How to Calculate Your Australian Tax: Complete Guide 2025

Quick Summary

Tax Brackets: 0% up to $18,200, then 16%, 30%, 37%, and 45%.
Medicare Levy: 2% of taxable income for most Australians.
Use Calculator: Try our Tax Return Calculator for instant estimates.
Key Tip: Claim all eligible deductions to reduce your tax bill.

Step 1: Understanding Australian Tax Brackets

Australia uses a progressive tax system. Here's how tax brackets work for 2024-2025:

2024-2025 Tax Brackets

0% on income up to $18,200 (tax-free threshold)
16% on income between $18,201 and $45,000
30% on income between $45,001 and $135,000
37% on income between $135,001 and $190,000
45% on income above $190,000

Step 2: Calculate Your Income Tax

Let's calculate tax for someone earning $80,000 per year:

First $18,200: $0 tax
Next $26,800 ($18,201-$45,000): $26,800 × 16% = $4,288
Next $35,000 ($45,001-$80,000): $35,000 × 30% = $10,500
Total income tax: $14,788

Step 3: Add Medicare Levy

Add 2% Medicare levy: $80,000 × 2% = $1,600. Total tax so far: $16,388.

Step 4: Account for HECS-HELP Repayments

If you have a student loan earning $80,000, you'll pay 3%: $80,000 × 3% = $2,400.

Step 5: Calculate Your Take-Home Pay

$80,000 - $16,388 - $2,400 = $61,212 per year (approximately $1,177 per week).

Use Our Free Tax Return Calculator

Want to know your actual tax refund? Use our calculator to factor in deductions and get an accurate estimate.

Try Our Tax Return Calculator

Our Tax Return Calculator helps you estimate how much you'll get back from the ATO. Simply enter your income and deductions.

Calculate My Tax Return

Common Tax Deductions You Can Claim

Reduce your tax bill by claiming eligible expenses:

Work-related expenses: Tools, uniforms, travel, home office costs
Self-education: Courses related to your job
Charitable donations: To registered charities
Investment expenses: Management fees, interest on investment loans
Professional fees: Union fees, membership costs

Tips for First-Time Tax Filers

Keep records of all income and expenses, claim eligible deductions, lodge via myGov, include all income sources, and consult a tax agent for complex situations.

Key Takeaways

Australian tax uses progressive brackets from 0% to 45%.
Add 2% Medicare levy to most tax calculations.
Claim all eligible deductions to reduce your tax liability.
Use our Tax Return Calculator for accurate estimates.

How to Calculate Your Australian Tax

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