Our salary calculator is a simple tax tool used in calculating the pay or net income 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. The individual can then prepare their income tax return, which is the yearly declaration made by individuals allowing tax offices to calculate the amount of tax you are going to pay. Our salary calculator is always up to date with the latest weekly, fortnightly and monthly tax tables from the Australia Tax Office.
A tax refund is the amount refunded to you if the amount you paid for the financial year is more than the amount you should have paid.
This is the notice explaining how your tax is calculated whether tax refund or debt. It is usually provided by the tax office.
Weekly, fortnightly or monthly withholding tax is deducted from your salary each pay period by your employer in accordance with the applicable tax rates. In the concept of PAYG, you will contribute each pay period to the tax liability instead of paying a huge amount after the financial year ends. The amount deducted from your salary generally varies but it follows that if you have more earnings more tax is withheld from your salary. This is referred to as the progressive tax system.
The amount of tax withheld from your pay will vary but generally the more you earn the more tax is withheld. This is what is called the progressive tax system.
There is a certain amount of your income that will be exempted from tax. This is what is referred to as Tax Free Threshold. The threshold for financial year 2014-15 is $18,200 and above from the $6,000 threshold of the previous year.