Tax and Social Security Guide: 2011 – 2012
This guide is an initiative of the CPA Australia Retirement Savings Centre of Excellence. Information is current – based on legislation as at 1 July 2011 and updated for social security as at 20 March 2011.

CPA Australia

Tax Rates
Resident personal tax rates 1/7/11 – 30/6/12
Taxable income $ Up to 6,000 6,001 – 37,000 37,001 – 80,000 80,001 – 180,000 Excess over 180,000 Marginal rate Nil 15% 30% 37% 45% Tax payable $ Nil 15c for each $1 over 6,000 4,650 plus 30c for each $1 over 37,000 17,550 plus 37c for each $1 over 80,000 54,550 plus 45c for each $1 over 180,000

Other Tax Rates
Tax Rate Company Superannuation fund: - Complying - Non-complying Insurance and Friendly Society Bonds 30% 15% 45% 30%

Tax rate for Minors – unearned income
Income $0 - $416 $417 - $1,307 Excess over $1,307 • Earned income taxed at (adult) marginal rates Marginal rate Nil 66% 45% on all income

Tax Offsets
Low income tax offset (LITO)
Max. rebate $* Low income earner 1,500 Shade-out threshold $ 30,000 Cut-out threshold $ 67,500

* Reduced by 4c for each $1 of taxable income over $30,000. Tax free threshold effectively $16,000. Not available for minors on unearned income.

Non-resident personal tax rates 1/7/11 – 30/6/12
Taxable income $ Up to 37,000 37,001 – 80,000 80,001 – 180,000 Excess over $180,000 Marginal rate 29% 30% 37% 45% Tax payable $ 29c for each $1 over 10,730 plus 30c for each $1 over 37,000 23,630 plus 37c for each $1 over 80,000 60,630 plus 45c for each $1 over 180,000

Senior Australian Tax Offset (SATO)
Low income aged person Single Couple (each) Max. Rebate level $* 2,230 1,602
Shade-out threshold $

Cut-out threshold $ 48,525 39,496 45,920

30,685 26,680 29,600

Couple (separated due to illness – each) 2,040

* Rebate reduces by 12.5c for each $1 of taxable income above the shade-out