Taxation Note

Taxation Law Notes 1

Average rate of tax = (total tax paid / taxable income) x 100

Marginal rate of tax = proportion (or percentage) of each extra dollar derived by the taxpayer that is taxed

Tables 2007 / 2008:

Tax of Rate for Australian Resident:

|Taxable Income Cohort |Marginal Rate of Tax (*) |

|$0 - $6,000 |0% |

|$6,000 - $30,000 |$0 + 15% for excess $6,000 |

|$30,000 - $75,000 |$3,600 + 30% for excess $30,000 |

|$75,000 - $150,000 |$17,100 + 40% for excess $75,000 |

|$150,000 and above |$47,100 + 45% for excess $150,000 |

(*) Excludes Medicare Levy and Medicare Levy Surcharge

Medicare Levy:

|Taxable Income |Rate of Medicare Levy |

|$0 - $17,309 |0% |

|$17,309 - $20,363 |10% on the difference between your taxable income and $17,309 |

|$20,363 and over |1.5% of your taxable income |

1% Medicare Levy Surcharge*:

|Individuals |Taxable income plus reportable fringe benefits > $50,000 |

|Families |Taxable income plus reportable fringe benefits > $100,000 |

* Does not applies to taxpayers with acceptable Private...