Income Tax Calculator - Help and Assumptions
Introduction
This calculator allows you to calculate the tax payable on ordinary income as well as income from income stream investments. It should be noted that the calculator does not include all possible tax offsets that may be available to you. The calculator assumes you are a single individual and does not consider family Medicare rates, including surcharge, and the ability to transfer rebates between spouses.
Do you have any income stream investments?
Income streams are investments that provide a regular income. They include allocated pensions, annuities and superannuation pensions.
Annual income stream payments
This is the amount of income received from your income stream investment on an annual basis.
Annual deductible amount
The deductible amount is the tax-exempt portion of your income stream that is not included as assessable income.
Other taxable income
Other Taxable Income includes any other income you receive less any allowable tax deductions. This may include income from employment or other investments.
Taxable income
Taxable income is assessable income minus any allowable deductions.
Medicare Levy
The Medicare Levy is calculated as a % of taxable income. It is currently 1.5%, however no levy is payable if your taxable income is less than
$18,839 ($31,789
for families). An additional 1% surcharge will be imposed if your family income exceeds
$160,000 ($80,000
for individuals) and you do not have private hospital cover (ie. Medicare Levy will be 2.5%).
If you are eligible for the Senior Australian Tax Offset, you may receive a more generous Medicare Levy threshold. No levy is payable if your taxable income is less than
$30,685 ($44,500
for families).
Note: The Medicare levy estimates are for a single individual, not taking into consideration any possible Medicare family reductions you may be entitled to. If you believe your family income is less than the applicable family threshold, setting the Medicare Levy field to ‘No’ will reduce your Medicare to zero.
Flood Levy
This calculator does not take into account the Flood Levy for the year 2011/12.
You will qualify for this offset if you are over Age or Service Pension age. The tax offset is reduced by 12.5 cents for each dollar of taxable income in excess of the relevant shade out threshold (below):
| Tax offset | Max offset | Shade-out | Rate of Reduction |
|---|---|---|---|
| Single | $2,230 | $30,685 - $48525 | $0.125 per $1.00 |
| Couples (each) | $1,602 | $26,680- $39,496 | $0.125 per $1.00 |
| Couples (separated by illness) | $2,040 | $29,600 - $45,920 | $0.125 per $1.00 |
Note: The offset is calculated for a single individual, not taking into consideration any possible transfer of your spouse's unused Senior Australian Tax Offset.
Low Income Tax Offset
A tax offset of $1,500 is available if your taxable income is $30,000 or less. The tax offset is reduced by 4 cents for each $1 of taxable income above $30,000 and cuts out at $67,500.
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