Income Tax Calculator Australia
Use our Income Tax Calculator Australia to estimate your effective tax rate based on the latest Australian income tax rates and brackets. Better plan your finances.
Income Tax Rate Australia
Individual income tax in Australia applies to both residents and non-residents.
If you are a resident, you must pay tax on all your income worldwide, whether it's from Australian or foreign sources at the following AU income tax rates;
Taxable base (from) | Taxable base (to) | Tax rate |
0 | 18,200 | 0% |
18,201 | 45,000 | 19% |
45,001 | 120,000 | 32.5% |
120,001 | 180,000 | 37% |
180,001 | Remaining | 45% |
On the other hand, non-residents only pay tax on income sourced in Australia, excluding interest, royalties, and dividends, which are typically subject to withholding tax.
Non-residents pay taxes at the following AUS income tax rates;
Taxable base (from) | Taxable base (to) | Tax rate |
0 | 120,000 | 32.5% |
120,001 | 180,000 | 37% |
180,001 | Remaining | 45% |

Tax Law & Fines in Australia
In Australia, the Australian Taxation Office (ATO) oversees the tax system and can impose fines and penalties for not following tax laws.
However, penalties can vary depending on the type of non-compliance. The ATO aims to use penalties not just to punish, but to encourage taxpayers to comply with their obligations.
Major areas of potential penalties include:
- Late filing of tax returns results in initial fines of a few hundred to thousands of dollars depending on circumstances, with increasing penalties for continued late filings.
- Inaccurate tax returns or unreported income lead to penalties ranging from 25% to 75% of the additional tax owed. Serious evasion may prompt criminal charges.
- Tax evasion through fraudulent actions to illegally reduce taxes can trigger penalties between 75% to 90% of evaded tax, plus potential jail time.
- Unpaid taxes are charged interest by the ATO at rates tied to the official Australian cash rate. Additional general interest charges may apply on overdue amounts.
- Tax audits by the ATO can unveil non-compliance leading to penalties. The ATO can request financial records, ask questions, and otherwise investigate taxpayers.
Facts About The Tax System in Australia
- Australia does not have inheritance tax or gift tax at the federal level.
- The Australian Taxation Office (ATO) collects taxes and administers the tax system. The ATO uses data matching and analytics to catch tax evasion.
- Tax evasion in Australia is estimated to be around $8.7 billion per year as of 2019. Common methods of evasion are not declaring cash income and over-claiming deductions.
- Australia has double taxation agreements with over 40 countries to prevent double taxation of income.
- Around 37% of total tax revenue in Australia comes from individual income tax. The next largest source is company tax at 18%.
- Mining companies pay substantial taxes and royalties to Australian federal and state governments. In 2019-20, mining tax and royalties totaled $38 billion.
- Fringe benefits tax (FBT) is a federal tax paid by employers on non-cash benefits given to employees, such as cars, stock options, school fees.
Frequently Asked Questions
Got a question? We've got answers.
Progressive income tax uses graduated, increasing tax rates that apply to different income brackets. Here is a hypothetical example. Income tax in a random country is divided into brackets, like 0-$10k, $10k-40k, etc. Each bracket has a tax rate that increases as income rises. For example: 10% for 0-$10k and 15% for $10k-$40k and 25% for $40k-$85k. You calculate progressive income tax by applying the rate for each bracket only to the income in that bracket. So for $60k income, the progressive tax income will be 10% of first $10k and 15% of next $30k and 25% of remaining $20k. This will result in a total tax of $10,500.
Income tax is a tax levied on individuals and business entities based on their income or profits. It is imposed on taxable income, which is calculated as gross income minus any deductions and exemptions allowed under the tax code. For individuals, income tax typically applies to wages, salaries, tips, investment income like dividends and interest, business/self-employment income, capital gains, etc.
Social security contribution refers to the taxes paid into the social security system by employees, employers, and self-employed individuals. It’s used to fund several important social insurance programs such as retirement benefits, disability benefits, unemployment benefits, survivor benefits, medicare health insurance, etc.
Self-employed income refers to the earnings and revenues generated by individuals who are self-employed, operate their own business or have side projects. Some common examples of self-employed income include income from sales of products or services, consulting or freelance income, commissions, profit distributions, etc.
Self-employed expense refers to costs and expenditures incurred by individuals who are self-employed, owns their own business, or has a side project. Some common examples of self-employed expenses include equipment, supplies, insurance, professional fees, repairs and much more.
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