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AU Tax 2021

Australia Tax Tables 2021 - Tax Rates and Thresholds in Australia

This page contains the tax table information used for the calculation of tax and payroll deductions in Australia in 2021. These tax tables are used for the tax and payroll calculators published on iCalculator™ AU, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Australia or would like to add to or suggest amendments to the information herein then please contact us.

Australia Personal Income Tax Tables in 2021

The Income tax rates and personal allowances in Australia are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Australia Tax Calculator 2021.

Australia Residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
0%Income from $ 0.000.00to $ 18,200.00
19%Income from $ 18,200.01 to $ 45,000.00
32.5%Income from $ 45,000.01 to $ 120,000.00
37%Income from $ 120,000.01 to $ 180,000.00
45%Income from $ 180,000.01 and above
Australia Non-residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
32.5%Income from $ 0.000.00to $ 120,000.00
37%Income from $ 120,000.01 to $ 180,000.00
45%Income from $ 180,000.01 and above

Low Income Tax Offset in 2021

You may be eligible for a tax offset in 2021 if you are a low-income earner and you are an Australian resident for income tax purposes. If your taxable income is less than $ 66,667.00, you will get the low income tax offset. The maximum tax offset of $ 700.00 applies if your taxable income is $ 37,000.00 or less. This amount is reduced by $ 1.50 cents for each dollar over $ 37,000.00.

Australia Social Security Rates in 2021

In Australia, social security contributions are an integral part of the employment landscape, ensuring that both employees and employers contribute to various social welfare schemes. These contributions provide support in several areas, including retirement, health, and workplace-related incidents. Below is an overview of the main types of social security contributions in Australia and what they fund.

Australia Social Security in 2021: Rates for Employers and Employees
Social security categoryEmployeeEmployerTotal
Medicare Levy (ML)2%0%2%
Medicare Levy Surcharge (MLS)0%0%0%
Superannuation Guarantee0%10%10%
Australia Social Security in 2021: Earnings Thresholds for Employers and Employees
Social security categoryEmployeeEmployer
Min.Max.Min.Max.
Medicare Levy (ML)n/an/an/an/a
Medicare Levy Surcharge (MLS)n/an/an/an/a
Superannuation Guaranteen/an/an/an/a

1. Superannuation Guarantee (SG)

The Superannuation Guarantee is a mandatory contribution made by employers to their employees' superannuation funds, which is a pension program. This contribution is designed to provide income in retirement for employees.

2. Medicare Levy

The Medicare Levy is paid by employees as part of their tax contributions, typically at the rate of 2% in 2021. It funds Australia's public health care system, Medicare, which provides access to a wide range of health care services at low or no cost.

2. Medicare Levy Surcharge (MLS)

What is the Medicare Levy Surcharge (MLS) in Australia? The Medicare Levy Surcharge (MLS) is an additional tax in Australia designed to encourage individuals and families with higher incomes to take out private hospital insurance, thereby reducing the demand on the public Medicare system. It applies to Australian taxpayers who do not have an appropriate level of private hospital insurance and earn above a certain income threshold. The MLS is calculated at a rate of 1% to 1.5% of taxable income in 2021, depending on income level and family situation [see table below].

MLS Income Thresholds and Rates for 2021 to 2022
ThresholdBase TierTier 1Tier 2Tier 3
Single Threshold$ 90,000.00
or
less
$ 90,000.01
to
$ 105,000.00
$ 105,000.01
to
$ 140,000.00
$ 140,000.01
and above
Family Threshold$ 180,000.00
or
less
$ 180,000.01
to
$ 210,000.00
$ 210,000.01
to
$ 280,000.00
$ 280,000.01
and above
Medicare Levy Surcharge Rate0%1%1.25%1.5%

The family income threshold in 2024 is increased by $ 1,500.00 for each MLS dependent child after the first child. This increase can be calculated using the advanced features of the Australia income tax calculator for 2021.

The MLS is intended to promote the use of private healthcare facilities and alleviate pressure on the public healthcare system. Individuals and families can avoid paying the surcharge by maintaining an appropriate level of private hospital cover throughout the year. The income thresholds and surcharge rates are reviewed annually and are subject to change based on government policy. This system encourages those who can afford private insurance to contribute more significantly to their healthcare costs, ensuring a more sustainable public healthcare system for all Australians.

4. Workers' Compensation Insurance

Employers are required to pay for Workers' Compensation Insurance. This insurance provides cover for employees who are injured or become ill due to their work. It includes payments for medical expenses and lost wages.

5. Paid Parental Leave

While not a direct social security contribution, employers often provide Paid Parental Leave as part of employee benefits. This leave supports new parents financially during their time away from work for childbirth or adoption.

6. Unemployment Benefits

Unemployment benefits, funded through general taxation (to which both employees and employers contribute), provide financial assistance to individuals who are temporarily out of work. It is managed by the Australian government.

Each of these social security contributions plays a vital role in Australia's social welfare system, providing support and stability to the workforce and the broader community.

Australia GST Rates in Australia

GST rates for Australia are reviewed annually, you can use the GST Calculator to calculate GST due in Australia or use the Reverse GST Calculator to calculate the net cost of goods/services after deducting GST.

Australia GST Rates
GST RateGST Description
0%Reduced
10%Standard Rate

Historic Tax Tables supported for Australia

The following tax tables are supported by iCalculator™ AU as part of the suite of free tax tools we provide for Australia.