Australia Income Tax Calculator 2026
Calculate your Australian taxes: Income Tax + Medicare Levy
~$0
0 AUD
Effective rate: 0%
0 AUD
2% of taxable income
0 AUD
Monthly: 0 AUD
Income Distribution
Effective total rate: 0%
+ Medicare Levy 2% on taxable income
Complete Guide to Australian Taxation
The Australian Taxation Office (ATO) is Australia's tax authority, similar to the IRS in the US or HMRC in the UK. An important distinction: the Australian financial year runs from 1 July to 30 June the following year, not January to December like most countries.
Tax Brackets 2024-2025
Australia uses a progressive marginal tax rate system. The major tax reform from July 2024 reduced the second bracket rate from 19% to 16%:
- $0 - $18,2000% (Tax-Free Threshold)
- $18,201 - $45,00016%
- $45,001 - $135,00030%
- $135,001 - $190,00037%
- Over $190,00045%
The Tax-Free Threshold of $18,200 means the first dollars earned are completely tax-free - a significant advantage compared to many countries.
Medicare Levy (2%)
Public Healthcare Funding
- Flat rate of 2% on taxable income
- Funds the Medicare public health system
- Exemption available for low-income earners (< $24,276/year)
- Gradual reduction between $24,276 and $30,345
- No cap - applies to entire taxable income
Medicare Levy Surcharge (MLS)
Penalty Without Private Insurance
If you don't have private health insurance and your income exceeds certain thresholds:
- Income $93,000 - $108,000: +1% additional
- Income $108,001 - $144,000: +1.25% additional
- Income > $144,000: +1.5% additional
- Higher thresholds apply for families
Solution: Take out private "Hospital Cover" insurance to avoid this surcharge.
Superannuation - Compulsory Retirement Savings
11.5% Paid by Employer
- Mandatory employer contribution: 11.5% of salary
- Will increase to 12% from 1 July 2025
- Deposited into your personal Super Fund
- Not deducted from your salary - it's on top
- Accessible from age 60 (preservation age)
- Option for voluntary contributions (concessional and non-concessional)
Concessional contributions cap 2024-25: $30,000/year (tax-deductible)
HECS-HELP - Student Loan Repayment
Progressive Repayment System
If you have a HECS-HELP university debt, repayments are automatically deducted:
- Repayment threshold 2024-25: $54,435
- Below threshold: no mandatory repayment
- Above threshold: repayment of 1% to 10% of income
- Example: income $60,000 = ~2% repayment
- Debt indexed to inflation (no interest charged)
Repayments are withheld through the PAYG (Pay As You Go) system by your employer.
Example Calculation: $100,000 Salary
+ Superannuation of $11,500 paid by employer (on top of salary)
Key Tax Deductions
- Work-related expenses: Uniforms, tools, training costs
- Home office: 67 cents/hour or actual expense method
- Vehicle expenses: 85 cents/km or logbook method
- Self-education: Training related to current employment
- Donations: Gifts to registered DGR charities
- Income protection insurance: Premiums are tax-deductible
France vs Australia Comparison
| Criteria | France | Australia |
|---|---|---|
| Financial year | January - December | July - June |
| Top marginal rate | 45% | 45% |
| Tax-free threshold | ~$12,000 (family quotient) | $18,200 (tax-free) |
| Employee social contributions | ~22% | 2% (Medicare only) |
| Retirement | Mandatory contributions | Super 11.5% (employer) |
| $100,000 AUD gross salary | ~$65,000 AUD net | ~$75,000 AUD net |
| Healthcare | Social Security included | Medicare + optional private |
| Student debt | No comparable system | HECS-HELP progressive |
Net Advantage in Australia
For the same gross salary, an employee in Australia typically keeps 10-15% more in net pay than in France, primarily due to minimal employee social contributions. Retirement (Superannuation) is fully funded by the employer with no impact on take-home pay.
Australia is a popular destination for expats. Compare Australian taxation with neighbouring New Zealand and other English-speaking countries.