Salary Calculator Australia

Our salary calculator is a simple tax tool used in calculating the pay you will receive after deducting the PAYG tax contributions from your salary.

Each pay period, your employer will withhold tax from your gross salary and will send this amount to the tax office. When the financial year ends, you will receive a Notice of Assessment from your employer showing your gross income as well as the tax withheld each pay period.

Our salary calculator is always up to date with the latest tax law so you can be confident in the calculations and results.

Tax Rates

Income tax in Australia is imposed at progressive rates for income tax returns. The lowest income bracket is 0% tax otherwise known as tax-free rate for those with low monthly incomes. The current threshold rate for this tax bracket is $18,200. For incomes reaching more than $180,000 will have progressive tax rates up to 45%. You can refer to the following table for income brackets at present.

Taxable Income Tax on Income (2014 - 2015) Tax Rate
$0 – $18,200 Nil 0%
$18,201 – $37,000 19¢ for each $1 over $18,200 19%
$37,001 – $80,000 $3,572 plus 32.5¢ for each $1 over $37,000 32.5%
$80,001 – $180,000 $17,547 plus 37¢ for each $1 over $80,000 37%
Over $180,000 $54,547 plus 45¢ for each $1 over $180,000 45

Progressive Income Tax

It is important to note that the income brackets have progressive nature. This means that only the figures between each bracket are taxed according to the rate provided. For instance, there will be $1,292 tax if the income is $25,000, which is calculated by deducting 18,200 from 25,000 and multiplied by 19% rate.

Low Income Tax Offset

There is a tax rebate called Low Income Tax Offset (LITO) provided for those with low incomes. From 01/07/2012 the full low income tax offset is $445. It reduces at a rate of 1.5¢ for every dollar over $37,000 and it becomes nil at an income of $66,6667. Currently 70% of the full benefit is deducted from regular salaries for LITO and the remaining 30% is paid after lodgement of income tax return.

Tax Refund

A tax refund occurs when taxes are withheld from your salary or pay and at the end of the financial year is more than what an individual owes to the tax office for personal income tax. Essentially, this means that the government will withhold earnings from a person's income throughout the year as a means to fund national and local projects, with individuals and businesses being able to reclaim these detained earnings at the end of the financial year through a tax refund. This can be a common occurrence with many people needing to reclaim their tax refunds when it comes to submitting their taxation claim forms.

Tax refunds can become quite a complex issue for those individuals who may have varied income and employment circumstances such as self-employment income or interest income. As a result, it can be advisable for people to use a taxation consultant or tax agent when completing their tax refunds to ensure that they receive claim all their entitled claims and benefits.

There are various elements and factors to be considered when completing a tax refund including all details relating to expenses, depreciation, deductions and tax rebates. In greater detail this covers anything from work-related expenses, investment losses, charity donations, superannuation, tax agent fees, rental expenses, medical expenses, travel expenses and education costs.