Removal of the Temporary Budget Repair Levy from the 2017/18 income year

The 2% Temporary Budget Repair Levy(or ‘TBRL’), which has applied to individuals with a taxable income exceeding $180,000 since1July 2014,is repealed with effect from 1 July 2017.

Up until 30 June 2017, including the TBRL and the Medicare Levy, individuals earning more than $180,000 faced a marginal tax rate of 49%.

With the benefit of the removal of the 2% TBRL, from 1July2017,individuals with a taxable income exceeding $180,000 face a marginal tax rate of 47% (including the Medicare Levy).

Editor: Don’t forget to add another 1.5% for the Medicare Levy Surcharge for certain individuals that don’t have Private Health Insurance.