The 2013 Federal Budget contained a number of significant taxation changes that will impact individual taxpayers.

Personal Income Tax Rates

Individual income tax rates have remained unchanged and changes that were due to apply from 1 July 2015 have been deferred until 2017-18. At that point the tax free threshold will increase from $18,200 to $19,400.

Tax rates 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, the marginal tax rate for non-residents will be the same as it is for Australian citizens and permanent residents.

Furthermore, proposed legislation to remove the capital gains tax discount for non-residents is expected to come before Parliament shortly.  From 1 July 2016 non-residents will be subject to a non-final withholding tax rate of 10% on the proceeds that arise from the sale of certain taxable Australian properties.