Tax Facts

We thought the following information on various tax issues would be useful to you.
Personal circumstances always vary, so please ensure you contact us for specific advice.

Income Tax

Income tax is levied on taxable income, which is calculated as assessable income less allowable deductions. Gross tax on taxable income is reduced by tax offsets and credits, to arrive at net tax payable or refundable.

Individuals

The Australian Taxation Office (ATO) publishes lists of assessable income, allowable deductions and tax offsets for individuals. Sole traders declare business income in their individual income tax return, they are not required to complete a separate return for their business. Tax on individuals is charged at marginal rates. You can use the tax tables to determine how much you are taxed.

Resident tax rates 2025-26

Taxable income	Tax on this income
$0 – $18,200	$0
$18,201 – $45,000	16c for each $1 over $18,200
$45,001 – $135,000	$4,288 plus 30c for each $1 over $45,000
$135,001 – $190,000	$31,288 plus 37c for each $1 over $135,000
$190,001 and over	$51,638 plus 45c for each $1 over $190,000

The above rates do not include the Medicare levy of 2%.

Foreign resident tax rates 2025-26

Taxable income	Tax on this income
$0 – $135,000	30c for each $1
$135,001 – $190,000	$40,500 plus 37c for each $1 over $135,000
$190,001 and over	$60,850 plus 45c for each $1 over $190,000

MORE: Special rates apply to children and working holiday makers. See the ATO web site for more information on Individual Income Tax Rates.

Rates and Calculators

The Australian Taxation Office (ATO) provides a variety of rate tables, tax calculators, and other tools on many topics, including the following:

Capital gains tax
Fringe benefits tax
Fuel tax credits
Goods and services tax
Income tax, including Medicare levy
PAYG withholding
Superannuation
Residency
Certain expenses

MORE: To access these tools, navigate to the Calculators & Tools section of the ATO web site.

Single Touch Payroll

Single Touch Payroll(STP) is a reporting framework for employers to provide payroll information to the ATO. It is embedded in most payroll software programs and allows for reporting of the following obligations:

Salary and wages, including foreign employment income
Payments under labour mobility programs, labour hire arrangements and CDEP scheme
Termination payments (including ETPs, lump sum payments for unused leave, redundancy, and early retirement amounts)
Paid parental leave and dad and partner pay
Reportable superannuation contributions and reportable fringe benefits can be reported using STP
Salary sacrificed amounts
Superannuation liability
Tax offset amounts
Foreign tax paid
Voluntary agreements

For most employers, the STP report is required at or before the time the payment is made or the date the PAYG withholding is required. Use of STP allows employees to see their year-to-date salary and superannuation data via myGov (when linked to the ATO).

STP data is also shared with Services Australia and other Government agencies.

Superannuation Guarantee

In addition to employees’ salaries and wages, employers are required to pay superannuation contributions on behalf of all eligible employees. This compulsory contribution is called the superannuation guarantee. The definition of employee for this purpose includes certain contractors. The minimum contribution is calculated with reference to each eligible employee’s earnings base (usually their ordinary time earnings) and must be paid within 28 days after the end of each calendar quarter, although it is proposed to bring this forward to the time the employee’s salary is paid. There is no minimum earnings amount, although there is a maximum amount to ensure that excess contributions are not made. Employers must also provide employees with a choice of superannuation fund.

The minimum contribution rate is 11% from 1 July 2023 and will continue to increase by 0.5% each financial year until it reaches 12% from 1 July 2025.

Employers are generally required to pay superannuation contributions for employees if they are:

If an employer fails to make the minimum contributions for a quarter by the due date, the employer is liable for the Superannuation Guarantee Charge (SGC). The SGC comprises the unpaid contributions calculated on a higher earnings base, plus an interest charge (which is credited to the employee’s superannuation account) and an administration fee. The employer cannot claim an income tax deduction for the SGC.

The Australian Taxation Office (ATO) provides the following tools/guidelines to help you understand and meet your obligations:

Superannuation Guarantee Charge (SGC) statement and calculator - calculate the SGC liability and prepare the SGC statement
How to work it out: employee or contractor - determine whether new or existing workers are contractors or employees (for tax and super purposes)
Superannuation guarantee eligibility decision tool - see whether an employer needs to make super contributions for employees
Superannuation guarantee contributions calculator - calculate how much superannuation an employee should be contributing for eligible workers