The government announced in the 2014-15 budget that it would impose a temporary budget repair levy of 2% on that part of the taxable income of an individual that exceeds $180,000. The levy commences 1 July 2014 and will be imposed for three years. It applies to both residents and non-residents. There are consequential changes for rates and taxes that reference the top rate of tax. As a result the top marginal rate has increased from 45% to 47%. However the levy is imposed separately to the marginal rates of income tax and cannot be reduced by non-refundable tax offsets.
The calculation of basic income tax to include TBRL:
[Basic income tax] – [Tax offsets] + [TBRL] – [Foreign income tax offset]