Country GuidesDecember 6, 202512 min read

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

Calculate your Australian income tax with our comprehensive guide covering tax brackets, Medicare Levy, HELP/HECS debt, and tax-saving strategies for 2024-25.

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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.

🧮 Use Our Free Australia Tax Calculator

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Get instant calculations for income tax, Medicare levy, LITO, and take-home pay. Our calculator is updated with 2024-25 ATO rates and thresholds.

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:

  • 0% on income up to $18,200 (tax-free threshold)
  • 19% on income between $18,201 and $45,000
  • 32.5% on income between $45,001 and $120,000
  • 37% on income between $120,001 and $180,000
  • 45% on income over $180,000

Example Calculation

Annual income: $85,000

  • $0 - $18,200: $0 (tax-free)
  • $18,201 - $45,000: $5,092 (19%)
  • $45,001 - $85,000: $13,000 (32.5%)
  • Total income tax: $18,092

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: $85,000 × 2% = $1,700
  • Total tax including Medicare: $19,792

Medicare Levy Exemptions

You may be exempt or pay a reduced levy if:

  • Your income is below the threshold ($26,000 for singles in 2024-25)
  • You have a Medicare Levy Exemption Certificate
  • You're a foreign resident for tax purposes

Medicare Levy Surcharge

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

  • Singles earning over $97,000
  • Families earning over $194,000

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:

  • Maximum $700 for incomes up to $37,500
  • Phases out between $37,501 and $45,000

Senior Australians Tax Offset (SAPTO)

For seniors and pensioners:

  • Up to $2,230 for singles
  • Up to $1,602 for each partner in a couple

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

  • Repayment: $85,000 × 5% = $4,250
  • This is deducted from your tax refund or added to tax owed

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:

  • Employer super: $85,000 × 11.5% = $9,775

    • 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:

    • Super contributions taxed at 15%
    • Can save up to 30% if you're in the 45% bracket

    Personal Contributions

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

    • Government co-contribution (low-income earners)
    • Spouse contribution tax offset

    Tax Deductions for Australians

    Work-Related Expenses

    Deductible expenses include:

    • Work-related travel (not commuting)
    • Home office expenses ($0.67 per hour or actual costs)
    • Professional development and courses
    • Union fees and professional memberships
    • Tools and equipment over $300 (depreciated)
    • Uniforms and protective clothing
    • Phone and internet (work portion)

    Investment Property Deductions

    If you own rental property:

    • Mortgage interest
    • Property management fees
    • Repairs and maintenance
    • Depreciation on building and fixtures
    • Council rates and insurance

    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:

    • 50% discount if held over 12 months
    • No discount for assets held less than 12 months

    Example:

    • Buy shares for $50,000
    • Sell for $80,000 after 18 months
    • Capital gain: $30,000
    • Taxable gain (50% discount): $15,000

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

    Tax Planning Strategies

    1. Maximize Super Contributions

    Strategy: Salary sacrifice to super

    • Reduces taxable income
    • Super taxed at only 15%
    • Builds retirement savings

    Example: Earning $120,000

    • Sacrifice $10,000 to super
    • Tax saving: $10,000 × (37% - 15%) = $2,200

    2. Claim All Deductions

    Keep records of:

    • Work-related expenses
    • Charitable donations
    • Tax agent fees
    • Investment expenses

    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

    • Tax-free threshold of $18,200
    • Taxed on worldwide income
    • Pay Medicare Levy

    Non-Residents

    • No tax-free threshold
    • Taxed only on Australian-source income
    • Don't pay Medicare Levy
    • Different tax rates apply

    Non-resident rates 2024-25:

    • 32.5% on income up to $120,000
    • 37% on income between $120,001 and $180,000
    • 45% on income over $180,000

    Important Dates

    Financial Year: July 1 - June 30

    Key Dates:

    • July 1: Start of financial year
    • July 31: Lodge tax return (if lodging yourself)
    • October 31: Lodge tax return (if using tax agent)
    • June 30: End of financial year

    PAYG Instalments: Quarterly for business and investment income

    Using Our Australia Tax Calculator

    Our calculator provides:

    • Accurate 2024-25 tax calculations
    • Medicare Levy included
    • HELP/HECS repayment estimates
    • Take-home pay calculations
    • Comparison with other income levels
    • Superannuation calculations

    Simply enter your:

    • Annual income
    • HELP debt status
    • Residency status
    • Any tax offsets

    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:

    • ATO website (ato.gov.au)
    • myGov account for tax records
    • ATO app for tracking deductions

    Professional help:

    • Registered tax agents
    • Accountants
    • Financial advisers

    🧮 Calculate Your Australian Tax Liability

    Use Our Free Australia Tax Calculator →

    Our calculator provides:

    • ✅ Income tax calculations with all brackets
    • ✅ Medicare levy and surcharge
    • ✅ LITO and other offsets
    • ✅ HELP/HECS debt repayments
    • ✅ Take-home pay estimates
    • ✅ Visual tax breakdown

    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.