Individual Tax Returns
The 2014 financial year starts on 1 July 2013 and ends on 30 June 2014. The tax free thresholds and brackets for 2013-14 are unchanged from the previous tax year.
Tax rates 2013-14
In 2013-14 the Medicare Levy is applied on a progressive basis at the additional rate of 1.5%.
If eligible private health insurance cover is not maintained the Medicare Levy Surcharge adds a further levy of up to 1.5% depending on income.
Subject to the minimum income thresholds, the basic Medicare Levy is calculated as a percentage of taxable income, and applies to resident Australian taxpayers.
The full basic levy is calculated at 1.5% until 30 June 2014.
From 1 July 2014 the full basic levy is 2.0%
The Medicare Levy Surcharge (”MLS“) – operates in addition to the basic Medicare levy if sufficient private patient hospital insurance cover is not maintained and ranges from 1% to 1.5% based on an income test.
There are separate income thresholds for the medicare levy for individuals and families as set out below. Once the minimum income threshold is reached, the levy is payable on income unless a reduction or exemption is applicable.
The levy formulae operate to ensure that there is no Levy payable if income is not high enough to pay income tax. Pensioners below Age Pension age do not pay the Medicare levy when they have no tax to pay.
Tax rates 2014-15
Non-residents do not pay the Medicare Levy.
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