2023 Tax Rates Handbook

Tax Rates Handbook
A guide to Australian Tax Rates
2022 - 2023
Page |1 2023 Tax Rates Handbook
Table of Contents
Introduction ............................................................................................................................................................. 4
Hints & tips for successful study.......................................................................................................................... 4
Common abbreviations......................................................................................................................................... 5
Days in the year calendar – Leap Year .............................................................................................................. 6
Days in the year – Non-Leap Year ..................................................................................................................... 7
Basic elements of a tax return ............................................................................................................................. 8
Tax Rates ................................................................................................................................................................... 9
2023 Resident tax rates ................................................................................................................................ 9
2023 Resident tax rates for minors ............................................................................................................ 9
2023 Foreign resident tax rates .................................................................................................................. 9
2023 Working Holiday Maker tax rates .................................................................................................. 10
Income Categories ............................................................................................................................................... 10
Taxpayer Categories – Tax Treatment .............................................................................................................. 11
Centrelink & DVA Payments Summary ........................................................................................................... 12
Lump Sum Payments ........................................................................................................................................... 16
Employment Termination Payment (excluding Medicare levy) ................................................................. 16
Superannuation Lump Sum (excluding Medicare levy) ............................................................................... 17
Superannuation Special Circumstances .......................................................................................................... 17
Superannuation Income Stream ....................................................................................................................... 18
Preservation Age .................................................................................................................................................. 18
Deductions ............................................................................................................................................................. 19
Motor Vehicle: Cents per kilometre ........................................................................................................ 19
Motor Vehicle: Fuel Calculation ............................................................................................................... 19
Motor Vehicle: Average fuel cost table .................................................................................................. 19
Motor Vehicle: Car depreciation limit .................................................................................................... 20
Home Office: Commissioner’s Rate (PCG 2023/1) .............................................................................. 20
Laundry: Commissioner’s Rate (TR 98/5) .............................................................................................. 20
Overtime Meals: Commissioner’s Rate (TD 2022/10) ......................................................................... 20
Long Distance Truck Drivers – Commissioner’s Rate (TD 2022/10) ................................................. 21
Reasonable Daily Travel Allowance Amounts (TD 2022/10) .............................................................. 21
Reasonable Overseas Daily Travel Allowance Amounts (TD 2022/10) .......................................... 24
Medicare ................................................................................................................................................................ 26
Dependant for Medicare purposes ........................................................................................................ 26
Medicare Levy income thresholds and shading-in ranges ............................................................... 26
Medicare levy surcharge ........................................................................................................................... 27

Tax Offsets ............................................................................................................................................................. 28
Beneficiary Tax Offset ................................................................................................................................ 28
Low Income Tax Offset .............................................................................................................................. 28
Seniors & Pensioners Tax Offset (SAPTO) ............................................................................................ 28
Invalid & Invalid Carer Tax Offset ........................................................................................................... 29
Private Health Insurance Tax Offset ........................................................................................................ 31
Spouse Superannuation Tax Offset ........................................................................................................ 32
Zone or Overseas Forces Tax Offset ...................................................................................................... 32
Income Tests for Concessions & Liabilities .................................................................................................... 33
Defence Force ...................................................................................................................................................... 34
Current Specified Localities for Overseas Forces Tax Offset ............................................................ 34
Current income tax exemptions relating to military service ............................................................. 35
Study & Training Loan Repayments ................................................................................................................ 37
Capital Gains Tax (CGT)...................................................................................................................................... 38
CGT Timeline ............................................................................................................................................... 38
CPI Tables ..................................................................................................................................................... 39
Capital Works Deductions: Construction Dates................................................................................... 40
Improvement Thresholds .......................................................................................................................... 40
Class Rulings .......................................................................................................................................................... 41
Demutualisations .................................................................................................................................................. 41
Public Share Offers .............................................................................................................................................. 42
Public Floats .......................................................................................................................................................... 42
Annuities: Undeducted Purchase Price (UPP) ............................................................................................... 43
UPP of a Foreign Pension or Annuity ............................................................................................................. 43
Annuities: Life Expectation Factors .................................................................................................................. 44
Currency Exchange Rates: 1 July 2022 to 30 June 2023 ............................................................................. 45
Countries with a Double Tax Agreement (DTA) with Australia ................................................................. 45
Fuel Tax Credit Rates .......................................................................................................................................... 46
Personal Services Income .................................................................................................................................. 49
Personal Services Income: Tests .............................................................................................................. 49
Personal Services Income: Deductions .................................................................................................. 50
Value of Goods taken from Stock for Private Use (TD 2022/15) ............................................................... 51
Eligibility for Small Business Concessions........................................................................................................ 51
Small Business Entity Depreciation Rules Summary .................................................................................... 53

Introduction
The Tax Rates Handbook is a downloadable quick reference resource that is made available to all
students at the commencement of the course.
As the course is based on the 2023 financial year, all content, tax rates, threshold tables, and
references are based on the 2023 year.
Hints & tips for successful study

• Weekly assignments are to be completed and submitted online via the LMS after you have
attended or watched the corresponding module’s workshop…not before. Once weekly
assignments have been submitted online, we are unable to reset them under any
circumstances to allow a second attempt.
• In the event that multiple submissions are received, H&R Block will only record the first
result as part of your course results.
• We recommend that students take their workings and a copy of their homework
submission answers to the following theory workshop.
• Work consistently throughout the course. If you regularly set aside time to study
throughout the course, you will be more likely to succeed. Avoid cramming at the last
minute.
• Access to our online materials will remain active for the duration of this course and to
H&R Block staff for the duration of their association with H&R Block. Access to all online
platforms will be deactivated when a student withdraws or for all others, on 30 June 2024.

Common abbreviations
ABN Australian Business Number MLS Medicare Levy Surcharge

ADF Australian Defence Force NANE Non-Assessable Non-Exempt Income
ATI Adjusted Taxable Income NCC Non-Concessional Contribution
ATO Australian Taxation Office NCL Non-Commercial Loss
AV Adjustable Value NRAS National Rental Affordability Scheme
BAS Business Activity Statement OAV Opening Adjustable Value
BSB Bank, State, Branch OWDV Opening Written Down Value
CAV Closing Adjustable Value PAYG Pay As You Go
CGT Capital Gains Tax PALM Pacific Australia Labour Mobility scheme
CPI Consumer Price Index PC Prime Cost
CWDV Closing Written Down Value PHI Private Health Insurance
DGR Deductible Gift Recipient PLS Practitioner Lodgement Service
DOB Date of Birth PLS Pacific Labour Scheme
DTA Double Tax Agreement PSI Personal Services Income
DV Diminishing Value RESC Reportable Employer Super Contribution
DVA Department of Veterans’ Affairs RFB Reportable Fringe Benefits
EFT Electronic Funds Transfer RFBA Reportable Fringe Benefit Amount
ELS Electronic Lodgement Service RSA Retirement Savings Account
ESS Employee Share Scheme RTA Registered Tax Agent
ETP Employment Termination Payment SAPTO Seniors and Pensioners Tax Offset
FBT Fringe Benefits Tax SBE Small Business Entity
FEG Fair Entitlements Guarantee SFSS Student Financial Supplement Scheme
FHSA First Home Saver Account SG Superannuation Guarantee
FHSS First Home Super Saver SIC Shortfall Interest Charge
FITO Foreign Income Tax Offset SMSF Self Managed Super Fund
FTB Family Tax Benefit SSL Student Start-up Loan
GIC General Interest Charge STP Single Touch Payroll
GST Goods & Services Tax SWP Seasonal Worker Program
HECS Higher Education Contribution Scheme TARP Taxable Australian Real Property
HELP Higher Education Loan Program TD Tax Determination
HRI HELP Repayment Income TFN Tax File Number
IAS Instalment Activity Statement TR Taxation Ruling
ID ATO Interpretative Decision TSL Trade Support Loan
ITAA Income Tax Assessment Act TV Termination Value
LCA Low Cost Asset UCA Uniform Capital Allowances
LITO Low Income Tax Offset UPP Undeducted Purchase Price
LSL Long Service Leave WDV Written Down Value
LVA Low Value Asset WHM Working Holiday Maker
LVP Low Value Pool WRE Work Related Expenses

Days in the year calendar – Leap Year
July August September October November December January February March April May June
From To From To From To From To From To From To From To From To From To From To From To From To
366 1 1 335 1 32 304 1 63 274 1 93 243 1 124 213 1 154 182 1 185 151 1 216 122 1 245 91 1 276 61 1 306 30 1 337
365 2 2 334 2 33 303 2 64 273 2 94 242 2 125 212 2 155 181 2 186 150 2 217 121 2 246 90 2 277 60 2 307 29 2 338
364 3 3 333 3 34 302 3 65 272 3 95 241 3 126 211 3 156 180 3 187 149 3 218 120 3 247 89 3 278 59 3 308 28 3 339
363 4 4 332 4 35 301 4 66 271 4 96 240 4 127 210 4 157 179 4 188 148 4 219 119 4 248 88 4 279 58 4 309 27 4 340
362 5 5 331 5 36 300 5 67 270 5 97 239 5 128 209 5 158 178 5 189 147 5 220 118 5 249 87 5 280 57 5 310 26 5 341
361 6 6 330 6 37 299 6 68 269 6 98 238 6 129 208 6 159 177 6 190 146 6 221 117 6 250 86 6 281 56 6 311 25 6 342
360 7 7 329 7 38 298 7 69 268 7 99 237 7 130 207 7 160 176 7 191 145 7 222 116 7 251 85 7 282 55 7 312 24 7 343
359 8 8 328 8 39 297 8 70 267 8 100 236 8 131 206 8 161 175 8 192 144 8 223 115 8 252 84 8 283 54 8 313 23 8 344
358 9 9 327 9 40 296 9 71 266 9 101 235 9 132 205 9 162 174 9 193 143 9 224 114 9 253 83 9 284 53 9 314 22 9 345
357 10 10 326 10 41 295 10 72 265 10 102 234 10 133 204 10 163 173 10 194 142 10 225 113 10 254 82 10 285 52 10 315 21 10 346
356 11 11 325 11 42 294 11 73 264 11 103 233 11 134 203 11 164 172 11 195 141 11 226 112 11 255 81 11 286 51 11 316 20 11 347
355 12 12 324 12 43 293 12 74 263 12 104 232 12 135 202 12 165 171 12 196 140 12 227 111 12 256 80 12 287 50 12 317 19 12 348
354 13 13 323 13 44 292 13 75 262 13 105 231 13 136 201 13 166 170 13 197 139 13 228 110 13 257 79 13 288 49 13 318 18 13 349
353 14 14 322 14 45 291 14 76 261 14 106 230 14 137 200 14 167 169 14 198 138 14 229 109 14 258 78 14 289 48 14 319 17 14 350
352 15 15 321 15 46 290 15 77 260 15 107 229 15 138 199 15 168 168 15 199 137 15 230 108 15 259 77 15 290 47 15 320 16 15 351
351 16 16 320 16 47 289 16 78 259 16 108 228 16 139 198 16 169 167 16 200 136 16 231 107 16 260 76 16 291 46 16 321 15 16 352
350 17 17 319 17 48 288 17 79 258 17 109 227 17 140 197 17 170 166 17 201 135 17 232 106 17 261 75 17 292 45 17 322 14 17 353
349 18 18 318 18 49 287 18 80 257 18 110 226 18 141 196 18 171 165 18 202 134 18 233 105 18 262 74 18 293 44 18 323 13 18 354
348 19 19 317 19 50 286 19 81 256 19 111 225 19 142 195 19 172 164 19 203 133 19 234 104 19 263 73 19 294 43 19 324 12 19 355
347 20 20 316 20 51 285 20 82 255 20 112 224 20 143 194 20 173 163 20 204 132 20 235 103 20 264 72 20 295 42 20 325 11 20 356
346 21 21 315 21 52 284 21 83 254 21 113 223 21 144 193 21 174 162 21 205 131 21 236 102 21 265 71 21 296 41 21 326 10 21 357
345 22 22 314 22 53 283 22 84 253 22 114 222 22 145 192 22 175 161 22 206 130 22 237 101 22 266 70 22 297 40 22 327 9 22 358
344 23 23 313 23 54 282 23 85 252 23 115 221 23 146 191 23 176 160 23 207 129 23 238 100 23 267 69 23 298 39 23 328 8 23 359
343 24 24 312 24 55 281 24 86 251 24 116 220 24 147 190 24 177 159 24 208 128 24 239 99 24 268 68 24 299 38 24 329 7 24 360
342 25 25 311 25 56 280 25 87 250 25 117 219 25 148 189 25 178 158 25 209 127 25 240 98 25 269 67 25 300 37 25 330 6 25 361
341 26 26 310 26 57 279 26 88 249 26 118 218 26 149 188 26 179 157 26 210 126 26 241 97 26 270 66 26 301 36 26 331 5 26 362
340 27 27 309 27 58 278 27 89 248 27 119 217 27 150 187 27 180 156 27 211 125 27 242 96 27 271 65 27 302 35 27 332 4 27 363
339 28 28 308 28 59 277 28 90 247 28 120 216 28 151 186 28 181 155 28 212 124 28 243 95 28 272 64 28 303 34 28 333 3 28 364
338 29 29 307 29 60 276 29 91 246 29 121 215 29 152 185 29 182 154 29 213 123 29 244 94 29 273 63 29 304 33 29 334 2 29 365
337 30 30 306 30 61 275 30 92 245 30 122 214 30 153 184 30 183 153 30 214 93 30 274 62 30 305 32 30 335 1 30 366
336 31 31 305 31 62 244 31 123 183 31 184 152 31 215 92 31 275 31 31 336

Days in the year – Non-Leap Year
July August September October November December January February March April May June
From To From To From To From To From To From To From To From To From To From To From To From To
365 1 1 334 1 32 303 1 63 273 1 93 242 1 124 212 1 154 181 1 185 150 1 216 122 1 244 91 1 275 61 1 305 30 1 336
364 2 2 333 2 33 302 2 64 272 2 94 241 2 125 211 2 155 180 2 186 149 2 217 121 2 245 90 2 276 60 2 306 29 2 337
363 3 3 332 3 34 301 3 65 271 3 95 240 3 126 210 3 156 179 3 187 148 3 218 120 3 246 89 3 277 59 3 307 28 3 338
362 4 4 331 4 35 300 4 66 270 4 96 239 4 127 209 4 157 178 4 188 147 4 219 119 4 247 88 4 278 58 4 308 27 4 339
361 5 5 330 5 36 299 5 67 269 5 97 238 5 128 208 5 158 177 5 189 146 5 220 118 5 248 87 5 279 57 5 309 26 5 340
360 6 6 329 6 37 298 6 68 268 6 98 237 6 129 207 6 159 176 6 190 145 6 221 117 6 249 86 6 280 56 6 310 25 6 341
359 7 7 328 7 38 297 7 69 267 7 99 236 7 130 206 7 160 175 7 191 144 7 222 116 7 250 85 7 281 55 7 311 24 7 342
358 8 8 327 8 39 296 8 70 266 8 100 235 8 131 205 8 161 174 8 192 143 8 223 115 8 251 84 8 282 54 8 312 23 8 343
357 9 9 326 9 40 295 9 71 265 9 101 234 9 132 204 9 162 173 9 193 142 9 224 114 9 252 83 9 283 53 9 313 22 9 344
356 10 10 325 10 41 294 10 72 264 10 102 233 10 133 203 10 163 172 10 194 141 10 225 113 10 253 82 10 284 52 10 314 21 10 345
355 11 11 324 11 42 293 11 73 263 11 103 232 11 134 202 11 164 171 11 195 140 11 226 112 11 254 81 11 285 51 11 315 20 11 346
354 12 12 323 12 43 292 12 74 262 12 104 231 12 135 201 12 165 170 12 196 139 12 227 111 12 255 80 12 286 50 12 316 19 12 347
353 13 13 322 13 44 291 13 75 261 13 105 230 13 136 200 13 166 169 13 197 138 13 228 110 13 256 79 13 287 49 13 317 18 13 348
352 14 14 321 14 45 290 14 76 260 14 106 229 14 137 199 14 167 168 14 198 137 14 229 109 14 257 78 14 288 48 14 318 17 14 349
351 15 15 320 15 46 289 15 77 259 15 107 228 15 138 198 15 168 167 15 199 136 15 230 108 15 258 77 15 289 47 15 319 16 15 350
350 16 16 319 16 47 288 16 78 258 16 108 227 16 139 197 16 169 166 16 200 135 16 231 107 16 259 76 16 290 46 16 320 15 16 351
349 17 17 318 17 48 287 17 79 257 17 109 226 17 140 196 17 170 165 17 201 134 17 232 106 17 260 75 17 291 45 17 321 14 17 352
348 18 18 317 18 49 286 18 80 256 18 110 225 18 141 195 18 171 164 18 202 133 18 233 105 18 261 74 18 292 44 18 322 13 18 353
347 19 19 316 19 50 285 19 81 255 19 111 224 19 142 194 19 172 163 19 203 132 19 234 104 19 262 73 19 293 43 19 323 12 19 354
346 20 20 315 20 51 284 20 82 254 20 112 223 20 143 193 20 173 162 20 204 131 20 235 103 20 263 72 20 294 42 20 324 11 20 355
345 21 21 314 21 52 283 21 83 253 21 113 222 21 144 192 21 174 161 21 205 130 21 236 102 21 264 71 21 295 41 21 325 10 21 356
344 22 22 313 22 53 282 22 84 252 22 114 221 22 145 191 22 175 160 22 206 129 22 237 101 22 265 70 22 296 40 22 326 9 22 357
343 23 23 312 23 54 281 23 85 251 23 115 220 23 146 190 23 176 159 23 207 128 23 238 100 23 266 69 23 297 39 23 327 8 23 358
342 24 24 311 24 55 280 24 86 250 24 116 219 24 147 189 24 177 158 24 208 127 24 239 99 24 267 68 24 298 38 24 328 7 24 359
341 25 25 310 25 56 279 25 87 249 25 117 218 25 148 188 25 178 157 25 209 126 25 240 98 25 268 67 25 299 37 25 329 6 25 360
340 26 26 309 26 57 278 26 88 248 26 118 217 26 149 187 26 179 156 26 210 125 26 241 97 26 269 66 26 300 36 26 330 5 26 361
339 27 27 308 27 58 277 27 89 247 27 119 216 27 150 186 27 180 155 27 211 124 27 242 96 27 270 65 27 301 35 27 331 4 27 362
338 28 28 307 28 59 276 28 90 246 28 120 215 28 151 185 28 181 154 28 212 123 28 243 95 28 271 64 28 302 34 28 332 3 28 363
337 29 29 306 29 60 275 29 91 245 29 121 214 29 152 184 29 182 153 29 213 94 29 272 63 29 303 33 29 333 2 29 364
336 30 30 305 30 61 274 30 92 244 30 122 213 30 153 183 30 183 152 30 214 93 30 273 62 30 304 32 30 334 1 30 365
335 31 31 304 31 62 243 31 123 182 31 184 151 31 215 92 31 274 31 31 335

Basic elements of a tax return
ASSESSABLE INCOME Items 1 to 24
minus
ALLOWABLE DEDUCTIONS Items D1 to D15 and Item L1
equals
TAXABLE INCOME Net income on which tax is payable
TAX ON TAXABLE INCOME Tax on taxable income taking into account the
tax-free threshold
minus
NON-REFUNDABLE TAX OFFSETS Including Items T1 to T9
equals
NET TAX PAYABLE
plus
STUDY & TRAINING LOAN REPAYMENT Higher Education Loan Program (HELP)
Vet Student Loan (VSL)
Student Financial Supplement Scheme (SFSS)
Student Start Up Loan (SSL)
Trade Support Loan (TSL)
plus
MEDICARE LEVY & SURCHARGE Item M1 – taxpayer may be exempt from some
or all of the Medicare Levy
Item M2 – Medicare Levy Surcharge may apply
minus
TAX CREDITS & REFUNDABLE TAX All tax credits and refundable tax offsets (e.g.
OFFSETS franking credits, private health insurance offset)
equals
REFUND OR BALANCE PAYABLE Taxpayer will receive notice of assessment from

ATO showing a refund or balance payable

Tax Rates
2023 Resident tax rates
Taxable Income Rate Reduction Amount

$0 - $18,200 NIL NIL
$18,201 - $45,000 0.19 $3,458
$45,001 - $120,000 0.325 $9,533
$120,001 - $180,000 0.37 $14,933
$180,001 and over 0.45 $29,333
To calculate tax amount

gross tax payable = taxable income x rate - reduction amount
To calculate the adjusted tax-free threshold

= $13,464 + ($4,736 x months in Australia ) / 12 months
2023 Resident tax rates for minors
Eligible Income Rate

$0 - $416 NIL
$417 - $1,307 66% for the part over $416
Excess over $1,307 45% on entire amount of eligible income
• Earned (excepted) income taxed at (adult) marginal rates.

• The Low Income Tax Offset can only be applied to excepted income of minors.
• Where the minor has eligible income of $1,307 or less as well as excepted income, the tax
payable on the eligible income is the greater of the tax payable at the rate for minors and
the tax payable using the adult marginal tax rates.
2023 Foreign resident tax rates
Taxable Income Rate

$0 - $120,000 32.5%
$120,001 - $180,000 $39,000 + 37% of excess over $120,000
$180,001 and over $61,200 + 45% of excess over $180,000

2023 Working Holiday Maker tax rates
Taxable Income Rate

$0 - $45,000 15%
$45,001 - $120,000 $6,750 + 32.5% of excess over $45,000
$120,001 - $180,000 $31,125 + 37% of excess over $120,000
$180,001 and over $53,325 + 45% of excess over $180,000
Income Categories
Non-Assessable Non-
Assessable Non-Assessable Exempt
Exempt
Ordinary Income • Income from hobbies • GST payable
• Salary and wages • Government co-
• Bequests under a will contribution • Reportable Fringe Benefits
• Professional fees • Gambling wins
• Retail sales income • Exempt fringe benefits • Foreign resident
• Interest • Gifts unrelated to • Family Tax Benefits, income (interest,
• Cash receipts services rendered Childcare subsidy dividends) subject to
for services (e.g., birthday • Some overseas withholding tax
• Illegal business gifts, assistance employment income • Most foreign source
transactions from charitable • Payments to ADF income for temporary
organisations) personnel in war residents (foreign interest,
Statutory Income zones dividends, pensions, rent,
• Benefits - non-cash • Lottery wins
(unless from • Payments to part-time etc.)
• Dividends investment related ADF members (ADF • Superannuation
• Royalties lottery) Reserves) benefits paid from the
• Capital gains • Some social security taxed element of a
• Employment payments (e.g., superannuation fund to
allowances disability support recipients who are 60
pension for person years or older at the
• Employment underage pension time of receipt
Termination age) • COVID-19 Early release
Payments • Welfare (e.g., rent of super
• Leave payments assistance) • COVID-19 Disaster
• Partnership income • Child and spousal Payment
• Trust income maintenance
payments
P a g e | 10 2023 Tax Rates Handbook

Taxpayer Categories – Tax Treatment

Centrelink & DVA Payments Summary
Pension, Benefit or Allowance Basic Amount Tax Return

Abstudy: student 16 years and over Assessable Item 5
Abstudy: student under 16 years Exempt N/A
ABSTUDY supplementary benefits (except for School Fees Allowance
Exempt N/A
(boarding) and Additional Assistance (regular payment))
Advance of pharmaceutical allowance Exempt N/A
Age pension Assessable Item 6
Age service pension Assessable Item 6
Age service pension supplementary amount Exempt N/A
Apprenticeship Early Completion Bonus: applies to first $1,000 received Exempt N/A
Approved Program of Work Supplement (paid in addition to other support
Assessable
payments)
Assistance for Isolated Children Scheme: supplementary allowances Exempt N/A
Attendant Allowance paid by DVA to assist an eligible veteran Exempt N/A
Attendant allowance paid under the DRCA (Safety, Rehabilitation and
Item 2, 14 or
Compensation (Defence-related Claims) ACT 1988 to a person other than Assessable
15
the veteran)
Australian-American Educational Foundation (Fullbright Commission) grant Exempt N/A
Australian Government Disaster Recovery Payment Exempt N/A
Australian Victim of Terrorism Overseas Payment Exempt N/A
Australian Volunteers Program - allowance received as a volunteer in the
Exempt N/A
Australian government funded Australian Volunteers Program
Austudy payment Assessable Item 5
Back to School Bonus Exempt N/A
Bereavement Allowance Assessable Item 6
Bereavement payment – lump sum payment (Centrelink or DVA) Exempt N/A
Better start for children with disability initiative: Outer Regional and
Exempt N/A
Remote payment
Carer adjustment payment (CAP) Exempt N/A
Carer allowance and one-off payments Exempt N/A
Carer payment: carer or care receiver over pension age Assessable Item 6
Carer payment: carer and care receiver under pension age or care receiver
Exempt Item IT3
deceased
Carer payment: one-off payment Exempt Item IT3
Carer supplement Exempt N/A
Child care subsidy Exempt N/A
Child disability assistance payment Exempt N/A
Commonwealth scholarships or bursaries provided to foreign students Exempt N/A
Commonwealth secondary education assistance (Education Program
Exempt N/A
Allowance)
Community Development Employment Project Assessable Item 5
Coronavirus Supplement – paid in additional to other support payment and Item 5 or Item
Assessable
will be included on the Income Statement with those amounts 6

Coronavirus Economic Support Payment ($750 lump sum payments) NANE N/A
COVID-19 Test Isolation Payment Assessable Item 24
COVID-19 Disaster Payment NANE N/A
Crisis payment Exempt N/A
Dad & Partner Pay Assessable Item 1
Defence Force Income Support Allowance where pension, payment or
Exempt Item IT3
allowance to which it relates is exempt (Ceased 1 Jan 2022)
Defence Force Income Support Allowance where pension, payment or
Assessable Item 6
allowance to which it relates is taxable (Ceased 1 Jan 2022)
Defence Force Income Support Bonus and Bonus Bereavement Payment Exempt N/A
Disability Support Pension: over pension age Assessable Item 6
Disability Support Pension: under pension age Exempt Item IT3
Disaster income support allowance for special category visa (subclass 444)
Assessable Item 5
holders (but NOT in relation to 2019-20 bushfires)
Disaster recovery allowance (but NOT in relation to 2019-20 bushfires) Assessable Item 5
Disaster income support allowance for special category visa (subclass 444)
NANE N/A
holders (in relation 2019-20 bushfires)
Disaster recovery allowance (in relation to 2019-20 bushfires) NANE N/A
Disaster recovery payments (one off payments) Exempt N/A
Double orphan pension Exempt N/A
Economic support payment (2020) Exempt N/A
Education entry payment (Centrelink or DVA) Assessable Item 6
Education entry payment supplement Exempt N/A
Education Program Allowance (EPA) Exempt N/A
Endeavour awards research fellowship or Endeavour Executive Award Exempt N/A
Energy Supplement (Centrelink) / Payment (DVA) Exempt N/A
Essential Medical Equipment Payment Exempt N/A
Family Tax Benefit Exempt N/A
Fares allowance Exempt N/A
Farm household allowance Assessable Item 5
Helping Children with Autism package: Outer Regional and Remote
Exempt N/A
payment
Home Equity Access Scheme (formerly Pension Loans Scheme) Exempt N/A
Household assistance package (includes clean energy advance, energy
supplement payments, essential medical equipment payment, low income Exempt N/A
supplement and single income family supplement).
Income support bonus paid under Part VII of the Veterans’
Exempt N/A
Entitlement Act 1986
Income support supplement (ISS) - under DVA or Military Rehabilitation and
Compensation Act
- taxpayer under age pension age and receiving ISS on the grounds of
incapacity to work or Exempt Item IT3
- both taxpayer and partner under age pension age and partner is an
invalidity service pensioner or disability support pensioner or
- receiving ISS on the grounds of permanent incapacity to work
Income support supplement (ISS) – other than conditions listed above Assessable Item 6
Income support supplement (ISS) – supplementary amount 1
Exempt N/A

Invalidity service pension paid under the Veteran’s Entitlements Act 1986:
Exempt Item IT3
under age pension age
Invalidity service pension and the taxpayer has reached age pension age Assessable Item 6
Invalidity service pension and the taxpayer has reached age pension age –
Exempt N/A
supplementary amount
Job commitments bonus Exempt N/A
Jobseeker payment Assessable Item 5
Language, literacy and numeracy supplement Exempt N/A
Loss of earnings allowance paid under the Veteran’s Entitlements Act 1986 Exempt N/A
MRCA (Military Rehabilitation and Compensation Act) Compensation to
Exempt N/A
wholly dependent partners, eligible young persons and other dependents
MRCA and DRCA (Safety, Rehabilitation and Compensation (Defence-Related
Claims) Act) Compensation for household services, attendant care services, Exempt N/A
funeral costs, financial advice, treatment costs and vehicle schemes
MRCA Education and Training Scheme (MRCAETS) for eligible young
Exempt N/A
persons.
MRCA Education and Training Scheme (MRCAETS) for students 16 years or
Assessable Item 5
older
MRCA and DRCA Incapacity payments where payments being replaced are
Assessable
taxable payments
MRCA and DRCA Incapacity payments where payments being replaced are
not taxable payments (eg part-time reserves payments, exempt -salary and Exempt N/A
allowance while on war like service)
MRCA and DRCA permanent impairment payments Exempt Item IT3
MRCA Special rate disability pension Exempt Item IT3
Mobility allowance Exempt N/A
National Disability Insurance Scheme (NDIS): amounts the taxpayer received
Exempt N/A
directly or was paid on their behalf funded under their plan
Newborn upfront payment and newborn supplement Exempt N/A
Paid Parental Leave Assessable Item 1
Pandemic Leave Disaster Payment / High Risk Pandemic Leave Disaster
Assessable Item 24
Payment
Parenting Payment: Partnered Assessable Item 5
Parenting Payment: Single Assessable Item 6
Partner allowance – closed to new claims 20 September 2003, ceased 1
Assessable Item 5
January 2022
Partner service pension, either the partner or the veteran are at pension age
Assessable Item 6
or above
Partner service pension – partner, the partner and the veteran are under
age-pension age and the veteran receives an invalidity service pension, or
the partner is under age-pension age and the veteran has died and was Exempt Item IT3
receiving an invalidity service pension at the time of death.
Pension bonus – Centrelink closed to new applicants 1 July 2014 Exempt N/A
Pension bonus – DVA Exempt N/A
Pension supplement – for utility, phone, internet and medicine costs Exempt N/A
Pensioner education supplement and fares allowance Exempt N/A
Pharmaceutical allowances Exempt N/A
Phone allowance Exempt N/A
Prisoner of War Recognition Supplement Exempt N/A

Quarterly pension supplement Exempt N/A
Relocation scholarship Exempt N/A
Remote Area Allowance (Centrelink or DVA) Exempt Item T4
Rent assistance (Centrelink or DVA) Exempt N/A
Single income family supplement Exempt N/A
Special benefit Assessable Item 5
Service pension partner - supplementary amount Exempt N/A
Stillborn baby payment paid by Centrelink Exempt N/A
Student start-up loan Exempt N/A
Tasmanian Freight Equalisation Scheme Payments Assessable Item15
Telephone allowance Exempt N/A
Tertiary Access Payment Exempt N/A
Training and learning bonus Exempt N/A
Utilities allowance Exempt N/A
Veteran payment Assessable Item 6
Veteran payment supplementary amount Exempt N/A
Veteran’s Children Education Scheme payment for children under 16 years Exempt N/A
Veteran’s Children Education Scheme payment for children 16 years or older Assessable Item 5
Veterans Affairs disability compensation payment and allowances Exempt N/A
Veterans Affairs war widow(er)’s pension and allowances Exempt N/A
War widow(er)s and orphans pensions Exempt Item IT3
Widow Allowance (Closed to new applicants 1 July 2018, ceased 1 January
Assessable Item 5
2022)
Youth Allowance Assessable Item 5
Youth Allowance for Jobseekers Assessable Item 5
Youth Disability Supplement as a component of Youth allowance or
Assessable Item 5
ABSTUDY living allowance for recipients aged between 16 and 21
Youth Disability Supplement as a component of Youth allowance or
Exempt N/A
ABSTUDY living allowance for recipients aged under 16 years of age
Youth disability supplement as a component of disability support pension Exempt Item IT3
Note 1: - The supplementary amount of a service pension, income support supplement, age
pension payment or veteran payment is the total of:
• rent assistance;
• additional amount for each dependent child (this does not apply for veteran payment);
• remote area allowance; and
• tax exempt pension supplement.
Note 2: The supplementary amount of a Centrelink income support payment is a regular extra
payment to help with utility, phone, internet and medicine costs.

Lump Sum Payments
Lump Sum A Limited to 30%
Lump Sum B Marginal tax rate on 5% of total lump sum
Lump Sum D 2023: $11,591 plus $5,797 per complete year of service
Tax Free Limit
2024: $11,985 plus $5,994 per complete year of service
Taxable Income includes Lump Sum A + 5% of Lump Sum B
Lump Sum B Amount to be entered at Item 3 on the tax return.

= Lump Sum B amount received x 5%
Lump Sum D
Is not included in assessable income.
Lump Sum A Tax Offset

• The offset is calculated using the following steps:
• Calculate tax on total taxable income (TT)
• Subtract Lump Sum A from taxable income to arrive at residual taxable income
• Calculate tax on residual taxable income (TR)
• Calculate tax on Lump Sum A at appropriate rate (TA)
• Correct tax payable (T) = tax on residual income plus tax on Lump Sum A (T = TR + TA)
• Subtract (T) from (TT) to arrive at the Lump Sum A tax offset
Employment Termination Payment (excluding Medicare levy)
Life Under preservation age Limited to 30% up to $230,000. Excess taxed at 45%.
Benefit* Preservation age or above Limited to 15% up to $230,000. Excess taxed at 45%.
Death Dependant Tax free (NANE) up to $230,000. Excess taxed at 45%.

Benefit Non-dependant Limited to 30% up to $230,000. Excess taxed at 45%.
*ETP Life benefit may be subject to the whole of income cap ($180,000).

Superannuation Lump Sum (excluding Medicare levy)
LIFE BENEFIT
Age at time of payment Taxed Element Untaxed Element
Entire amount • Tax limited to 30% up to $1.65m

Below preservation age
taxed at max. 20% • Taxed at 45% on excess above $1.65m
• Assessable income taxed • Tax limited to 15% up to $230,000
From preservation age at 0% up to $230,000 • Tax limited to 30% from $230,001 to
to 59 years • Tax limited to 15% above $1.65m
$230,000 • Taxed at 45% on excess above $1.65m
Tax free • Tax limited to 15% up to $1.65m
60 years and over
(NANE Income) • Taxed at 45% on excess above $1.65m
DEATH BENEFIT
Recipient Taxed Element Untaxed Element
Dependant Tax free (NANE Income) Tax free (NANE Income)
Assessable income Assessable income

Non-dependant
Tax limited to 15% Tax limited to 30%
Superannuation Special Circumstances
Circumstance Tax Treatment
COVID-19 early release of super Tax free

(NANE Income)
Super lump sum payment paid to a person with a terminal medical Tax free
condition at the time the lump sum was received or within 90 days after its (NANE Income)
receipt
Superannuation lump sum death benefit received by non-dependant Tax free

because of the death of a member of the Australian Defence Force or the (NANE Income)
Australian Police Force (including Australian Protective Services) who died
in the line of duty.

Superannuation Income Stream
LIFE BENEFIT
Age at time of payment Taxed element Untaxed element

• Assessable at marginal rates
Below preservation age • 15% offset for disability
• No offset
income stream
From preservation age • Assessable at marginal rates • Assessable at marginal rates
to 59 years • 15% offset • No offset
60 years and over Nil*
• 10% tax offset*
DEATH BENEFIT
Age of deceased Age of dependant Taxed Element Untaxed Element

• Marginal rates
Less than 60 • Marginal rates
• 15% offset
Less than 60
• Marginal rates
60 years and over Nil*
• 10% offset*
• Marginal rates
60 years and over Any age Nil*
• 10% offset*
* Where a taxpayer exceeds their Defined Benefit Income Cap of $106,250 for the 2023 year (that is
they have received more than $106,250 in taxed elements, untaxed elements and tax-free
components combined from all capped defined benefit income streams), then income that was
previously NANE may become assessable and the 10% offset on untaxed elements may be limited.
Use the ATO’s Defined benefit income cap tool to determine what to include in the tax return:
https://www.ato.gov.au/calculators-and-tools/defined-benefit-income-cap-tool/
Preservation Age
Date of Birth Preservation Age
Before 01 July 1960 55
01 July 1960 to 30 June 1961 56
01 July 1961 to 30 June 1962 57
01 July 1962 to 30 June 1963 58
01 July 1963 to 30 June 1964 59
From 01 July 1964 60

Deductions
Motor Vehicle: Cents per kilometre
Financial Year / Rates Limit
2021 & 2022 72 cents per kilometre
2023 78 cents per kilometre 5,000 kilometres

2024 85 cents per kilometre
= work related kilometres travelled x rate
Motor Vehicle: Fuel Calculation
= total kms travelled x fuel consumption / 100 x average fuel price
Fuel Consumption
Visit www.greenvehicleguide.gov.au and search for the relevant motor vehicle.
Remember: this calculation is based on the total kilometres travelled – not the business
kilometres travelled.
Motor Vehicle: Average fuel cost table
PETROL – inclusive of GST
Financial
Year NSW VIC QLD SA WA NT TAS National
2018-19 141.9 141.4 143.5 141.3 143.7 156.3 153.5 142.6
2019-20 135.2 135.0 136.0 135.7 133.5 146.5 146.0 135.5
2020-21 129.1 130.4 130.8 125.3 126.8 136.9 130.7 129.3
2021-22 172.8 170.7 172.7 167.1 170.6 182.0 178.8 171.8
2022-23 183.7 183.7 183.5 178.6 179.0 197.6 187.9 182.9
DIESEL – inclusive of GST
Financial
Year NSW VIC QLD SA WA NT TAS National
2018-19 151.5 149.9 150.4 150.1 153.7 165.6 161.3 151.6
2019-20 141.1 140.0 140.9 141.1 142.1 155.4 153.1 141.6
2020-21 125.4 125.4 124.2 125.1 125.4 140.2 134.8 125.6
2021-22 174.5 174.2 174.8 173.9 172.9 187.3 181.3 174.7
2022-23 208.4 207.7 208.9 204.4 201.8 230.9 213.2 207.6
For prices for earlier years see https://www.aip.com.au/aip-annual-retail-price-data

Motor Vehicle: Car depreciation limit
Year Car Depreciation Limit

2023 $64,741
2022 $60,733
2021 $59,136
2017 - 2020 $57,581
Home Office: Commissioner’s Rate (PCG 2023/1)

Rate 67 cents per hour
Includes the total deductible expenses for additional amounts incurred for the cost of
• home and mobile internet or data expenses
• mobile and home phone usage expenses
• electricity and gas (energy expenses) for heating, cooling and lighting
• stationery and computer consumables, such as printer ink and paper.
If using this method, no additional deduction can be claimed for these expenses.
= total hours worked for year x rate
Laundry: Commissioner’s Rate (TR 98/5)

Rate Deductible clothing only $1 per load
Mixed load 50 cents per load
Remember: the taxpayer is limited to $150 using the Commissioner’s rate, if total work
expenses exceed $300.
= eligible loads washed in year x rate
Overtime Meals: Commissioner’s Rate (TD 2022/10)

Rate $33.25 per overtime meal
Remember: An allowance must be shown at Item 2 on the tax return. The claim is equal to the
cost incurred. This is capped at the Commissioner’s rate if there is no substantiation.
Step 1 Calculate how many overtime meal allowances the taxpayer was paid for.
= amount on income statement / amount received per overtime meal
Step 2 Calculate the deduction
= number of overtime meals taken x amount spent per meal

Long Distance Truck Drivers – Commissioner’s Rate (TD 2022/10)
Breakfast Lunch Dinner

$26.80 $30.60 $52.75
Remember: The amount for each meal is separate and cannot be combined into a single
daily amount or moved from one meal to another. Although the taxpayer does not need to
keep receipts to substantiate their full claim, under an audit the taxpayer would be required
to show how they calculated their claim, for example, by way of credit card statements,
menus, and some receipts.
Step 1 Calculate how many nights the taxpayer was away
= allowance received / amount received per day
Step 2 Calculate amount that can be claimed by the taxpayer (breakfast, lunch and dinner
must be calculated separately)
= number of meals x amount spent per meal
Reasonable Daily Travel Allowance Amounts (TD 2022/10)
Table 1: Employees with an annual salary of $133,450 or below
Food and drink $

Accomm Breakfast 29.90 Incidentals Total
Place
$ Lunch 33.65 $ $
Dinner 57.30
Adelaide 157 As above 21.30 299.15
Brisbane 175 As above 21.30 317.15
Canberra 168 As above 21.30 310.15
Darwin 220 As above 21.30 362.15
Hobart 147 As above 21.30 289.15
Melbourne 173 As above 21.30 315.15
Perth 180 As above 21.30 322.15
Sydney 198 As above 21.30 340.15
High-cost country
See Table 4 As above 21.30 Variable
centres
Tier 2 country
134 Breakfast 26.80 265.45
centres (see Table 5) 21.30
Lunch 30.60
Other country 121 252.45
centres Dinner 52.75

Table 2: Employees with an annual salary range of $133,451 to $237,520
Food and drink $

Place
$ Lunch 46.00 $ $
Dinner 64.50
Perth 245 As above 30.50 418.55
High-cost country See Table
As above 30.50 Variable
centres 4
Tier 2 country
160 Breakfast 29.90 310.60
centres (see Table 5) 30.50
Lunch 30.60
Other country 145 295.60
centres Dinner 59.60
Table 3: Employees with annual salaries of $237,521 and above
Food and drink $

Place
$ Lunch 54.05 $ $
Dinner 75.65
Perth 265 As above 30.50 463.40
$195, or the
relevant amount As above
All country centres 30.50 Variable
in Table 4 if
higher

Table 4: High-cost country centres – accommodation expenses
Country centre $ Country centre $ Country centre $
Albany (WA) 179 Dubbo (NSW) 148 Nhulunbuy (NT) 230

Alice Springs (NT) 150 Emerald (QLD) 156 Norfolk Island (NSW) 190
Armidale (NSW) 147 Esperance (WA) 162 Northam (WA) 189
Ballarat (VIC) 159 Exmouth (WA) 190 Nowra (NSW) 147
Bathurst (NSW) 141 Geelong (VIC) 149 Orange (NSW) 176
Bega (NSW) 145 Geraldton (WA) 165 Port Hedland (WA) 175
Benalla (VIC) 143 Gladstone (QLD) 155 Port Lincoln (SA) 170
Bendigo (VIC) 140 Gold Coast (QLD) 209 Port Macquarie (NSW) 170
Bordertown (SA) 149 Gosford (NSW) 145 Port Pirie (SA) 150
Bourke (NSW) 165 Griffith (NSW) 138 Queanbeyan (NSW) 139
Bright (VIC) 167 Halls Creek (WA) 170 Queenstown (TAS) 136
Broken Hill (NSW) 152 Hervey Bay (QLD) 157 Rockhampton (QLD) 139
Broome (WA) 220 Horn Island (QLD) 295 Roma (QLD) 146
Bunbury (WA) 157 Horsham (VIC) 154 Shepparton (VIC) 150
Bundaberg (QLD) 147 Jabiru (NT) 216 Swan Hill (VIC) 154
Burnie (TAS) 164 Kalgoorlie (WA) 172 Tennant Creek (NT) 146
Cairns (QLD) 163 Karratha (WA) 215 Toowoomba (QLD) 144
Carnarvon (WA) 156 Katherine (NT) 162 Thursday Island (QLD) 258
Castlemaine (VIC) 146 Kununurra (WA) 204 Townsville (QLD) 143
Chinchilla (QLD) 143 Launceston (TAS) 143 Wagga Wagga (NSW) 154
Christmas Island (WA) 198 Lismore (NSW) 144 Wangaratta (VIC) 158
Cobar (NSW) 144 Mackay (QLD) 161 Weipa (QLD) 190
Cocos (Keeling) Islands 331 Maitland (NSW) 163 Whyalla (SA) 145
(WA)
Coffs Harbour (NSW) 148 Mount Gambier (SA) 142 Wilpena-Pound (SA) 193
Colac (VIC) 138 Mount Isa (QLD) 168 Wollongong (NSW) 158
Dalby (QLD) 177 Mudgee (NSW) 164 Wonthaggi (VIC) 160
Dampier (WA) 175 Muswellbrook (NSW) 157 Yulara (NT) 440
Derby (WA) 170 Newcastle (NSW) 185
Devonport (TAS) 158 Newman (WA) 239

Table 5: Tier 2 country centres
Country centre Country centre Country centre Country centre

Albury (NSW) Echuca (VIC) Kingaroy (QLD) Renmark (SA)
Ararat (VIC) Goulburn (NSW) Maryborough (QLD) Sale (VIC)
Ayr (QLD) Grafton (NSW) Mildura (VIC) Seymour (VIC)
Bairnsdale (VIC) Gunnedah (NSW) Nambour (QLD) Tamworth (NSW)
Ceduna (SA) Hamilton (VIC) Naracoorte (SA) Taree (NSW)
Charters Towers (QLD) Innisfail (QLD) Narrabri (NSW) Tumut (NSW)
Cooma (NSW) Inverell (NSW) Port Augusta (SA) Warrnambool (VIC)
Cowra (NSW) Kadina (SA) Portland (VIC) Wodonga (VIC)
Reasonable Overseas Daily Travel Allowance Amounts (TD 2022/10)
If a country does not appear in Table 1, then Cost Group 1 of Table 2 should be used.
Table 1: Table of countries showing cost groups
Cost Cost Cost

Country Country Country
Group Group Group
Albania 2 Georgia 2 Norway 6
Algeria 3 Germany 5 Oman 6
Angola 5 Ghana 4 Pakistan 2
Antigua and Barbuda 6 Gibraltar 4 Panama 4
Argentina 2 Greece 4 Papua New Guinea 4
Armenia 3 Guatemala 4 Paraguay 2
Austria 5 Guyana 3 Peru 4
Azerbaijan 3 Hong Kong 5 Philippines 3
Bahamas 6 Hungary 3 Poland 3
Bahrain 5 Iceland 6 Portugal 4
Bangladesh 4 India 3 Puerto Rico 5
Barbados 6 Indonesia 3 Qatar 6
Belarus 2 Iran 1 Romania 3
Belgium 5 Iraq 4 Russia 4
Bermuda 6 Ireland 5 Rwanda 3
Bolivia 3 Israel 6 Saint Lucia 5
Bosnia 2 Italy 5 Saint Vincent 4
Brazil 3 Jamaica 4 Samoa 4
Brunei 3 Japan 5 Saudi Arabia 4
Bulgaria 3 Jordan 6 Senegal 4
Burkina Faso 3 Kazakhstan 2 Serbia 3
Cambodia 2 Kenya 4 Sierra Leone 2
Cameroon 4 Korea 6 Singapore 6
Canada 4 Kosovo 2 Slovakia 4
Chile 3 Kuwait 5 Slovenia 3
China 5 Kyrgyzstan 2 Solomon Islands 4
Colombia 3 Laos 3 South Africa 2

Congo Democratic 4 Latvia 4 Spain 5
Republic
Cook Islands 4 Lebanon 4 Sri Lanka 3
Costa Rica 3 Lithuania 3 Sudan 2
Cote D’Ivoire 4 Luxembourg 5 Surinam 3
Croatia 3 Macau 5 Sweden 5
Cuba 3 Malawi 2 Switzerland 6
Cyprus 4 Malaysia 3 Taiwan 5
Czech Republic 3 Mali 3 Tanzania 3
Denmark 6 Malta 4 Thailand 4
Dominican Republic 4 Mauritius 4 Tonga 3
East Timor 4 Mexico 3 Trinidad and Tobago 6
Ecuador 4 Monaco 6 Tunisia 2
Egypt 3 Morocco 4 Turkiye (Turkey) 3
El Salvador 3 Mozambique 3 Uganda 3
Eritrea 4 Myanmar 3 Ukraine 3
Estonia 4 Namibia 2 United Arab Emirates 6
Ethiopia 2 Nepal 3 United Kingdom 5
Fiji 3 Netherlands 5 United States of America 5
Finland 6 New Caledonia 5 Uruguay 3
France 5 New Zealand 4 Vanuatu 4
French Polynesia 6 Nicaragua 3 Vietnam 3
Gabon 6 Nigeria 4 Zambia 2
Gambia 2 North Macedonia 2
Table 2: Reasonable amounts by cost groups
Note: These amounts are determined by the Commissioner solely as the amounts that will be
accepted for the exception from the requirement to obtain written evidence.
Cost Salary $133,450 and below Salary $133,451 to $237,520 Salary $237,521 and above
Group Meals Incidentals Total Meals Incidentals Total Meals Incidentals Total
1 $60 $25 $85 $75 $25 $100 $95 $30 $125
2 $95 $30 $125 $110 $35 $145 $140 $40 $180
3 $130 $35 $165 $150 $40 $190 $185 $45 $230
4 $170 $35 $205 $190 $45 $235 $235 $50 $285
5 $200 $40 $240 $240 $50 $290 $295 $60 $355
6 $240 $45 $285 $295 $50 $345 $340 $60 $400

Medicare
Dependant for Medicare purposes
Income test applies for

Medicare Medicare Medicare
Dependant Adjusted Taxable Income
Levy Family Levy Levy
Reduction Exemption Surcharge
Non-student child First child: $1,786
Yes No No
under 21 years Each additional child: $1,410
Full time student
$1,786 Yes No No
aged under 21 years
Full time student
$1,786 Yes Yes No
aged 21 to 24 years
Medicare Levy income thresholds and shading-in ranges
Taxpayers entitled to SAPTO Other Taxpayers
Category of Taxable (Family) Taxable (Family) Taxable (Family) Taxable (Family)

Taxpayer Income at or Income above Income at or Income above
below which no which full levy below which no which full levy
levy payable payable levy payable payable
Individual $38,365 $47,956 $24,276 $30,345

0 $53,406 $66,757 $40,939 $51,173
Children or Students
No. Dependent
1 $57,166 $71,457 $44,699 $55,873

2 $60,926 $76,157 $48,459 $60,573
3 $64,686 $80,857 $52,219 $65,273
4 $68,446 $85,557 $55,979 $69,973
Each Add Add Add Add
additional
child $3,760 per child $4,700 per child $3,760 per child $4,700 per child
1. The figures applicable to married taxpayers also apply to taxpayers who are sole parents.
2. For individuals, where the taxpayer’s Taxable Income falls within the shading in range,
the Medicare levy is calculated as 10% of the excess over the lower limit.
To calculate Medicare for taxpayers who are required to pay the full Medicare levy:
= taxable income x 2%
To calculate Medicare for taxpayers who are eligible to pay Medicare at the reduced levy:
= (taxable income - lower threshold) x 10%

Medicare levy surcharge
Income for surcharge purposes – to determine the rate of MLS
• Taxable income (excluding assessable FHSS released amounts shown at Item 24 Category 3)
• Reportable fringe benefit amounts (Item IT1)
• Reportable employer superannuation contributions (Item IT2)
• Personal superannuation contributions claimed as a tax deduction (Item D12)
• Net financial investment losses (Item IT5)
• Net rental property losses (Item IT6)
• Exempt foreign employment income (Item 20N)
• Net amount on which family trust distribution tax has been paid (Item A5)
less
• Taxed element of a lump sum superannuation life benefit which is taxed at 0%
Income Thresholds for Surcharge Purposes

SINGLES $90,000 or less $90,001 - $105,000 $105,001 - $140,000 $140,001 +
0-1 $180,000 or less $180,001 - $210,000 $210,001 - $280,000 $280,001+
No. of children
FAMILIES*
2 $181,500 or less $181,501 - $211,500 $211,501 - $281,500 $281,501+

3 $183,000 or less $183,001 - $213,000 $213,001 - $283,000 $283,001+
4 $184,500 or less $184,501 - $214,500 $214,501 - $284,500 $284,501+
MLS rate 0% 1% 1.25% 1.5%
* The family threshold increases by $1,500 for each additional child after the first.
To calculate the actual Medicare levy surcharge payable:
Multiply the applicable rate by:
• taxable income, plus

• reportable fringe benefit amounts, plus
• amount on which family trust distribution tax has been paid, less
• taxed element of a lump sum superannuation life benefit which is taxed at 0%

Tax Offsets
Beneficiary Tax Offset

Where the benefit received is not more than $45,000, the following formula applies:
= 0.15 x (taxable benefit - $6,000)
If the benefit amount exceeds $45,000, the formula is:
= 0.15 x (taxable benefit - $6,000) + 0.15 x (taxable benefit - $45,000)
Low Income Tax Offset
Taxable Income LITO

Up to $37,500 $700
$37,501 to $45,000 $700 less 5 cents for each dollar over $37,500
$45,001 to $66,666 $325 less 1.5 cents for each dollar over $45,000
From $66,667 Nil
Seniors & Pensioners Tax Offset (SAPTO)
Circumstance Rebate income threshold

Single Less than $50,119
Married or de facto Less than $83,580 (combined)
Partnered and had to live apart due to illness Less than $95,198 (combined)
Rebate income is the sum of the taxpayer’s taxable income, adjusted fringe benefits total, total
net investment loss, total net rental loss, reportable employer superannuation contributions
and deductible personal superannuation contributions.
Adjusted fringe benefits total is the sum of:

• reportable fringe benefit amounts received from employers exempt from fringe benefits
tax under s 57A of the FBTA 1986 multiplied by 0.53, and
• reportable fringe benefits amount from employers not exempt from fringe benefits tax
under s 57A of the FBTA 1986.

Rebate income Maximum tax
Pensioner Code Letter / Description
Lower threshold Upper threshold offset available
A
$32,279 $50,119 $2,230
Single
B, C*
$31,279 $47,599 $2,040
Partnered lived apart due to illness
D, E*
$28,974 $41,790 $1,602
Married or de facto
* spouse was not eligible for SAPTO
Veteran Code Circumstance
V If the taxpayer is a veteran, war widow or war widower.
W If the taxpayer’s spouse is a veteran, war widow or war widower.
X Both V and W apply
Date of Birth Pension Age (in years)

From 1 January 1949 to 30 June 1952 65
From 1 July 1952 to 31 December 1953 65.5
From 1 January 1954 to 30 June 1955 66
From 1 July 1955 to 31 December 1956 66.5
From 1 January 1957 onwards 67
Invalid & Invalid Carer Tax Offset
Maximum $104,432
Dependant
Class of Dependant Offset ATI test
ATI limit
Amount applies to
Invalid or invalid carer:
Taxpayer
• spouse
• child or sibling (16 years or older) $2,943* Taxpayer and $12,054
• spouse's child or sibling (16 years or older) spouse
• parent or parent-in-law (combined)
• Dependent offsets are reduced by each dollar of ATI over $282, divided by 4. In general,
part-year apportionment applies when dependency is less than a full year.
• When it is necessary to apportion for both part year and ATI, always calculate the
maximum tax offset for the part-year and then adjust for ATI.
On the next page is a handy flowchart that can help you decide if a taxpayer is eligible to
claim the Invalid & Invalid Carer Tax Offset.

Private Health Insurance Tax Offset
Base Tier Tier 1 Tier 2 Tier 3

$90,001 – $105,001 –
Single income $90,000 or less $140,001 or more
$105,000 $140,000
$180,001 – $210,001 –
Family income* $180,000 or less $280,001 or more
$210,000 $280,000
Rebate for premiums paid from 1 July 2022 - 30 June 2023
Aged < 65 years 24.608% 16.405% 8.202% 0%
Aged 65-69 years 28.710% 20.507% 12.303% 0%
Aged 70 or over 32.812% 24.608% 16.405% 0%
* The family income threshold is increased by $1,500 for each child after the first
Claim Codes
Single Taxpayer Partnered Taxpayer

Claiming own share of the rebate
or
A No dependants C A parent claiming for a dependent-
child-only policy
Have a dependent child Taxpayer claiming spouse's share
or of rebate (has spouse's
B Paid for a dependent-person-only D agreement) Note: The spouse will
policy use Code E on their tax return
Is a dependent person on a private
health insurance policy
This code will also apply to a married Spouse is claiming taxpayer's share of
F E
person with a disability covered as a the rebate
dependent person.
(not entitled to receive the rebate)
Benefit Claim Codes
Code for premiums paid between Code for premiums paid between
Age Group
1 July and 31 March 1 April and 30 June
Aged < 65 years 30 31
Aged 65-69 years 35 36
Aged 70 or over 40 41

Spouse Superannuation Tax Offset
• The tax offset is calculated at 18% of contributions up to a ceiling of $3,000 of

contributions. The maximum tax offset is $540 (ie $3,000 x 18%). The maximum tax
offset applies if the spouse’s assessable income is $37,000 or less and contributions are
$3,000 or over.
• Where the spouse’s income* exceeds $37,000, the $3,000 ceiling reduces dollar for dollar
and cuts out at $40,000.
First calculate the contributions ceiling:
= $3,000 - (( assessable income + RFB + RESC) - $37,000)
The tax offset is the lesser of:
= contributions x 18% OR ceiling x 18%
* This income test is based on the sum of the spouse’s assessable income (disregarding their FHSS
released amount for the income year), total reportable fringe benefits amounts (RFBA) and reportable
employer superannuation contributions (RESC).
Zone or Overseas Forces Tax Offset
Offset claims are made up of a fixed amount, plus a percentage of dependant offset base
amounts. The offset values allowable are:
Ordinary Zone A $ 338 + (50% of Base Amount)
Ordinary Zone B $ 57 + (20% of Base Amount)
Special Zone $ 1,173 + (50% of Base Amount)
Overseas Forces $ 338 + (50% of Base Amount)
Dependant Offset Base Amounts 2022-23

Offset type Maximum Offset Value*
Invalid and Invalid Carer $2,943
Sole parent $1,607
Each full-time student under age 25 $376
One non-student under age 21 $376
Each other non-student under age 21 $282
* Dependant offsets are reduced by the excess of Adjusted Taxable Income over $282, divided by 4.
In general, part-year apportionment applies when dependency is less than a full year.

Income Tests for Concessions & Liabilities
Medicare SAPTO SAPTO

Levy Private Rebate Transfer Invalid &
Medicare Study &
Surcharge Health Income – (used for Invalid Spouse
Medicare Levy Training Super
LITO Income Insurance If spouse spouse Carer Super Div 293 ESS
Levy Surcharge Loan Co Cont
(for Tax use transfer Tax Cont
Paid On Repayment
liability & Offset combined amount Offset
rate) income only)
Assessable Income ✓ ✓
Taxable Income ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Reportable Fringe Benefits Amounts ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Adjusted Fringe Benefits Total ✓ ✓
Reportable Super Contributions ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Net Investment Loss (rental and other) ✓ ✓ ✓ ✓ ✓ ✓ ✓
Net amount on which FTD Tax has been paid ✓ ✓ ✓ ✓
Exempt Foreign Employment Income ✓ ✓ ✓ ✓
Certain Tax Free Government Pensions ✓ ✓
Target Foreign Income ✓
Div 293 Super Contributions ✓
Less Taxed Element of Lump Sum Super Life
Benefit Taxed at 0%
✓ ✓ ✓ ✓
Less Child Support Paid ✓
Less Allowable Business Deductions ✓
Less Assessable FHSS released amount ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Defence Force
Current Specified Localities for Overseas Forces Tax Offset
Date the area

became a specified Description of the specified locality
locality
28 October 1992 The Sinai

Area comprising the political boundaries and airspace of the Federal
11 June 1999 Republic of Yugoslavia (including the province of Kosovo), Albania and
the former Yugoslav Republic of Macedonia
Total land area, territorial waters and superjacent airspace within the
21 April 2003 internationally recognised boundaries of Israel, Jordan, Syria, Lebanon
and Egypt
Total land areas, territorial waters and superjacent airspace boundaries
24 July 2003
of the Solomon Islands
10 April 2005 Sudan and its territorial waters and superjacent airspace
Area comprising the land, sea and air areas bounded by the
28 October 2005
internationally recognised borders of Pakistan
Area comprising East Timor and its territorial waters and superjacent
12 May 2006
airspace
Area comprising Lebanon and its territorial waters and superjacent
20 July 2006
airspace
The Republic of South Sudan and Uganda, including superjacent
26 October 2011
airspace

Current income tax exemptions relating to military service
Salary and wages received by a member of the Defence force is exempt if:
• there is a certificate in force issued by the Chief of the Defence Force in writing to
the effect that the member is on eligible duty with a specified organisation in a
specified area outside Australia, and
• the eligible duty is not as, or under, attaché at an Australian embassy or legation.
The following organisations, areas and dates have been specified by regulation:
Organisation Area After the day
The land area, territorial waters, airspace and

superjacent airspace of the following
Australian Defence Force countries:
30 June 2014
on Operation Accordion • Bahrain
• Qatar
• the United Arab Emirates.
The following areas:

• the land area and superjacent
airspace of Afghanistan
• the land area, territorial waters,
Australian Defence Force airspace and superjacent airspace of
3 July 2014
on Operation Augury the following countries:
o Iraq
o Jordan
o Syria
o the United Arab Emirates.
Australian Defence Force The land area and superjacent airspace of

31 December 2014
on Operation Highroad Afghanistan.
The sea (including adjacent ports and the

area within a 10 km radius of such ports) and
superjacent airspace of:
• the Gulf of Aden
• the Gulf of Aqaba
Australian Defence Force • the Gulf of Oman
14 May 2015
on Operation Manitou • the Gulf of Suez
• the Indian Ocean north of latitude
15ºS and west of longitude 70ºE
• the Persian Gulf
• the Red Sea
• the Strait of Hormuz.

Organisation Area After the day

countries:
• Bahrain
• Cyprus
• Iraq
Australian Defence Force • Jordan 9 September 2015
on Operation Okra • Kuwait
• Qatar
• Syria
• Turkey east of longitude 35ºE
• the United Arab Emirates
The waters and superjacent airspace of the
Persian Gulf.
Australian Defence Force The land area and superjacent airspace of 1 April 2020
on Operation Orenda Mali

countries:
Australian Defence Force • Egypt 1 July 2020
on Operation Paladin • Israel
• Jordan
• Lebanon
• Syria
United Nations –
26 June 2005
Assistance Mission in The land and superjacent airspace of
(until 1 January
Afghanistan (Operation Afghanistan
2017 only)
Palate II)
Australian Defence Force The land area, territorial waters, airspace and
9 September 2018
on Operation Steadfast superjacent airspace of Iraq

Study & Training Loan Repayments
Repayment income is taxable income plus any total net investment loss (which includes net
rental losses), total reportable fringe benefits amount, reportable super contributions and
exempt foreign employment income. Repayments are calculated as a percentage of
Repayment Income.
From 1 July 2019, all study and training loans are covered by one set of thresholds and rates.
The hierarchy in which compulsory repayments are applied to study and training loans is now:
HELP Higher Education Loan Program

VSL Vet Student Loan
SFSS Student Financial Supplement Scheme
SSL Student Start-Up Loan
ABSTUDY SSL ABSTUDY Student Start-Up Loan
TSL Trade Support Loan
2023 repayment Repayment 2023 repayment Repayment

income thresholds Rate income thresholds Rate
Below $48,361 Nil $88,997 - $94,336 6.0%

$48,361 - $55,836 1.0% $94,337 - $99,996 6.5%
$55,837 - $59,186 2.0% $99,997 - $105,996 7.0%
$59,187 - $62,738 2.5% $105,997 - $112,355 7.5%
$62,739 - $66,502 3.0% $112,356 - $119,097 8.0%
$66,503 - $70,492 3.5% $119,098 - $126,243 8.5%
$70,493 - $74,722 4.0% $126,244 - $133,818 9.0%
$74,723 - $79,206 4.5% $133,819 - $141,847 9.5%
$79,207 - $83,958 5.0% $141,848 and above 10%
$83,959 - $88,996 5.5%

Capital Gains Tax (CGT)
CGT Timeline
Introduction of CGT on the disposal of assets purchased/acquired on or
20 September 1985
after this date. Indexation Method can be used from this date.
Non-capital costs of ownership are now included in the third element of

21 August 1991 the cost base for CGT assets acquired from this date (e.g. loan interest,
council rates, land tax)
Intangible asset that is not property now treated as a CGT asset (e.g.
26 June 1992
legal or equitable right)
Home first used to produce income after this date, deemed to have
20 August 1996 been acquired on the date it first became income producing. Cost base
is market value on that date.
Change in treatment of inherited main residence. For post CGT dwellings
inherited after this date, the dwelling is only required to be the main
20 August 1996 residence of the deceased just before they died for the beneficiary to be
entitled to the main residence exemption if sold within two years of the
date of death or used by an eligible person as a main residence.
Capital gain on assets purchased after this date affected by building

13 May 1997
cost write off when disposed of
Indexation method now only available for assets acquired before this
21 September 1999 date and held for more than 12 months. Also affects acquisition of
assets from a deceased estate.
1 July 2001 Change in regime for depreciating assets and for rights and options
Prior to this date only the liquidator could declare a capital loss on
22 March 2005
worthless shares. From this date a liquidator or administrator can do so.
From this date the cost base of the third element can now include
capital costs (if not already claimed as a tax deduction). Examples of this
1 July 2005
would include costs such as travel and accommodation in carrying out
initial repairs incurred prior to 1 July 2017.
Conditions for relationship breakdown rollover expanded. For transfers
before this date, where relationship breakdown rollover applies, the use
of the property prior to the transfer is disregarded when determining
12 December 2006
eligibility for main residence exemption. Transfers after this date
consider usage of the whole period of ownership (both taxpayer and
spouse).
Demutualisation of health insurance companies. CGT treatment
1 July 2007
changed.
1 July 2008 Demutualisation of friendly societies. CGT treatment changed.
Foreign and temporary residents who dispose of Taxable Australian

8 May 2012 Property after this date are no longer eligible for the 50% CGT discount
for the period they are a foreign or temporary resident.

Non-final withholding tax obligation applies to the purchaser of certain
Australian real property and related interest acquired from a foreign
1 July 2016
resident vendor. Rate was 10% and applied to property with a market
value of $2m or more up to 30 June 2017.
Foreign residents no longer entitled to main residence exemption on
property sold in Australia (exceptions apply). Transitional arrangements
9 May 2017
apply that allow the main residence exemption to apply to properties
held prior to 9 May 2017 and disposed of up until 30 June 2020.
Foreign resident withholding tax rate increased to 12.5% and applies to

1 July 2017
property with a market value of $750,000 or more.
CGT discount increased by up to 10% for capital gains made by a

1 January 2018 resident individual from a dwelling used to provide affordable housing
for at least 3 years from this date.
Foreign residents no longer entitled to claim the main residence
1 July 2020 exemption when they sell a property in Australia (exceptions apply for
certain life events).
From this date, no CGT event arises to eligible individuals on certain
1 July 2021
granny flat arrangements.
CPI Tables
31 March 30 June 30 Sept 31 Dec

1985 37.9 38.8 39.7 40.5
1986 41.4 42.1 43.2 44.4
1987 45.3 46.0 46.8 47.6
1988 48.4 49.3 50.2 51.2
1989 51.7 53.0 54.2 55.2
1990 56.2 57.1 57.5 59.0
1991 58.9 59.0 59.3 59.9
1992 59.9 59.7 59.8 60.1
1993 60.6 60.8 61.1 61.2
1994 61.5 61.9 62.3 62.8
1995 63.8 64.7 65.5 66.0
1996 66.2 66.7 66.9 67.0
1997 67.1 66.9 66.6 66.8
1998 67.0 67.4 67.5 67.8
1999 67.8 68.1 68.7 N/A

Capital Works Deductions: Construction Dates
Note: capital works depreciation is calculated using the prime cost method.
Type Date Commenced Rate

Post 18 July 1985 4%
Residential buildings
Post 16 September 1987 2.5%
Post 20 July 1982 2.5%
Non-residential buildings - (industrial not
Post 22 August 1984 4%
used for manufacture)
Post 20 July 1982 2.5%
Industrial buildings - (used for manufacture etc.)
Post 27 February 1992 4%
Post 22 August 1979 2.5%
Hotel / motel / guest house -
(at least 10 bedrooms / short term traveler
accommodation) Post 16 September 1987 2.5%
Post 27 February 1992 4%
Structural improvements, Alterations or Extensions Post 27 February 1992 2.5%
Improvement Thresholds
Income year Threshold ($) Income year Threshold ($)

1988-1989 63,450 2006-2007 112,512
1989-1990 68,018 2007-2008 116,337
1990-1991 73,459 2008-2009 119,594
1991-1992 78,160 2009-2010 124,258
1992-1993 80,036 2010-2011 126,619
1993-1994 80,756 2011-2012 130,418
1994-1995 82,290 2012-2013 134,200
1995-1996 84,347 2013-2014 136,884
1996-1997 88,227 2014-2015 140,443
1997-1998 89,992 2015-2016 143,392
1998-1999 89,992 2016-2017 145,401
1999-2000 91,072 2017-2018 147,582
2000-2001 92,802 2018-2019 150,386
2001-2002 97,721 2019-2020 153,093
2002-2003 101,239 2020-2021 155,849
2003-2004 104,377 2021-2022 156,784
2004-2005 106,882 2022-2023 162,899
2005-2006 109,447 2023-2024 174,465

Class Rulings
Class Rulings are public rulings that enable the Commissioner to provide legally binding advice
in response to a request from an entity seeking advice about the application of a relevant
provision to a specific class of persons, in relation to a particular scheme.
Each year the ATO summarises all the class rulings for the year on their website. These can be
found in the ATO Legal Database at:
https://www.ato.gov.au/Law/#Law/table-of-contents?category=A
Handy Hint
It is recommended that students and associates take the time to look up the website prior to
the start of each tax season and familiarise themselves with the companies etc that have had
Class Rulings over the past year.
The class rulings themselves usually contain an overview, the tax treatment, pertinent dates and
an example of what to do in the tax return. This is a great time saver and ensures that our
clients meet their ATO reporting requirements – when they themselves might not realise that
there are any.
Fact sheets on significant share transactions can also be found on the ATO website. These can
be useful when trying to establish the cost base of shares.
Demutualisations
Deemed
Cost base
acquisition date
National Mutual / AXA (now merged with AMP) 08/10/96 $1.14
Colonial Mutual (taken over by CBA) 19/05/97 $ 3.31
AMP 20/11/97 $10.43
AMP Pre-Listing Share Purchase 22/06/98 $19.02
IAG (NRMA, NIGL)
Allocation 19/06/00 $ 1.78
Facility purchase 06/08/00 $ 2.75
OFM Ltd 12/06/01 $ 1.65
IOOF Ltd 14/06/02 $ 2.53
Aevum Ltd (Hibernian) 02/09/02 $ 1.162
NIB Holdings 01/10/07 $ 0.85

Public Share Offers
CBA 1st Float 28/08/91 Cost base $ 5.40
CBA 2nd Float 06/10/93 Cost base $ 9.35
CBA 3rd Float 13/07/96 Cost base $10.45
(First instalment $6.00 on application; balance $4.45 due 14/11/97)
Telstra 1 15/11/97 Cost base $3.30
Telstra 2 22/10/99 Cost base $7.40
Telstra 3 19/11/06 Cost base *$3.46
QANTAS 31/07/95 Cost base $1.90
* refer to ATO Fact Sheet for detailed information on cost base

For Commonwealth Bank and Telstra Shares bought under the public share offer, the date of
purchase is the date the shares were allocated to the taxpayer with the cost base being the
initial payment plus any instalments. The cost base is indexed from the time of payment of
the first instalment.
Public Floats
Acquisition Date Cost Base
SGIO 31/03/94 $1.00
TAB 22/06/98 $2.05
QR National (now Aurizon): IPO 22/11/2010 $2.45

Loyalty Bonus shares 07/12/2011.
Queenslanders received 1:15 to a maximum of 675 shares.

Non-Queenslanders received 1:20 to a maximum of 500 shares.

Annuities: Undeducted Purchase Price (UPP)
Fixed Term Annuity
The annual UPP is calculated by first reducing the purchase price by the residual capital value
(RCV), if any, and then dividing the result by the number of years in the term.
Where there is no RCV then the purchase price is simply divided by the number of years in the
fixed term of the annuity to determine the annual UPP and adjusted if the annuity does not cover
a full income year.
Lifetime Annuities
If a lifetime annuity is purchased and is only payable for the lifetime of the annuitant, the annual
UPP is calculated by dividing the purchase price by the life expectancy of that person. The life
expectancy is determined with reference to the Australian Life Tables prepared by the Australian
Government Actuary. These tables are published every five years.
When calculating the life expectancy, it is necessary to know:
• The date the annuity started to be paid

• The age of the annuitant when the annuity started to be paid
• The gender of the annuitant (male or female)
Reversionary Lifetime Annuities

Where an annuity can revert to a surviving beneficiary the annual UPP will be determined by
reference to the person with the longer life expectancy. This is not always the younger of the
two.
UPP of a Foreign Pension or Annuity
UK Pensions
8% applied to contributory UK State Pensions
Italian Pensions
The method to calculate UPP for the 2023 year is:
(Contributions for calendar year 2022 + calendar year 2023) / 2 x 90%
Dutch Pensions
25% of the gross pension paid for old age pensions, widows, widowers
or orphans pensions from the Sociale Verzekeringsbank (SVB) under the
Netherlands social insurance system.

Annuities: Life Expectation Factors
Age at
Annuities and Pensions – life expectation factors
start of
first 01/01/1996 – 01/01/2000 – 01/01/2005 – 01/01/2010 – 01/01/2015 –
01/01/2020 +
payment 31/12/1999 31/12/2004 31/12/2009 31/12/2014 31/12/2019
period M F M F M F M F M F M F
30 46.07 51.48 47.26 52.30 49.07 53.72 50.20 54.44 51.04 54.96 51.65 55.42
31 45.13 50.50 46.32 51.32 48.13 52.75 49.25 53.46 50.08 53.98 50.68 54.44
32 44.19 49.53 45.38 50.35 47.19 51.77 48.30 52.48 49.13 53.00 49.72 53.46
33 43.25 48.56 44.44 49.38 46.24 50.80 47.35 51.50 48.17 52.02 48.77 52.48
34 42.31 47.58 43.50 48.41 45.30 49.82 46.40 50.52 47.22 51.04 47.81 51.51
35 41.37 46.61 42.57 47.44 44.35 48.85 45.45 49.55 46.26 50.06 46.85 50.53
36 40.42 45.64 41.63 46.47 43.41 47.88 44.50 48.58 45.31 49.09 45.90 49.56
37 39.48 44.67 40.69 45.50 42.47 46.91 43.55 47.60 44.36 48.12 44.95 48.58
38 38.54 43.70 39.75 44.53 41.53 45.94 42.60 46.63 43.41 47.14 44.00 47.61
39 37.60 42.74 38.81 43.56 40.58 44.98 41.66 45.66 42.46 46.18 43.05 46.64
40 36.66 41.77 37.88 42.60 39.65 44.01 40.71 44.70 41.51 45.21 42.10 45.68
41 35.73 40.81 36.94 41.64 38.71 43.05 39.77 43.73 40.57 44.24 41.16 44.71
42 34.79 39.85 36.01 40.68 37.77 42.09 38.83 42.77 39.62 43.28 40.22 43.75
43 33.86 38.90 35.08 39.72 36.84 41.14 37.89 41.81 38.68 42.32 39.29 42.79
44 32.94 37.95 34.15 38.76 35.91 40.18 36.96 40.85 37.75 41.36 38.35 41.83
45 32.01 37.00 33.22 37.81 34.98 39.23 36.03 39.90 36.81 40.41 37.43 40.88
46 31.09 36.05 32.30 36.86 34.06 38.28 35.10 38.95 35.88 39.45 36.50 39.92
47 30.18 35.11 31.38 35.92 33.13 37.33 34.18 38.00 34.95 38.50 35.58 38.97
48 29.27 34.18 30.46 34.98 32.22 36.39 33.26 37.05 34.03 37.56 34.66 38.03
49 28.37 33.25 29.55 34.04 31.30 35.45 32.34 36.11 33.11 36.61 33.75 37.08
50 27.48 32.32 28.64 33.11 30.39 34.51 31.43 35.17 32.20 35.67 32.84 36.14
51 26.59 31.40 27.74 32.18 29.49 33.58 30.53 34.24 31.29 34.74 31.93 35.21
52 25.71 30.49 26.85 31.26 28.59 32.66 29.63 33.31 30.38 33.80 31.03 34.27
53 24.84 29.58 25.97 30.34 27.69 31.73 28.73 32.38 29.49 32.87 30.13 33.34
54 23.98 28.68 25.09 29.43 26.80 30.82 27.84 31.45 28.59 31.95 29.24 32.42
55 23.13 27.78 24.22 28.53 25.92 29.91 26.95 30.53 27.71 31.02 28.35 31.49
56 22.30 26.90 23.36 27.63 25.05 29.00 26.08 29.61 26.83 30.10 27.47 30.57
57 21.47 26.02 22.52 26.74 24.19 28.10 25.20 28.70 25.95 29.19 26.60 29.66
58 20.66 25.14 21.68 25.86 23.34 27.21 24.34 27.79 25.09 28.28 25.73 28.75
59 19.87 24.27 20.86 24.98 22.49 26.32 23.48 26.89 24.22 27.37 24.87 27.84
60 19.09 23.42 20.05 24.11 21.66 25.44 22.63 26.00 23.37 26.47 24.02 26.93
61 18.32 22.57 19.25 23.25 20.84 24.57 21.79 25.11 22.52 25.57 23.17 26.03
62 17.57 21.72 18.46 22.39 20.04 23.71 20.96 24.23 21.68 24.68 22.33 25.14
63 16.83 20.89 17.70 21.54 19.24 22.85 20.14 23.35 20.85 23.80 21.50 24.24
64 16.12 20.07 16.94 20.70 18.46 22.00 19.34 22.48 20.03 22.92 20.67 23.36
65 15.41 19.26 16.21 19.88 17.70 21.15 18.54 21.62 19.22 22.05 19.86 22.47
66 14.73 18.45 15.49 19.06 16.95 20.32 17.76 20.76 18.41 21.18 19.04 21.60
67 14.06 17.66 14.79 18.25 16.21 19.49 16.99 19.92 17.62 20.33 18.24 20.73
68 13.40 16.89 14.11 17.46 15.48 18.67 16.24 19.08 16.84 19.48 17.45 19.87
69 12.76 16.12 13.44 16.67 14.78 17.87 15.49 18.24 16.07 18.64 16.67 19.02
70 12.14 15.37 12.80 15.90 14.08 17.08 14.76 17.42 15.31 17.80 15.90 18.18
71 - - 12.17 15.14 13.41 16.29 14.04 16.61 14.56 16.98 15.14 17.35
72 - - 11.56 14.40 12.75 15.53 13.33 15.82 13.83 16.18 14.39 16.53
73 - - 10.96 13.67 12.11 14.78 12.64 15.03 13.11 15.38 13.66 15.73
74 - - 10.38 12.96 11.50 14.05 11.96 14.27 12.40 14.60 12.95 14.93
75 - - 9.82 12.26 10.90 13.33 11.31 13.51 11.72 13.83 12.25 14.15
76 - - 9.27 11.58 10.32 12.63 10.68 12.78 11.05 13.08 11.57 13.39

Currency Exchange Rates: 1 July 2022 to 30 June 2023
To convert this amount to Australian dollars
= foreign amount received / conversion rate
Average rate for year ended

Country Currency
31/12/2022 30/06/2023
Canada 0.9029 n/a Canadian dollar
China 4.6704 4.6826 Renminbi
Europe 0.6600 0.6439 Euro
Hong Kong 5.4398 5.2775 Hong Kong dollar
India 54.5406 54.9312 Indian Rupee
Indonesia 10309.0080 10201.7240 Rupiah
Japan 91.1228 92.4880 Yen
Malaysia 3.0535 3.0252 Malaysian ringgit
New Zealand 1.0937 1.0928 New Zealand dollar
Singapore 0.9575 0.9187 Singapore dollar
South Korea 895.8714 890.2842 South Korean won
Switzerland 0.6631 0.6322 Swiss franc
Taiwan 20.6741 20.6747 New Taiwan dollar
Thailand 24.3298 23.7675 Baht
UK 0.5626 0.5597 Pound sterling
USA 0.6947 0.6734 US dollar
Vietnam 16249.6948 15961.9320 Dong
Countries with a Double Tax Agreement (DTA) with Australia

Argentina France Japan Papua New Guinea Sri Lanka
Austria Germany Kiribati Philippines Sweden
Belgium Greece Korea Poland Switzerland
Canada Hungary Malaysia Romania Taiwan (Taipei)
Chile Iceland Malta Russia Thailand
China India Mexico Singapore Turkey
Czech Republic Indonesia Netherlands Slovakia United Kingdom
Denmark Ireland New Zealand South Africa United States
Fiji Israel Norway Spain Vietnam
Finland Italy

Fuel Tax Credit Rates
Table 1: Rates for fuel acquired from 1 February 2023 to 30 June 2023
Used in heavy All other business uses

Eligible fuel type Unit vehicles for (including to power
travelling on auxiliary equipment of a
public roads heavy vehicle)
(See Note 1) (See Note 2)
Liquid fuels, ie diesel or
cents per litre 20.5 47.7
petrol
Blended fuels: B5, B20, E10 cents per litre 20.5 47.7
Blended fuel: E85 cents per litre 0 20.415
Liquefied petroleum gas
cents per litre 0 15.6
(LPG) (duty paid)
Liquefied natural gas
(LNG) or compressed
cents per kilogram 0 32.7
natural gas (CNG) (duty
paid)
B100 cents per litre 0 11.1
Table 2: Rates for fuel acquired from 29 September 2022 to 31 January 2023

Liquid fuels, i.e., diesel or
cents per litre 18.8 46.0
petrol
Blended fuels: B5, B20, E10 cents per litre 18.8 46.0

(LPG) (duty paid)
(LNG) or compressed
paid)

Table 3: Rates for fuel acquired from 1 August 2022 to 28 September 2022

cents per litre 0 (see Note 3) 23.0
petrol
Blended fuels: B5, B20, E10 cents per litre 0 (see Note 3) 23.0

(LPG) (duty paid)
(LNG) or compressed
paid)
Table 4: Rates for fuel acquired from 1 July 2022 to 31 July 2022

cents per litre 0 (see Note 3) 22.1
petrol
Blended fuels: B5, B20, E10 cents per litre 0 (see Note 3) 22.1

(LPG) (duty paid)
(LNG) or compressed
paid)

Note 1: From 1 November 2019, this rate includes fuel used to power passenger
air-conditioning of buses and coaches.
Note 2 Claims for packaging or supplying fuels can use the 'all other business
uses' rate for the appropriate eligible fuel type.
Note 3 From 30 March 2022 until 28 September 2022, businesses using fuel in heavy
vehicles for travelling on public roads will not be able to claim fuel tax credits as the
road user charge (RUC) exceeds the excise duty paid.
For the BAS
Fuel tax credit

= litres purchased x rate for fuel in relevant period
• Note: care must be taken to check dates of fuel purchased against the
relevant table.
• From the March 2016 BAS onwards, if the taxpayer claims less than $10,000
in fuel tax credits each year, they can use these simplified methods to
calculate their fuel tax credits:
o When fuel tax credit rates change in a Business Activity Statement
(BAS) period, the taxpayer can use the rate that applies at the end
of the BAS period
o To work out the total litres of fuel for the taxpayer’s claim, they can
use the total cost of fuel they purchased in the BAS period and
then divide that amount by the average price of the fuel for that
period.

Personal Services Income
Personal Services Income: Tests

Personal Services Income: Deductions
Can I claim it if Can I claim it if

the PSI the PSI legislation
legislation doesn't apply to
Deduction
applies to me? me?
Item 14 Item 15
Premiums for workers compensation, public liability
Yes Yes
and professional indemnity insurance
Bank and other account-keeping fees and charges Yes Yes
Tax-related expenses, such as the cost of preparing
Yes Yes
and lodging tax returns or BAS forms
Registration renewals or licensing fees Yes Yes
Expenses for advertising, tendering and quoting for
Yes Yes
work
Decline in value for depreciating assets Yes Yes
Running expenses for your home office (not including
Yes Yes
rent, mortgage interest, rates or land taxes, see below)
Rent, mortgage interest, rates or land tax for your
No Yes
home that is a place of business
If you are a personal services entity, expenses or FBT
for more than one car that is used partly or solely for No Yes
private purposes
Salary and wages for an arm's length employee (not
Yes Yes
an associate)
Salary and wages paid to the principal worker within
14 days of the end of each PAYG withholding payment Yes Yes
period
Contributions to a super fund on behalf of the
principal worker or an arm's length employee (not an Yes Yes
associate)
Reasonable amounts paid to an associate for principal
Yes Yes
work
Contributions up to the super guarantee amount for
an associate doing up to, but less than, 20% of the Yes Yes
principal work
Reasonable amounts paid to an associate for non-
No Yes
principal work
Reasonable contributions to a super fund for an
No Yes
associate doing solely non-principal work

Value of Goods taken from Stock for Private Use (TD 2022/15)
Amount (excluding Amount (excluding
Type of business GST) for Adult/Child GST) for Child 4-16
over 16 years years
Bakery 1,360 680
Butcher 990 495
Restaurant/cafe (licensed) 4,830 1,950
Restaurant/cafe (unlicensed) 3,900 1,950
Caterer 4,120 2,060
Delicatessen 3,900 1,950
Fruiterer/greengrocer 1,010 505
Takeaway food shop 4,030 2,015
Mixed business (includes milk bar,
4,870 2,435
general store and convenience store)
Eligibility for Small Business Concessions

Turnover Turnover Turnover Turnover
Concession less than $10m to less $50m to less $500m to
$10m than $50m than $500m less than $5B
Deductions
Simplified depreciation rules –
Yes Yes Yes No
instant asset write-off
Simplified depreciation rules –
Yes No No No
small business pool
Backing business investment
Yes Yes Yes No
(1 March 2020 to 30 June 2021)
Temporary full expensing (from
Yes Yes Yes Yes
6 October 2020 to 30 June 2023)
Accelerated depreciation for
Yes Yes Yes Yes
primary producers
Small business technology
investment boost (22 March Yes Yes No No
2022 to 30 June 2023)
Small business skills and training
boost (29 March 2022 to 30 June Yes Yes No No
2024)
Deductions for professional
Yes Yes No No
expenses for start-ups
Immediate deductions for
Yes Yes No No
prepaid expenses

Turnover Turnover Turnover Turnover
Concession less than $2m to less $5m to less $10m to less
$2m than $5m than $10m than $50m
Calculating and Paying Income Tax
Lower company tax rates Yes Yes Yes Yes
Small business income tax offset Yes Yes No No
PAYG instalments concession Yes Yes Yes Yes
Simplified Record Keeping
Simplified trading stock rules Yes Yes Yes Yes
Two-year amendment period Yes Yes Yes Yes
Capital Gains Tax (CGT)
Small business restructure
Yes Yes Yes No
rollover
CGT 15-year asset exemption Yes No No No
CGT 50% active asset reduction Yes No No No
CGT retirement exemption Yes No No No
CGT rollover Yes No No No
Contributions of small business
CGT concession amounts to Yes No No No
super fund
GST, BAS & Excise
Simpler BAS Yes Yes Yes No
Accounting for GST on a cash
Yes Yes Yes No
basis
Annual apportionment of GST
Yes Yes Yes No
input tax credits
Paying GST by instalments Yes Yes Yes No
Excise concession Yes Yes Yes Yes
Fringe Benefits Tax (FBT)
FBT car parking exemption Yes Yes Yes Yes
FBT work-related devices
Yes Yes Yes Yes
exemption
Superannuation
Superannuation clearing house Yes Yes Yes No
Contributions of small business
CGT concession amounts to Yes No No No
super fund

Small Business Entity Depreciation Rules Summary
Applies to SBE < $2m turnover
Prior to 01/07/12 01/7/12 to 31/12/13 01/01/14 to 11/05/15
Instant Asset Write-Off

Instant Asset Write-Off Instant Asset Write-Off
<$6,500 immediate deduction
<$1,000 immediate deduction <$1,000 immediate deduction
- including motor vehicle
Two SBE Pools One SBE Pool One SBE Pool
There were two pools for There is one pool for assets that There is one pool for all assets
assets costing $1,000 or more: cost $6,500 or more: costing $1,000 or more:
15% in the first year 15% in the first year

General pool
for assets with an effective life 30% in subsequent years. 30% in subsequent years.
of less than 25 years
Where an asset costs If the balance of a general
depreciated at a rate of 30% $6,500 or more, it must be small business pool falls below
(15% in the first year). added to the general SBE $1,000 after adding
pool even if the business acquisitions and deducting
Long life pool usage proportion brings its disposals, but before
for assets with an effective value to be allocated to the calculating the decline in value
life of 25 years or more pool down to less than that for the year, that balance may
amount. An instant asset be claimed as a deduction.
depreciated at a rate of 5% write-off cannot be claimed.
(2.5% in the first year).
Motor Vehicles – Motor Vehicle –

Special Rules Special Rules Repealed
>$6,500 - An immediate The special rules for certain
deduction of $5,000 is claimed motor vehicles, introduced on 1
in the year acquired or first July 2012 are repealed, for any
used. The remainder of the cost motor vehicle first used or
is then added to the SBE pool and installed ready for use on or
depreciated at 15% in that first after 1 January 2014.
year and 30% in later years.

Applies to SBE < $10m
turnover
turnover to 30 June 2016; < Applies to SBE <$10m
Instant asset write-off also
$10m turnover from 1 July turnover
applies to other businesses
2016
with turnover < $50m
From 7.30pm (AEST) on 29/01/2019 until before From 7.30pm (AEDT)

12/05/2015 until 28/01/2019 7.30pm (AEDT) 02/04/2019 02/04/2019 until 11/03/2020
Instant Asset Write Off Instant Asset Write Off Instant Asset Write Off
<$20,000 immediate <$25,000 immediate < $30,000 immediate
deduction deduction deduction
SBE Pool SBE Pool SBE Pool
There is one pool for There is one pool for There is one pool for
all assets costing $20,000 or all assets costing $25,000 or all assets costing $30,000 or
more: more: more:
15% in the first year 15% in the first year 15% in the first year
30% in subsequent years. 30% in subsequent years. 30% in subsequent years.
If the balance of a general If the balance of a general If the balance of a general

small business pool falls below small business pool falls below small business pool falls below
$20,000 after adding $25,000 after adding $30,000 after adding
acquisitions and deducting acquisitions and deducting acquisitions and deducting
disposals, but before disposals, but before disposals, but before
calculating the decline in value calculating the decline in value calculating the decline in value
for the year, that balance may for the year, that balance may for the year, that balance may
be claimed as a deduction. be claimed as a deduction. be claimed as a deduction.
Note: For businesses with a

turnover of $10m or more,
assets not eligible for
immediate write-off are
depreciated using effective life
depreciation.

turnover Applies to SBE <$10m
Instant asset write-off and turnover
Applies to SBE <$10m
accelerated depreciation Accelerated depreciation
turnover
also applies to other also applies to businesses
businesses with < $500m with < $500m turnover
turnover
Purchased from 7.30pm
(AEST) on 12/03/2020 until
From 01/01/2021 to From 01/07/2021 -
31/12/2020, provided
30/06/2021 30/06/2023
installed ready for use by 30
June 2021
Instant Asset Write-Off Instant Asset Write-Off
<$1,000 immediate deduction <$1,000 immediate deduction
<$150,000 immediate
Replaced by temporary full Replaced by temporary full
deduction
expensing expensing
SBE Pool SBE Pool
All assets costing the same or more than the instant asset All assets costing $1,000 or
write-off threshold, other than those eligible for accelerated more:
depreciation under the ‘backing business investment measures’
15% in the first year
15% in the first year
30% in subsequent years. 30% in subsequent years
For assets eligible for accelerated depreciation, claim: If the balance of a general
small business pool falls below
57.5% in the first year $1,000 after adding
30% in subsequent years acquisitions and deducting
disposals, but before
Eligible assets are new depreciating assets first held and first calculating the decline in value
used and installed ready for use on or after 12 March 2020 and for the year, that balance may
installed ready for use prior to 30 June 2021. be claimed as a deduction.
If the balance of a general small business pool falls below the Replaced by temporary full
instant asset write-off threshold, after adding acquisitions and expensing
deducting disposals, but before calculating the decline in
value for the year, that balance may be claimed as an
immediate deduction.
Backing business investment measures

For businesses with turnover of $10m or more and less than
$500m, or SBEs not using the SBE depreciation method, where
an asset is not eligible for immediate write-off, effective life
depreciation is used. For eligible assets, accelerated effective
life depreciation is available:
deduction of 50% of the cost of the asset on installation
remainder of the cost of the asset depreciated using effective

life (either DV or PC).

Applies to SBE <$10m turnover Applies to SBE <$10m turnover
From 01/07/2023 - 30/06/2024 01/07/2024 onwards

< $1,000 immediate deduction
< $1,000 immediate deduction
(proposed increase to $20,000)
SBE Pool SBE Pool
All assets costing $1,000* or more: All assets costing $1,000 or more:
15% in the first year 15% in the first year
30% in subsequent years 30% in subsequent years
If the balance of a general small business If the balance of a general small business
pool falls below $1,000* after adding pool falls below $1,000 after adding
acquisitions and deducting disposals, but acquisitions and deducting disposals, but
before calculating the decline in value for before calculating the decline in value for
the year, that balance may be claimed as a the year, that balance may be claimed as a
deduction. deduction.
($20,000 is proposed legislation is passed)

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2023 Tax Rates Handbook

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Tax Rates Handbook

A guide to Australian Tax Rates

Page |2 2023 Tax Rates Handbook

Page |3 2023 Tax Rates Handbook

Hints & tips for successful study

Page |4 2023 Tax Rates Handbook

ABN Australian Business Number MLS Medicare Levy Surcharge

Page |5 2023 Tax Rates Handbook

Page |6 2023 Tax Rates Handbook

Page |7 2023 Tax Rates Handbook

ASSESSABLE INCOME Items 1 to 24

ALLOWABLE DEDUCTIONS Items D1 to D15 and Item L1

TAXABLE INCOME Net income on which tax is payable

NON-REFUNDABLE TAX OFFSETS Including Items T1 to T9

NET TAX PAYABLE

REFUND OR BALANCE PAYABLE Taxpayer will receive notice of assessment from

Page |8 2023 Tax Rates Handbook

2023 Resident tax rates

Taxable Income Rate Reduction Amount

To calculate tax amount

To calculate the adjusted tax-free threshold

2023 Resident tax rates for minors

Eligible Income Rate

• Earned (excepted) income taxed at (adult) marginal rates.

2023 Foreign resident tax rates

Taxable Income Rate

Page |9 2023 Tax Rates Handbook

Taxable Income Rate

P a g e | 10 2023 Tax Rates Handbook

P a g e | 11 2023 Tax Rates Handbook

Pension, Benefit or Allowance Basic Amount Tax Return

P a g e | 12 2023 Tax Rates Handbook

P a g e | 13 2023 Tax Rates Handbook

P a g e | 14 2023 Tax Rates Handbook

P a g e | 15 2023 Tax Rates Handbook

Lump Sum A Limited to 30%

Lump Sum B Marginal tax rate on 5% of total lump sum

Taxable Income includes Lump Sum A + 5% of Lump Sum B

Lump Sum B Amount to be entered at Item 3 on the tax return.

Lump Sum A Tax Offset

Employment Termination Payment (excluding Medicare levy)

Death Dependant Tax free (NANE) up to $230,000. Excess taxed at 45%.

P a g e | 16 2023 Tax Rates Handbook

Entire amount • Tax limited to 30% up to $1.65m

Dependant Tax free (NANE Income) Tax free (NANE Income)

Assessable income Assessable income

Superannuation Special Circumstances

Circumstance Tax Treatment

COVID-19 early release of super Tax free

Superannuation lump sum death benefit received by non-dependant Tax free

P a g e | 17 2023 Tax Rates Handbook

Age at time of payment Taxed element Untaxed element

Age of deceased Age of dependant Taxed Element Untaxed Element

P a g e | 18 2023 Tax Rates Handbook

Motor Vehicle: Cents per kilometre

Financial Year / Rates Limit

2021 & 2022 72 cents per kilometre

2023 78 cents per kilometre 5,000 kilometres

= work related kilometres travelled x rate

Motor Vehicle: Fuel Calculation