Income Tax Calculator Australia

Common deductions: work-from-home (67c per hour fixed-rate method, or actual costs), work uniforms (must be specific to your job — a suit doesn't count), self-education directly related to your current job, tools and equipment, professional memberships and union dues, travel between work sites, and donations of $2+ to Deductible Gift Recipients (DGRs). Keep receipts — the ATO can audit up to 5 years back.

Salary sacrificing into super means your employer pays an agreed amount of your pre-tax salary directly into super instead of paying it to you. That amount is then taxed at the concessional super rate of 15% — not your marginal rate (which could be 30%, 37%, or 45%). For someone in the 37% bracket, every $1,000 sacrificed saves $220 in tax. The concessional cap is $30,000/year (2025-26) including your employer's compulsory 11.5%.

Negative gearing is when your investment property's deductible expenses (interest, depreciation, maintenance) exceed its rental income. The net loss can be deducted against your salary income, reducing your overall tax. Combined with the 50% CGT discount on long-held assets, this is why Australian property investment is so tax-efficient. This calculator's investment deduction field accepts the net loss figure.

LITO gives up to $700 tax offset for taxable incomes under $37,500. It tapers down to $325 at $45,000, then to zero by $66,667. It's applied automatically when you do your tax return — and our salary calculator includes it. This tax calculator focuses on the income tax computation; LITO works on top of that, so subtract it from your total if you're under $66,667.

Medicare Levy Surcharge (MLS) is an extra 1-1.5% on top of the standard 2% Medicare levy. It applies if you earn over $97,000 (single) / $194,000 (family) AND don't have private hospital cover. Many higher earners take out basic hospital insurance just to avoid MLS — it's usually cheaper than the surcharge. Not modeled in this calculator.

No — only investment property loan interest is deductible. Owner-occupier (PPOR) loan interest is NOT tax-deductible in Australia (unlike the US). However, if you have a 'redraw' or 'offset' against an investment loan that came from PPOR equity, the deductibility gets complex — talk to an accountant.

Capital gains are added to your other income and taxed at marginal rates — but if you've held the asset for over 12 months, you get a 50% CGT discount (individuals only). So gains on shares held 2+ years are effectively taxed at half your marginal rate. Your main residence is generally CGT-exempt. This calculator doesn't separately model CGT — add any taxable capital gain to your gross income.

The salary calculator answers 'what's my take-home pay?' — it auto-applies PAYG, Medicare 2%, HECS, and shows weekly/fortnightly/monthly net pay. This tax calculator focuses on the income tax computation itself — letting you input deductions to see how they reduce your taxable income and tax owed. Use salary for budgeting; use tax for optimization decisions.