Tax rates 2011-12. The following rates for 2011-12 apply from 1 July 2011.

The above rates do not include the Medicare levy of 1.5% (read Guide to Medicare levy for more information).

 

---

Foreign residents are not required to pay the Medicare levy. Permanent residents will be able to claim an income tax deduction for accommodation expenses they can substantiate and for food expenses beyond a statutory amount.Temporary residents who maintain a home in Australia for their own use and who are required to live away from that home to perform the duties of their employment will be able to claim an income tax deduction for their actual expenses. Allowances for other temporary residents will be taxed like other forms of income under the income tax system.

Access to the LAFHA tax exemption for temporary residents will be limited to those who maintain a residence for their own use in Australia, which they are living away from for work purposes, such as "fly-in fly-out" workers.Individuals will be required to substantiate their actual expenditure on accommodation and food beyond a statutory amount.

Permanent residents will not be affected by these changes, unless they are receiving LAFHA in excess of their actual expenses. The Government says the changes will not prevent temporary residents who are "fly-in fly-out" workers in Australia from accessing the tax concession, and will not affect employees who receive allowances for having to travel from their usual place of work for short periods.

Employers who provide other LAFH benefits will continue to be exempt from FBT on those benefits provided to permanent residents and to temporary residents maintaining a home in Australia which they are living away from for their work.

Employers who provide direct LAFH benefits to other temporary residents will be liable for FBT on those benefits.

The above rates do not include the Flood levy (read Flood levy information for individuals for more information).

Tax offsets reduce the tax payable. Tax offsets based on taxable income levels apply to a range of circumstances. For more information, read Guide to tax offsets Foreign residents If you are a foreign resident for the full year, the following rates apply: Tax rates 2011-12 The following rates for 2011-12 apply from 1 July 2011 The above rates do not include the Flood levy (read Flood levy information for individuals for more information). Foreign residents are not required to pay the Medicare levy. Tax rates 2010-11

 

Taxable income	Tax on this income
0 - $37,000	29c for each $1
$37,001 - $80,000	$10,730 plus 30c for each $1 over $37,000
$80,001 - $180,000	$23,630 plus 37c for each $1 over $80,000
$180,001 and over	$60,630 plus 45c for each $1 over $180,000

 

 Foreign residents are not required to pay the Medicare levy.

Permanent residents will be able to claim an income tax deduction for accommodation expenses they can substantiate and for food expenses beyond a statutory amount.

Temporary residents who maintain a home in Australia for their own use and who are required to live away from that home to perform the duties of their employment will be able to claim an income tax deduction for their actual expenses. Allowances for other temporary residents will be taxed like other forms of income under the income tax system.

• Access to the LAFHA tax exemption for temporary residents will be limited to those who maintain a residence for their own use in Australia, which they are living away from for work purposes, such as "fly-in fly-out" workers.
• Individuals will be required to substantiate their actual expenditure on accommodation and food beyond a statutory amount.
• Permanent residents will not be affected by these changes, unless they are receiving LAFHA in excess of their actual expenses. The Government says the changes will not prevent temporary residents who are "fly-in fly-out" workers in Australia from accessing the tax concession, and will not affect employees who receive allowances for having to travel from their usual place of work for short periods.
• Employers who provide other LAFH benefits will continue to be exempt from FBT on those benefits provided to permanent residents and to temporary residents maintaining a home in Australia which they are living away from for their work.
• Employers who provide direct LAFH benefits to other temporary residents will be liable for FBT on those benefits.

The above rates do not include the Flood levy (read Flood levy information for individuals for more information).

Tax rates 2010-11 

 

Taxable income	Tax on this income
0 - $37,000	29c for each $1
$37,001 - $80,000	$10,730 plus 30c for each $1 over $37,000
$80,001 - $180,000	$23,630 plus 37c for each $1 over $80,000
$180,001 and over	$60,630 plus 45c for each $1 over $180,000

The taxation treatment of LAFHA will return to the income tax system as it was prior to the introduction of the FBT law in 1986. Any allowance paid by an employer to an employee as compensation for being required to live away from home will be included in the assessable income of the employee. The FBT laws will also be amended and LAFHA will no longer be treated as a fringe benefit.