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Australia Income Tax Calculator

Calculate Your Annual & Monthly Tax

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Individuals use marginal brackets; companies typically use a flat rate.

Enter income after deductions.

Enter genrated revenue .

Enter Cost.

Standard Medicare levy is 2% (residents). Typically not applied to companies.

PAYG withheld or total tax already paid.

Result

Income After Tax
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Total Income Tax
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Medicare levy
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Total Tax ( tax + levy)
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Tax Paid on Your Income
—
Tax Payable
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Result

Annual Cost
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Annual Revenue
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Total Taxable Income
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Total Tax
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Tax Paid On Your Income
Tax Payable
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How Australia Income Tax Is Calculated (Resident & Non-Resident Rules)

Individual vs Non-individual (Company)

Australian income tax is calculated differently for individual taxpayers and companies. Individuals use a marginal tax rate system, while companies are taxed at a flat rate. Below is a breakdown of how each category is taxed according to the latest Australian tax rules.

Individual Tax (Residents)

  • Tax calculated based on Australian marginal tax brackets.
  • Medicare levy (usually 2%) is added unless exempt.
  • Eligible tax offsets like LITO reduce payable tax.
  • Used for personal tax returns, PAYG tax, salary calculations.

Company Tax (Non-individual)

  • Flat tax rate: typically 25% to 30% depending on company type.
  • Medicare levy does not apply.
  • No LITO or personal offsets.
  • Used for business tax, corporate tax reporting, and ASIC compliance.

Common Australian Tax Offsets & How They Affect Your Tax

Tax offsets directly reduce your tax payable, not your taxable income. In the Australian tax system, offsets such as LITO and SAPTO play an important role in lowering the final amount you owe.

Offset Eligible Income Formula How It Applies
LITO (Low Income Tax Offset) Up to approx. $66,667 Max $700; phases out gradually Subtract from tax after bracket calculation
SAPTO Eligible seniors/pensioners Capped offset; reduces as income rises Applied after calculating normal tax
Zone/Overseas Forces Remote areas/eligible service Fixed or variable amounts Added after bracket tax

Step-by-Step Australian Tax Calculation (With Medicare & Offsets)

  1. Start with your taxable income after deductions.
  2. Apply Australian marginal tax brackets (resident/non-resident rules).
  3. For companies, apply flat company tax rate.
  4. Apply eligible tax offsets such as LITO or SAPTO.
  5. Add Medicare levy (if applicable).
  6. Final tax payable = tax after offsets + Medicare levy.
  7. Compare with tax already paid (PAYG) to calculate refund or amount owing.
  8. Calculate take-home pay after tax.

Australian Income Tax Examples

Here are simplified examples showing how Australian income tax, Medicare levy, and offsets impact your net income. These help you understand how the calculator processes your inputs.

Individual (with LITO & Medicare Levy)

Income: $45,000, Medicare levy: 2%

  • Bracket tax: $4,288
  • LITO reduces tax by approx. $700
  • Levy: $900
  • Total payable ≈ $4,488

Company Tax Example

Income: $90,000, Company rate: 25%

  • Company tax: $22,500
  • No Medicare levy
  • Total payable = $22,500

Calculation History