In Australia, your tax return is calculated by subtracting eligible deductions from your total income to determine your taxable income. This income is then taxed according to progressive rates: 0% for income up to $18,200; 16% for income between $18,201 and $45,000; 30% for income between $45,001 and $135,000; 37% for income between $135,001 and $190,000; and 45% for income over $190,000. Additional levies, such as the Medicare levy (usually 2%), along with any applicable rebates or offsets, also apply. The final tax payable is calculated by adding any additional taxes due and subtracting any pre-paid taxes or withheld amounts, resulting in either a refund if you’ve overpaid or a bill if you owe more.

Yes. The calculator works for a variety of work types including full-time, part-time, casual and contract work.

No, just add any deductions you already know about. If you’re unsure, our Tax Experts can help identify more when you book an appointment.

You might owe money to the ATO if the total tax deducted from your income throughout the year was insufficient to cover your actual tax liability. This situation can arise if your employer withheld too little tax or if you had additional sources of income that weren’t subject to withholding. Incorrect deductions or failure to report all income accurately can also lead to a tax bill. To avoid underpayment, ensure all income is reported correctly and all eligible deductions are claimed. Contact one of our Tax Experts to help ensure you meet your tax obligations.

To maximise your tax deductions in Australia, claim home office expenses if you work from home, including a portion of heating, cooling, and depreciation of office equipment. Deduct study costs related to your current job, such as course fees and textbooks, if they enhance your skills. Keep receipts for all work-related expenses, and electronic copies are acceptable. Deduct expenses incurred in earning your income, like travel and tools, but avoid overstating your claims. Stay organised with your documents and consider consulting a tax professional to ensure optimal deductions and accuracy in your tax return.

If you don’t lodge a tax return when required, you could face several consequences. If you earn above the tax-free threshold of $18,200, you must lodge a return annually. Failure to do so can result in ATO penalties, including a Failure to Lodge (FTL) penalty, which accrues at $330 per 28 days overdue, up to a maximum of five penalty units. If your return remains outstanding, the ATO may issue default assessments based on estimated income, which can lead to higher tax liabilities. In severe cases, prosecution could result in fines or imprisonment for up to 12 months. To avoid these issues, ensure you lodge your returns promptly or seek assistance from a tax professional to address any overdue returns and potential penalties.