Question 1

What Australian tax years does this calculator support?

Accepted Answer

This calculator supports 2024/25 and 2025/26 for Australian residents using the full tax-free threshold. For 2024/25, the main resident rates are 19%, 32.5%, 37%, and 45% above the $18,200 tax-free threshold. For 2025/26, the middle bands change to 16%, 30%, 37%, and 45%, again above the $18,200 threshold.

Question 2

Does Australia have a tax-free threshold?

Accepted Answer

Yes. Australian residents generally receive a tax-free threshold of $18,200. That means you do not pay ordinary income tax on the first $18,200 of taxable income if you were an Australian resident for tax purposes for the full year and are entitled to the full threshold.

Question 3

Does this calculator include the low income tax offset?

Accepted Answer

Yes. The calculator applies the low income tax offset automatically when taxable income falls within the current LITO bands. That reduces ordinary income tax before Medicare levy, MLS, and study-loan repayments are added.

Question 4

How much is the Medicare levy?

Accepted Answer

The standard Medicare levy is 2% of taxable income. This calculator applies that standard rate in both supported years, models low-income Medicare levy reductions, and lets you enter full or half exemption days. It also supports the Medicare levy surcharge for higher-income households without appropriate private hospital cover, using the published surcharge tiers for each supported year.

Question 5

Does this calculator include the Medicare levy surcharge?

Accepted Answer

Yes. It can calculate the Medicare levy surcharge using the 2024/25 and 2025/26 single and family thresholds, your income for surcharge purposes, spouse MLS income for family cases, dependent-child threshold increases, and whether qualifying private patient hospital cover was held for the full year or only part of it.

Question 6

Does this calculator include HELP or other study-loan repayments?

Accepted Answer

Yes. It can estimate compulsory repayments for HELP, VSL, SFSS, SSL, ABSTUDY SSL, and AASL or TSL style balances. The repayment is based on repayment income, which can include taxable income, reportable fringe benefits, total net investment loss, reportable super contributions, and exempt foreign employment income.

Question 7

Does salary sacrifice into super reduce taxable income?

Accepted Answer

Yes. Salary-sacrifice super contributions are made from pre-tax salary, so they reduce your taxable income and usually lower both your income tax and your Medicare levy. They also reduce your immediate take-home pay because that money goes straight into super instead of your bank account.

Question 8

Can self-employed Australians contribute to super and claim a deduction?

Accepted Answer

Yes. Sole traders and partners can usually make personal super contributions and then claim a tax deduction if they follow the ATO process, including lodging a valid notice of intent where required. That reduces taxable income, but contribution caps and eligibility rules still apply.

Question 9

Do employers have to pay super on top of salary?

Accepted Answer

Generally, yes. From 1 July 2025 the super guarantee rate is 12% for eligible employees. Employer-paid super is separate from take-home pay, so this calculator shows it as an employer benefit rather than money you directly receive as cash wages.

Australia Income Tax Calculator 2024/25 & 2025/26