0% on the first $18,200, then 16% on $18,201–$45,000, 30% on $45,001–$135,000, 37% on $135,001–$190,000, and 45% above $190,000. These are the rates after the Stage 3 tax cuts that took effect 1 July 2024. They do not include the 2% Medicare Levy.

The first $18,200 of taxable income is tax-free for Australian residents. With the Low Income Tax Offset (LITO) factored in, you effectively pay no income tax until your income exceeds approximately $22,575 to $24,000 in 2025-26, depending on your individual circumstances.

Most Australian residents pay the Medicare Levy at 2% of their taxable income. It funds Australia's public health system. Low-income earners may pay a reduced amount or nothing if their income is below the threshold (check the ATO's current figures, which are indexed annually). A Medicare Levy Surcharge of 1%–1.5% applies on top for higher earners without private hospital cover.

Your marginal rate is the rate on your last dollar of income. Your effective rate is total tax divided by total income — it is always lower than your marginal rate because the lower brackets are taxed at lower rates. Someone earning $85,000 has a marginal rate of 30% but an effective rate of around 20-21%.

HECS-HELP repayments are separate from income tax. From 1 July 2025, a new marginal repayment system applies — you only repay on income above the $67,000 threshold (up from $54,435 previously), not on your total income. Between $67,001 and $125,000 you repay 15 cents per dollar above $67,000. Above $125,001 the rate increases further. This change means most borrowers pay significantly less each year than under the old system.

Employer super contributions (currently 12%) come on top of your salary and are taxed at 15% inside the fund — not at your marginal rate. This calculator works on salary only. Your take-home pay does not include super because it goes directly to your fund.

LITO reduces your tax liability by up to $700 if you earn under $37,500. It phases out gradually and disappears entirely at $66,667. It is applied automatically — you do not need to claim it.

Yes. Allowable deductions include work-related expenses (tools, uniforms, home office), self-education costs, income protection insurance premiums, and investment-related expenses. Salary sacrifice to superannuation also reduces your taxable income. You cannot deduct personal or private expenses.

Your employer withholds tax based on an assumed full-year income for each pay period. If your income fluctuates, or you work part of the year, the final tax owed will differ. The actual amount is calculated when you lodge your tax return and any difference is refunded or becomes a debt.

Accurate income tax calculations start with accurate income figures. If a client's transactions are miscoded in their accounting software, their taxable income is wrong at year-end. Ezyiah categorises every transaction from bank statements before the data reaches your software, so the income figure the accountant works from is correct.