TAX RATES & FORMULA SHEET

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TAX RATES & FORMULA SHEET –2021
TAXATION
Income Tax Rates

Individual Tax Rates (Adult Australian Residents) – 2020/2021
Taxable Income	Marginal Tax Rate	Tax Payable
$0 – $18,200	0%	Nil
$18,201 – $45,000	19%	$0 + 19% on the excess over $18,200
$45,001 – $120,000	32.5%	$5,092 + 32.5% on the excess over $45,000
$120,001 – $180,000	37%	$29,467 + 37% on the excess over $120,000
$180,001 +	45%	$51,667 + 45% on the excess over $180,000

The above rates do NOT include the Medicare levy of 2%

Medicare Levy (for the year ended 30 June 2021)*
Taxable Income Thresholds(individual)	Medicare Levy Rate
Up to $22,801	Nil
22,801- $28,501	10% of taxable income between thresholds
Above $28,501	2% of taxable income

*The threshold rates for the year ended 30 June 2021 were not available as on January 1st 2021. The above
rates will be used during the course for the year 2021.
Please note that there are different income thresholds for families, seniors and pensioners. These are not
required in this course.

Medicare Levy Surcharge (for the year ended 30 June 2021)*
The Medicare levy surcharge (MLS) below applies to singles and families that do not have private health insurance.
Income Level
Unchanged	Tier 1	Tier 2	Tier 3
Singles	$90,000 or less	$90,001 – $105,000	$105,001 -$140,000	$140,001 or more
Families	$180,000 or less	$180,001 -$210,000	$210,001 -$280,000	$280,001 or more
Medicare Levy Surcharge (MLS)
MLS Rate	0.0%	1.0%	1.25%	1.5%

*The threshold rates for the year ended 30 June 2021 were not available as on January 1st 2021. The above
rates will be used during the course for the year 2021.

Tax Rates for Minors – 2020/2021
Unearned Income	Tax Payable
$0 – $416	Nil
$417 – $1,307	$0 + 66% of the excess over $416
Over $1,307	45% of the total amount of unearned income

Other Tax Rates
Complying superannuation fund	15%
Non-complying superannuation fund	45%

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RMIT Classification: Trusted

Company Tax	30% Turnover > $50 Million 26.00 % Turnover < $50Million
Tax Offsets/Rebates
Low income tax offset (LITO): $700 max (2020/2021)
Taxable income:	LITO Offset:
$37,500 or less	700
$37,501 -$45,000	$700 – [(Taxable Income – $37,500) x 5%]
$45,001 – $66,667	$325 minus ((Taxable Income minus $45,000) x 1.5%))
More than $66,667	Nil
Low & Middle income tax offset (LMITO) (2020/2021)
Taxable Income:	LMITO Offset
Up to $37,000	$255
$37,001 to $48,000	$255 plus 7.5% of income above $37,000
$48,001 to $90,000	$1,080
$90,001 to $126,000	$1,080 less 3% of income above $90,000
Private health insurance rebate (2020/2021)
Private health insurance rebate is income- and age-tested.
Income Level
Base tier	Tier 1	Tier 2	Tier 3
Singles	$90,000 or less	$90,001 – $105,000	$105,001 -$140,000	$140,001 or more
Families	$180,000 or less	$180,001 -$210,000	$210,001 -$280,000	$280,001 or more
Private Health Insurance Rebate
Aged under 65	25.059%	16.706%	8.352%	0%
Aged 65 – 69	29.236%	20.883%	12.529%	0%
Ages 70 or	33.413%	25.059%	16.706%	0%
over Rebate can be claimed either as: (1) a reduction in premiums paid to the health insurer, or (2) a tax offset through tax assessment.
Spouse super contributions tax offset: $540 max (2020/2021)
Spouse’s assessable income:	Spouse super contributions tax offset:
Up to $37,000	$540 max, based on 18% of a maximum contribution of $3,000
$37,001 – $40,000	Lesser of: (1) [$3,000 – (assessable income – $37,000)] x 18 %, or (2) 18% of contributions up to $3,000
$40,000 or more	Nil

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Capital Gains Tax (CGT)
The following CPI figures are used to calculate the indexed cost base:
CPI March June September December
1985	–	–	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	68.7frozen

Fringe Benefits Tax (FBT)
FBT Rate: 47% (FBT Year ending 31 March 2021)
Gross up factor (entitlement to GST): 2.0802 Gross up factor (No entitlement to GST): 1.8868
Statutory Formula Method for a Motor Vehicle Fringe Benefit
Calculated as follows: A x B x C – E D	Where: A = base value of car B = statutory fraction C = number of days in the year when a car benefit was provided to an employee D = number of days in the year E = amount of recipient’s contribution
Statutory Fraction (B): 20%
Operating Cost Method for a Motor Vehicle Fringe Benefit
Calculated as follows: [C x (100% – BP)] – R	Where: C = operating costs of the car during the period BP = business use percentage applicable to the car R = recipient’s contribution
Deemed depreciation rate (acquisition date 10 May 2006 or later):	25%
Statutory/benchmark interest rate (FBT Year ending 31 March 2021):	4.80%

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RMIT Classification: Trusted
SUPERANNUATION & RETIREMENT PLANNING

Superannuation for 2021/2021
Employer SG minimum	9.5% of annual income
contribution Tax payable on concessional contributions	15%
Tax payable on superannuation earnings	15%
Concessional Contribution Cap	$25,000
Non Concessional Contributions Cap Ability to bring forward: Age <67 years	Superannuation Balance <$1.4 million	Superannuation Balance $1.4-1.5 million	Superannuation Balance $1.5-1.6 Million	Superannuation Balance >$1.6 Million
$ 100,000 Bring 3 years forward ($300,000)	$ 100,000 Bring 2 years forward ($200,000)	$100,000 Bring no years forward ($0)	$0 Bring no years forward ($0)
Cap on Superannuation (Applied when transferring to a pension scheme)	$1.6 Million

Unused concessional cap carry forward: From 1 July 2018 an individual who has a total
superannuation balance of less than $500,000 can contribute more than the concessional
contribution threshold under a carry forward arrangement. Individuals are able to access the unusued
concessional contribution on a rolling basis for five years.

Government Super Co-contribution – 2020/2021 ($500 max)
The co-contribution is the lesser of 50% of the contribution and $500 – [(AI – $ $39,837) x 0.0333], where: AI = assessable income + reportable fringe benefits + reportable employer super contributions – business deductions
AI:	Maximum super co-contribution:
$39,837 or less	$500
$39,837 – $54,837	$500 – [(AI – $39,837) x 0.0333]
$54,837 or more	Nil

Preservation Age – Men and Women
Date of birth	Preservation age
Before 1 July 1960	55
1 July 1960 – 30 June 1961	56
1 July 1961 – 30 June 1962	57
1 July 1962 – 30 June 1963	58
1 July 1963 – 30 June 1964	59

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From 1 July 1964

60

Bona Fide Redundancy Payments – 2020/2021
Tax-free amount:	First $ 10,989 + $ 5,496 for each completed year of service
Amount above tax-free portion:	Treated as Life Benefit Termination Payment and is subject to tax rates depending on age and cap levels.

Taxation of Withdrawals from Superannuation Fund for 2020/2021
Component	Age	Tax on LUMP SUM	Tax on INCOME STREAM
nt Tax-free	Any age	Nil Tax	Nil Tax
Taxable – Element Taxed	Below Preservation Age	At MTR or 20% whichever is lower + Medicare levy	At MTR + Medicare levy
Preservation Age to less than 60	First $215,000 tax-free; balance taxed at 15% + Medicare levy	At MTR + Medicare levy – 15% tax offset
60 and over	Nil Tax	Nil Tax

Account-based (Allocated) Pensions & Annuities – Minimum Payment Factors
Age at 1 July	Minimum Payment Factor – 2020/2021*
Under 65	2%
65-74	2.5%
75-79	3%
80-84	3.5%
85-89	4.5%
90-94	5.5%
95 +	7%

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RMIT Classification: Trusted
SOCIAL SECURITY – AGE PENSION

PENSION AGE ELIGIBILITY
Date of birth	Pension Age Eligibility	Date of Age Pension age change
1 January 1954 to 30 June 1955	66	1-Jul-19
1 July 1955 to 31 December 1956	66 ½	1-Jul-21
1 January 1957 and later	67	1-Jul-23

Assets Test (as of 30th Jan 2021)
Status	Lower Limit (Full Pension)	Partial Pension	Upper Limit (No Pension)
If total assets:	up to	between	from
Single:
Homeowner	$268,000	$268,000- $583,000	$583,000
Non-Homeowner	$482,500	$482,500- $797,500	$797,500
Couple (combined), either partner eligible:
Homeowner	$401,500	$401,500- $863,500	$876,500
Non-homeowner	$616,000	$616,000- $1,091,000	$1,091,000

Reduction factor: $3/fortnight for every $1,000 worth of assets above Lower Limit to Upper Limit

Income Test (fortnightly) (as of 30th Jan 2021)
Status	Full Pension	Partial Pension	No Pension
If total Fortnightly income:	up to	between	from
Single	$178	$178- $2,066.60	$2,066.60
Couple (combined)	$316	$316 – $3,163.20	$3,163.20

Reduction factor: Single – 50 cents for each dollar above $178
Couple (combined) – 50 cents for each dollar above $316

Deeming Rates (as of 30th Jan 2021)
Status	Amount	Deemed Rate	Amount	Deemed Rate
Single	Up to $53,000	.25%	Over $53,000	2.25%
Couple	Up to $88,000	.25%	Over $88,000	2.25%

Basic Pension Rates (fortnightly) (as of 30th Jan 2021)
Single	$860.60
Couple	$648.70 each partner (or $1297.40 if both partners eligible)
+ Pension Supplement (fortnightly) (as of 30th Jan 2021)
Status	Full Pension	Partial Pension
Single	$69.60	$37.40
Couple	$52.50 each partner ($105 combined)	$28.20 each partner ($56.40 combined)
+ Energy Supplement (fortnightly) (as of 30th Jan 2021)
Single: $14.10	Couple (each partner): $10.60	Couple (combined): $21.20

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KEY FINANCIAL FORMULAE
I = interest amount
C = per period cash flow
PV = present value
i = interest rate per annum expressed as a decimal
n = number of days cash is on deposit / 365
FV = future value
Simple interest on a single sum
I = PV x i x n
Future value of a single sum with simple interest
FV = PV (1 + in)
Present value of a single sum with simple interest
PV = FV
(1 + in)
Future value compounding interest of a single sum
FV = PV (1 + i)n
i = interest rate per period expressed as a decimal
n = time in period (years or fraction of a year)
Present value compounding interest of a single amount
PV = FV
(1 + i)n
Present value compounding interest of an annuity formula
PV = C
Future value compounding interest of an annuity formula
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RMIT Classification: Trusted
FV =
RATIO ANALYSIS FORMULAE
total net worth
Equity/net worth/solvency ratio = total assets
liquid assets
Liquidity ratio = total current debts
savings (or cash surplus)
Savings ratio = net income after tax
total monthly loan payments
Debt service ratio = monthly net (after-tax) income
operating profit after tax
Earnings per share (EPS) ratio = no. of ordinary shares
current market price
Price earnings (P/E) ratio = earnings per share
dividends paid
Dividend per share = no. of ordinary shares
dividend per share
Dividend yield = current market price
net tangible assets
Net tangible asset backing = no. of ordinary shares
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9

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