The 2013 Federal Budget contained a number of significant taxation changes that will impact individual taxpayers.
Personal Income Tax Rates
Individual income tax rates remain unchanged. The expected tax cuts due to apply from 1 July 2015 have been deferred until 2017-18. At that point, instead of lower tax rates, the tax-free threshold will increase from $18,200 to $19,400.
Tax rates and Capital Gains Tax for non-residents
For the 2013-14 income year, non-residents will pay a flat rate of 32.5% on all taxable income up to $80,000. For taxable income exceeding $80,000, non-residents will be taxed at the same rate and threshold that applies to Australian citizens and permanent residents.
The proposed legislation to remove the capital gains tax discount of 50% for non-residents is expected to be introduced into Parliament shortly.
In addition, from 1 July 2016, a non-final withholding tax rate of 10% on the proceeds arising from the sale of certain taxable Australian properties will be imposed. This means where a non-resident disposed an asset, the purchaser will need to withhold 10% of the proceeds to remit it to the Australian Tax Office.