From 1 July 2016 the 32.5% personal income tax threshold will increase from $80,000 to $87,000, meaning that the average full-time wage earner will not move into the second highest tax bracket in the next three years.  The current and proposed income tax rates (excluding the 2% Medicare Levy) are as follows:

   Current (2015-16)    From 1 July 2016
 $ Rate $ Rate
 18,201  19% 18,201 19%
37,001 32.5% 37,001 32.5%
80,001 37% 87,001 37%
180,001 47% 180,001 47%


The top rate of tax (47%) includes the 2% Temporary Budget Repair Levy which is still scheduled to be removed on 30 June 2017.

The low income thresholds for the Medicare levy and Medicare levy surcharge will increase from the 2015-16 year to take account of movements in the consumer price index (CPI).

The income thresholds for the Medicare levy surcharge and the private health insurance rebate will remain unchanged until 1 July 2021.

GST on Low Value Goods Imported by Consumers

GST will be extended to low value goods imported by consumers from 1 July 2017.

The intent of this measure is that low value goods imported by consumers will face the same tax regime as goods that are sourced domestically.

Overseas suppliers that have an Australian turnover of $75,000 or more will be required to register for, collect and remit GST for low value goods supplied to consumers in Australia, using a vendor registration model.

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