claiming work-related expenses: The ATO closely scrutinizes claims for home office, laundry, and travel expenses. You must have spent the money yourself, it must be related to your job, and you need records to prove it.
- Forgetting to declare all income: This includes income from side gigs, freelance work, bank interest, dividends, and capital gains. The ATO receives data from many sources and can identify undeclared income.
- Claiming personal expenses as work-related: Expenses like regular clothes (even if worn to work), childcare, and travel between home and work are generally not deductible.
- Not keeping proper records: You need to keep receipts and records for 5 years from the date you lodge your tax return.
- Incorrectly calculating capital gains: If you sold assets like property or shares, you need to calculate the capital gain or loss correctly, considering factors like ownership period and any capital improvements.
- Missing out on offsets: Many taxpayers forget to claim offsets they’re entitled to, like the Low Income Tax Offset or the Seniors and Pensioners Tax Offset.
Frequently Asked Questions About 2019 Tax
What was the tax-free threshold in 2019?
The tax-free threshold for Australian residents in 2019 was $18,200. This means you didn’t pay tax on the first $18,200 of your income.
How was the Low and Middle Income Tax Offset (LMITO) different from LITO?
The LMITO was a temporary offset introduced in the 2018-19 budget to provide additional tax relief. Unlike LITO which only benefited low-income earners, LMITO provided benefits to middle-income earners as well, with a maximum offset of $530 for incomes between $48,000 and $90,000.
Did I have to pay the Medicare levy if I had private health insurance?
Yes, private health insurance doesn’t exempt you from the Medicare levy. However, having appropriate private hospital cover could help you avoid the additional Medicare Levy Surcharge if your income exceeded certain thresholds ($90,000 for singles, $180,000 for families in 2019).
How were capital gains taxed in 2019?
Capital gains in 2019 were generally taxed at your marginal tax rate. However, if you held the asset for more than 12 months, you were eligible for a 50% discount on the capital gain (for individuals and trusts). The discounted amount was then added to your taxable income.
What was the superannuation guarantee rate in 2019?
The superannuation guarantee rate in 2019 was 9.5% of your ordinary time earnings. This was the minimum percentage that employers were required to contribute to your super fund.
Historical Context: How 2019 Tax Rates Compared to Previous Years
The 2019 tax year was part of a multi-year personal income tax plan announced in the 2018-19 Federal Budget. This plan aimed to provide tax relief to low and middle-income earners and address bracket creep. Key historical comparisons:
- 2017-18: The 37% tax bracket started at $87,000 (compared to $90,000 in 2019)
- 2016-17: The temporary budget repair levy (2% additional tax for incomes over $180,000) was still in place
- 2015-16: The 32.5% tax bracket started at $80,000 (compared to $37,000 in 2019)
- 2012-13: The tax-free threshold was only $18,200 (same as 2019, but introduced in 2012-13)
The 2019 tax year represented a period of stability in Australia’s tax system, with the main changes being the introduction of the LMITO and slight adjustments to tax brackets. The government’s long-term tax plan aimed to eventually simplify the tax system by reducing the number of tax brackets from five to four by 2024-25.
Impact of Tax Changes on Different Income Levels
The 2019 tax changes had varying impacts depending on income level:
Low Income Earners ($37,000 or less)
- Benefited from both LITO and LMITO
- Effective tax rate could be reduced to near 0% for incomes below $21,885
- Medicare levy exemptions available for very low incomes
Middle Income Earners ($37,001 – $90,000)
- Received the full $530 LMITO benefit
- 32.5% tax rate applied to most of their income
- Could benefit from salary sacrificing to super
High Income Earners ($90,001 – $180,000)
- 37% tax rate applied to income over $90,000
- LMITO began phasing out at $90,000
- Potential Medicare Levy Surcharge if no private health insurance
Very High Income Earners ($180,001+)
- 45% tax rate on income over $180,000
- No LMITO benefit
- Potential for Division 293 tax (additional 15% on concessional super contributions)
How to Use This Calculator Effectively
To get the most accurate result from this 2019 tax calculator:
- Enter your exact taxable income: This is your total income minus any allowable deductions. If you’re not sure, refer to your payment summary or income statement.
- Select the correct residency status: Your tax rates differ significantly based on whether you were an Australian resident, foreign resident, or working holiday maker.
- Choose the right Medicare levy option: If you qualified for a reduction or exemption, select the appropriate option to get an accurate calculation.
- Include HELP/SSL debt if applicable: If you had a study loan, entering the debt amount will show how much you needed to repay based on your income.
- Consider private health insurance: While it doesn’t affect your tax calculation directly, it can help avoid the Medicare Levy Surcharge for high-income earners.
- Review the results carefully: The calculator shows your tax payable, but also important metrics like your average and marginal tax rates, which help with financial planning.
Remember that this calculator provides an estimate based on the information you enter. For a precise calculation, you should consult with a registered tax agent or use the ATO’s official calculators.
What Changed in 2020?
While this calculator focuses on 2019 tax rates, it’s worth noting some key changes that occurred in the 2020 financial year:
- The Low and Middle Income Tax Offset (LMITO) was increased, with the maximum offset rising to $1,080
- The 19% tax bracket upper threshold increased from $37,000 to $45,000
- The 32.5% tax bracket upper threshold increased from $90,000 to $120,000
- HELP/SSL repayment thresholds were adjusted slightly upward
These changes generally provided additional tax relief, particularly for low and middle-income earners.
Final Thoughts on 2019 Tax
The 2019 Australian tax system maintained the progressive structure designed to ensure higher income earners pay a larger share of tax. The introduction of the LMITO provided temporary relief for low and middle-income earners, while the existing LITO continued to support those on the lowest incomes.
Understanding how these rates and offsets interact is crucial for effective tax planning. Whether you’re reviewing a past return or planning for future years, being aware of the thresholds and available offsets can help you legally minimize your tax liability.
For the most accurate tax calculation, always refer to official ATO resources or consult with a qualified tax professional, especially if you have complex financial arrangements, multiple income streams, or significant deductions to claim.