Online Calculators since 2009
The Australia Tax Calculator is updated with the 2020/21 Personal Income Tax Rates and Thresholds. Enter your income to calculate your tax and salary deductions, see below for further instructions. If you are looking for a new job in Australia or comparing salaries across different jobs, you can use the Australia Salary Comparison Calculator which allow you to compare upto 6 salaries side by side, it's a good calculator for comparing salaries in Australia. We also provide a Capital Gains Tax Calcultor which uses the three methods of calculating capital gainas published by the ATO.
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The salary calculator for income tax deductions based on the latest Australian tax rates for 2020/2021. The Australian Salary Calculator includes income tax deductions, Medicare Deductions HEPS HELP calculations and age related tax allowances.
Did you know that the Medicare Levy increased from 1.5% to 2% for the 2014/15 tax year and a Budget Repair Levy of 2% has been introduced on taxable incomes in excess of $180,000.
Calculating income tax in Australia is easy with the Australia Tax Calculator and Australia Salary Comparison Calculator, simply follow the steps below:
If you are new to Australian tax or an expat looking at working / relocating to Australia, it is worth getting a good understanding of the structure of Australia's expense framework. The Commonwealth is Australia's Federal (or national) level government which imposes taxation on all Australian taxpayers. Like most countries, the Australian tax system is a mix of direct and indirect taxes levied by both the Commonwealth and State governments. Taxation being applied depending on the type of tax.
The Federal Government of Australia has jurisdiction to tax Australian residents on income from worldwide sources and non-residents on only Australian sourced income.
Australian legislation contains specific rules relating to residency to determine whether an individual or company is a resident for tax purposes.
Australia also has a system for determining whether an income amount is sourced in Australia or another country. Generally, income is sourced in the place of employment or the fixed place of business.
International transactions are often sourced according to where the relevant contract is made, although there are often variations to these broad rules depending on the circumstances.
The risk associated with the residence and source rules is that one amount of income may be taxed in two different countries.
To avoid this, Australia has entered into many double tax agreements with other countries which will prevail over domestic law to ensure that taxation is only imposed once on any given amount of income.
In addition, Australia also operates a system of foreign tax credits under which tax credits are given to Australian residents who pay foreign tax on foreign income.
These credits are then used to offset against Australian tax paid on the same amount, again ensuring income is only taxed once.
Taxable income is generally an entity's total assessable income less any allowable deductions. If a loss is incurred it may be carried forward to future years provided the loss carry forward tests are satisfied.
Assessable income includes items such as salaries, wages, and income from business, interest, rent and dividends.
Deductions generally include expenses that have been incurred in the course of gaining or producing income, in addition to a number of specific deductions allowable under legislation.
Deductions are not allowed for personal expenses or those of a capital nature. However, if certain conditions are met, it is possible for companies and individuals to set off losses against other types of income.
CGT is imposed on gains realised from the sale of assets, with special rules applicable to the valuation of capital gains.
For taxation purposes, the assets subject to CGT are very broad and include both tangible and intangible assets.
Certain assets such as motor vehicles, personal use assets and one's main residence are subject to exemptions, while foreign residents are subject to capital gains on only a limited range of assets, such as real property.
Capital gains are included in taxpayers' assessable income and therefore taxed at each taxpayer's applicable income tax rate.
If the capital asset is held for longer than 12 months, Australian residents are entitled 50% discount for taxation purposes. The CGT rules have recently been amended so that non-residents can no longer access the 50% discount. Any capital loss incurred can be offset only against capital gains.