In addition to the announcements in the 2011-12 Federal Budget which take effect from 1 July 2012, a number of other legislative changes came into effect during the 2011-12 financial year.

Resident tax rates for individuals

The tax free threshold has been increased to $18,200 and other thresholds have been re-aligned as shown below:

Taxable income  Tax payable 
$0-18,200  Nil 
$18,201 to 37,000  Nil +19% of excess over $18,200 
$37,001 to $80,000  $3,572 + 32.5% of excess over $37,000 
$80,001 to $180,000  $17,547 + 37% of excess over $80,000 
$180,001+  $54,547 + 45% of excess over $180,000 

 

Increase in Superannuation Guarantee

Over the next six financial years the Superannuation Guarantee will increase from 9% to 12%, commencing from 1 July 2013 as shown below:

Year  Rate 
2013-14  9.25% 
2014-15  9.5% 
2015-16  10% 
2016-17  10.5% 
2017-18  11% 
2018-19 11.5%
2019-20 12%

Low income super contribution

The government will provide a new super contribution of up to $500 dollars annually for eligible low-income earners from the 2012-13 income year. The payment will be 15% of the eligible concessional contributions (including employer contributions) made by or on behalf of an individual with an adjusted taxable income of up to $37,000 (not indexed). To qualify, an individual must be an Australian tax resident and at least 10% of their income must be from employment or business sources. The ATO will determine eligibility based on an individual’s tax return