Australia Home Pacific Australia Tax Pages Rental Income Tax Australia More AU × Australia Financial Overview Overview House Prices Market in Depth Rental Yields Income Tax et al Tax Example Taxes if Resident Buying Guide Landlord and Tenant Property Inheritance Country Statistics Property Investments Where to Buy Survey of Australia Paddington Queensland South Australia Sydney Victoria Western Australia Key Contacts Accountants Lawyers Real Estate Agents Mortgages Income tax on rent, worked example, in Australia November 09, 2016 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 32.50% 4,388 17,550 21,750 AUD87,000 - AUD 180,000 37% - - 15,198 Over AUD 180,000 45% - - - Annual Income Tax Due 4,388 17,550 36,948 Tax Due as % of Gross Income 24.38% 24.38% 25.66% Thanks to: 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. Comments Be the first to comment on this article! Login or Register to submit a comment! In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.