Calculating your Tax
Individual Income Tax Rates
When calculating your tax the place to start is to understand how the tax brackets work for your individual circumstance. You can explore the individual income tax rates set by the ATO or check out the table below. Remember this will also depend on the income year you select and your residency status for income tax purposes during that income year. The below does not include your medicare levy or, if applicable, your Medicare Levy surcharge.
Taxable income Tax on this income
0 – $18,200 Nil
$18,201 – $45,000 19 cents for each $1 over $18,200
$45,001 – $120,000 $5,092 plus 32.5 cents for each $1 over $45,000
$120,001 – $180,000 $29,467 plus 37 cents for each $1 over $120,000
$180,001 and over $51,667 plus 45 cents for each $1 over $180,000
ATO Tax Calculator
If you would like a quick guide as to the amount of tax you may pay the ATO has a simple ATO Tax Calculator to help you.
You’ll need to have the following information close by to ensure that you get this right.
Total gross income payments you received.
Total amount of tax that was withheld.
Total amount of deductions to claim.
Your residency status for taxation purposes.
Details of your tax credits and any tax offsets you are entitled to claim.
You may need additional information, depending on your circumstances and what you choose to calculate.
However, there are some conditions where you can't use this calculator
You will not be able to use this calculator if you:
Had a spouse for only part of the year
Had an employment termination payment
Had a lump sum payment in arrears
Had a lump sum payment because you retired or finished working in a job
Were under 18 years and had unearned income such as interest, dividends or other investment income
Received credit for any tax paid by a trustee
Had exempt foreign employment income
Had an amount released under the First home super saver scheme
Had income that was subject to averaging
Had superannuation concessional contributions more than your concessional contributions cap
Tax deducted from your pay
If you want to know how much your employer (or other payer) is required to withhold from payments to you use the ATO Tax withheld calculator to give you a guide.
For more information simply ask me at paul@congdonfuzi.com.au