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AU Tax 2024

iCalculator™ AU: Australia Tax Calculators

Welcome to iCalculator™ AU, your comprehensive suite of free tax calculators for Australia. iCalculator™ has provided free tax calculators for Australia since 2014. Since those early days we have extended our resources for Australia to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Australia Tax Calculator and salary calculators within our Australia tax section are based on the latest tax rates published by the Tax Administration in Australia. In this dedicated Tax Portal for Australia you can access:

Australia Tax Calculator 2024/25

The Australia Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Australia. This includes calculations for

  1. Employees in Australia to calculate their annual salary after tax.
  2. Employers to calculate their cost of employment for their employees in Australia.
Australia Tax Calculator 2024
*** Please enter your employment income ***
Advanced Australia Salary Calculator 2024

Taxation in Australia

If you are new to Australian tax or an expat looking at working / relocating to Australia, it is worth getting a good understanding of the structure of Australia's expense framework. The Commonwealth is Australia’s Federal (or national) level government which imposes taxation on all Australian taxpayers. Like most countries, the Australian tax system is a mix of direct and indirect taxes levied by both the Commonwealth and State governments. Taxation being applied depending on the type of tax.

Commonwealth taxes

The Federal Government of Australia has jurisdiction to tax Australian residents on income from worldwide sources and non-residents on only Australian sourced income.

Australian legislation contains specific rules relating to residency to determine whether an individual or company is a resident for tax purposes.

Australia also has a system for determining whether an income amount is sourced in Australia or another country. Generally, income is sourced in the place of employment or the fixed place of business.

International transactions are often sourced according to where the relevant contract is made, although there are often variations to these broad rules depending on the circumstances.

The risk associated with the residence and source rules is that one amount of income may be taxed in two different countries.

To avoid this, Australia has entered into many double tax agreements with other countries which will prevail over domestic law to ensure that taxation is only imposed once on any given amount of income.

In addition, Australia also operates a system of foreign tax credits under which tax credits are given to Australian residents who pay foreign tax on foreign income.

These credits are then used to offset against Australian tax paid on the same amount, again ensuring income is only taxed once.

Taxes on income

Taxable income is generally an entity’s total assessable income less any allowable deductions. If a loss is incurred it may be carried forward to future years provided the loss carry forward tests are satisfied.

Assessable income includes items such as salaries, wages, and income from business, interest, rent and dividends.

Deductions generally include expenses that have been incurred in the course of gaining or producing income, in addition to a number of specific deductions allowable under legislation.

Deductions are not allowed for personal expenses or those of a capital nature. However, if certain conditions are met, it is possible for companies and individuals to set off losses against other types of income.

Taxes on capital gains (Capital Gains Tax (CGT)

CGT is imposed on gains realised from the sale of assets, with special rules applicable to the valuation of capital gains.

For taxation purposes, the assets subject to CGT are very broad and include both tangible and intangible assets.

Certain assets such as motor vehicles, personal use assets and one’s main residence are subject to exemptions, while foreign residents are subject to capital gains on only a limited range of assets, such as real property.

Capital gains are included in taxpayers’ assessable income and therefore taxed at each taxpayer’s applicable income tax rate.

If the capital asset is held for longer than 12 months, Australian residents are entitled 50% discount for taxation purposes. The CGT rules have recently been amended so that non-residents can no longer access the 50% discount. Any capital loss incurred can be offset only against capital gains.