Income tax on rent, worked example, in Australia

Taxation Researcher | July 18, 2021

Non-resident couple´s rental income1      
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less Expenses 3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax4
Up to AUD 87,000 35.50% 4,388 17,550 30,000
AUD87,000 - AUD 180,000 37% - - 5,806
Over AUD 180,000 45% - - -
Annual Income Tax Due 4,388 17,550 35,806
Tax Due as % of Gross Income 24.38% 24.38% 24.87%
Thanks to:
Deloitte

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 1.30 AUD

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4 Rental income earned by nonresident individuals is taxed at progressive rates.

  

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