Australia Tax Calculator 2024-25: Complete Guide to Australian Income Tax

Understanding Australian income tax can be complex with progressive tax brackets, the Medicare Levy, and various offsets. This comprehensive guide will help you calculate your tax liability and maximize your tax savings for the 2024-25 financial year.

Australian Tax Brackets 2024-25

The Australian Taxation Office (ATO) uses a progressive tax system with the following brackets for residents:

Tax Rates for 2024-25:

Example Calculation

Annual income: $85,000

Medicare Levy

In addition to income tax, most Australian residents pay the Medicare Levy of **2%** of taxable income.

For $85,000 income:

Medicare Levy Exemptions

You may be exempt or pay a reduced levy if:

Medicare Levy Surcharge

High-income earners without private health insurance may pay an additional **1-1.5%** surcharge:

**Tip:** Private health insurance can help you avoid this surcharge.

Tax Offsets and Credits

Low and Middle Income Tax Offset (LMITO)

**Note:** LMITO ended on June 30, 2022, but was replaced by:

Low Income Tax Offset (LITO)

Reduces tax for low-income earners:

Senior Australians Tax Offset (SAPTO)

For seniors and pensioners:

HELP/HECS Debt Repayments

If you have a Higher Education Loan Program (HELP) or HECS debt, you'll make compulsory repayments once your income exceeds the threshold.

2024-25 Repayment Rates:

| Income Range | Repayment Rate |

|--------------|----------------|

| Below $51,550 | 0% |

| $51,550 - $59,518 | 1% |

| $59,519 - $63,089 | 2% |

| $63,090 - $66,875 | 2.5% |

| $66,876 - $70,888 | 3% |

| $70,889 - $75,140 | 3.5% |

| $75,141 - $79,649 | 4% |

| $79,650 - $84,429 | 4.5% |

| $84,430 - $89,494 | 5% |

| $89,495 - $94,865 | 5.5% |

| $94,866 - $100,557 | 6% |

| $100,558 - $106,590 | 6.5% |

| $106,591 - $112,985 | 7% |

| $112,986 - $119,764 | 7.5% |

| $119,765 - $126,950 | 8% |

| $126,951 - $134,568 | 8.5% |

| $134,569 - $142,642 | 9% |

| $142,643 - $151,200 | 9.5% |

| $151,201 and above | 10% |

**Example:** Earning $85,000 with HELP debt

Superannuation (Retirement Savings)

Employer Contributions

Employers must contribute **11.5%** of your ordinary time earnings to super (increasing to 12% by July 2025).

For $85,000 salary:

Salary Sacrifice

You can make additional pre-tax contributions (salary sacrifice) up to the concessional cap of **$30,000** per year (including employer contributions).

Tax benefit:

Personal Contributions

After-tax contributions up to **$120,000** per year may be eligible for:

Tax Deductions for Australians

Work-Related Expenses

Deductible expenses include:

Investment Property Deductions

If you own rental property:

**Negative gearing:** Rental losses can offset other income.

Charitable Donations

Donations over $2 to registered charities are tax-deductible.

Capital Gains Tax (CGT)

When you sell assets like shares or property:

CGT Discount:

Example:

**Primary residence exemption:** Your main home is usually CGT-free.

Tax Planning Strategies

1. Maximize Super Contributions

**Strategy:** Salary sacrifice to super

**Example:** Earning $120,000

2. Claim All Deductions

Keep records of:

**Tip:** Use the ATO's myDeductions tool in the ATO app.

3. Time Your Income

If possible, defer income to the next financial year or bring forward deductions to reduce current year tax.

4. Spouse Contributions

If your spouse earns less than $40,000, contributing to their super can earn you a tax offset of up to $540.

5. Private Health Insurance

Avoid Medicare Levy Surcharge by maintaining appropriate private health cover if you're a high-income earner.

Resident vs Non-Resident Tax

Residents

Non-Residents

Non-resident rates 2024-25:

Important Dates

**Financial Year:** July 1 - June 30

Key Dates:

**PAYG Instalments:** Quarterly for business and investment income

Using Our Australia Tax Calculator

Our calculator provides:

Simply enter your:

Common Mistakes to Avoid

1. **Not claiming all deductions:** Keep receipts and records

2. **Forgetting HELP debt:** This affects your take-home pay

3. **Incorrect residency status:** Huge tax implications

4. **Missing super contributions:** Check your employer is paying correctly

5. **Not updating tax file number:** Ensure employers have correct details

6. **Claiming ineligible deductions:** Only claim genuine work-related expenses

State-Specific Considerations

While income tax is federal, states have their own taxes:

**Payroll Tax:** Paid by employers (varies by state)

**Stamp Duty:** On property purchases (varies significantly)

**Land Tax:** Annual tax on property value (varies by state)

Getting Help

Free resources:

Professional help:

Conclusion

Understanding Australian income tax helps you maximize your take-home pay and plan for the future. With the tax-free threshold, Medicare Levy, and various deductions and offsets, calculating your exact tax liability requires careful consideration of your individual circumstances.

Use our Australia tax calculator to get an accurate estimate of your tax for 2024-25, and consult with a registered tax agent for personalized advice. Remember to keep good records throughout the year to maximize your deductions and minimize your tax bill.

**Disclaimer:** This guide provides general information only. Tax laws change regularly, and individual circumstances vary. Always consult with a qualified tax professional for advice specific to your situation.