In Australia, Income tax is one of the vital source of revenue for Federal Government, collected on behalf of ATO. It is levied at progressive rates, depending on income, residency status and government debts.

In Australia, Income tax is one of the vital source of revenue for Federal Government, collected on behalf of ATO. It is levied at progressive rates, depending on income, residency status and government debts.

Australian residents for tax purpose are exempted from tax if annual gross income is less than $18200. For income of more than $18200, tax is levied at different rates.

Resident Tax Rates 2021 - 2022

Taxable Income	Tax
$0 – $18,200	NIL
$18,201– $45,000	19c for each $1 over $18,200
$45,001 - $120,000	$5092 plus 32.5c for each $1 over $45,000
$120,001 - $180,000	$29,467 plus 37c for each $1 over $120,000
More than $180,000	$51,667 plus 45c for every $1 over $180,000

Unlike Department of Home Affairs, a person can be ,
Resident for tax purpose in ATO records even if they don’t have Australian permanent visa or Australian Passport, OR
Non-resident for tax purpose even if they have visa to visit Australia.
Usually, a person with less than 6 months visa is considered as Non-Resident for tax purpose.You can Check your eligibility here.

Working holiday makers or Backpackers are people who are holder of visa subclass 417 or 462 visa.For Backpackers, first $45000 is taxed at 15% and any amount earned after that is taxed at resident tax rates.
Check your visa status here.
NOTE: Non-residents and Backpackers are not eligible for any Tax free threshold and Tax Offsets.

Low Income Tax Offset (LITO) is available to residents for tax purpose if taxable income is less than $66,667. Resident Tax Payers are eligible for maximum of $700 LITO if taxable income is less than $37,500.

In addition to LITO, Low and Middle Income Tax Offset (LAMITO) is available to residents for tax purpose if taxable income is less than $126,000.As announced in the 2022–23 federal Budget, Resident Tax Payers are eligible maximum of $1500 LAMITO.
For more information on Tax offsets, visit ATO.

Superannuation is the certain amount of money paid by your employer in your superannuation account in addition to your salary. Current standard rate for superannuation is 9.5% of your taxable income. However, some employers pay more than 9.5%. This amount is accessible only at the time of your retirement or if you are leaving country permanently.
From July 2021, superannuation is guaranteed to increase by 0.5% every financial year until it reaches 12% in July 2021.
Some companies offer a salary package where 9.5% of superannuation is included in it. For this scenario, you need to check “Incudes Super” in options when using our Calculator
For more informaton, visit ATO.

Medicare is Australian health support program which allows Australian residents to access free medical facilities.Every taxpayer who is enrolled in this program pays 2% of taxable income to support Medicare scheme.
For singles earning more than $90000 and couples earning more than $180000, there's an additional Medicare Levy Surcharge (MLS) of upto 2%.

From 1st July 2019, all study and training loans including HELP, VSL, SFSS, SSL, ABSTUDY SSL, TSL have to be paid back if taxable income is more than $46,620.
Below is the Loan repayment threshold table for 2019 - 2020 tax year.

Taxable Income	Repayment Rate (%)
Below $47,014	Nil
$47,014 – $54,282	1.0%
$54,283 – $57,538	2.0%
$57,539 – $60,991	2.5%
$60,992 – $64,651	3.0%
$64,652 – $68,529	3.5%
$68,530 – $72,641	4.0%
$72,642 – $77,001	4.5%
$77,002 – $81,620	5.0%
$81,621 – $86,518	5.5%
$86,519 – $91,709	6.0%
$91,710 – $97,212	6.5%
$97,213 – $103,045	7.0%
$103,046 – $109,227	7.5%
$109,228 – $115,781	8.0%
$115,782 – $122,728	8.5%
$122,729 – $130,092	9.0%
$130,093 – $137,897	9.5%
$137,898 and above	10%