Individual Tax Return

Definition of 'Income Tax'

A tax that governments impose on financial income generated by all entities within their jurisdiction. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public. 

What is the tax-free threshold?

If your total income for the year is in the lowest income or tax bracket, you pay no tax. Once you move out of the lowest bracket and into the next one, you have crossed the threshold from paying no tax to paying at least the lowest rate of tax.

If you are an Australian resident for tax purposes, the first $18,200 of your yearly income is not taxed. This is called the tax-free threshold. Therefore, by claiming the threshold, you reduce the amount of tax that is withheld from your pay during the year.

Individual Tax Return
Tax rates 2013-14

The following rates for 2013-14 applied from 1 July 2013.
Taxable income Tax on this income
0 – $18,200 Nil
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54,547 plus 45c for each $1 over $180,000
  • Car expenses between the works
  • Travel expenses work to work travel
  • Work related Uniform, protective clothing, Laundry and dry cleaning  expenses
  • Self education expenses, this should be work related.
  • Other work expenses
  • Gift or donations
  • Cost of Managing Tax Affairs