How much income tax should you be paying? Compare gross income versus net income.

This calculator helps you:

  • Work out how much income tax you should be paying

  • Calculate gross pay versus net pay - per annum, and per week

  • The 2% Medicare levy

 

Income Tax Brackets - 2023/24 Financial Year

Taxable income

Tax on this income

0 – $18,200

Nil

$18,201 – $45,000

19c for each $1 over $18,200

$45,001 – $120,000

$5,092 plus 32.5c for each $1 over $45,000

$120,001 – $180,000

$29,467 plus 37c for each $1 over $120,000

$180,001 and over

$51,667 plus 45c for each $1 over $180,000

These rates do not include the 2% Medicare Levy, and are for residents of Australia.

2024-25 Stage 3 Tax Cuts Tweak - Less for the Top End

Despite being legislated for a few years now, and promises of no changes under an Albanese Government, on 25 January the Prime Minister announced changes to the stage 3 tax cuts.

Essentially the 37c bracket will be retained but the threshold raised; the tax-free threshold will also stay the same; the 19c bracket will be lowered to 16c; and the 45c bracket will kick-in at $190,000 instead of $200,000 like originally planned.

  • $0 to $18,200: Nil
  • $18,200 to $45,000: 16c
  • $45,000 to $135,000: 30c
  • $135,000 to $190,000: 37c
  • $190,000+: 45c

These calculations don't encompass the Medicare Levy or any surcharges. 

Never mind if brackets were indexed to inflation, the tax-free threshold (left unchanged since 2012-13) would be $22,934, and the top threshold (left unchanged since 2008-9) would be $249,743. Inflation was calculated to year-end 2022.

$50,000 Income

Someone earning $50,000 will be $929 better off than 2023-4, and $802 better off than the original stage 3 plan. 

$95,000 Income

Someone earning the average (mean) full-time salary of $95,000 will be $2,054 better off than 2023-4, and $804 better off than the original stage 3 plan.

$150,000 Income

Someone earning $150,000 in income would be $3,729 better off than 2023-4, but $246 WORSE off than under the original stage 3 plan.

$250,000 Income

About $4,529 better off than 2023-4, much lower than the legislated $9,075 under the original stage 3 plan.

The Prime Minister's Salary - $587,000

Prime Minister Anthony Albanese received a $20,000 pay bump in 2023, taking it to just under $587,000.

For the purpose of rounding, we'll call it $587,000.

  • Under the tweaked stage 3 cuts he'll be better off by $4,529 than 2023-4, but WORSE off by $4,546 than the old stage 3 plan.

Of course, the PM gets other allowances and has free accommodation in Kirribilli House in Sydney, and The Lodge in Canberra with full staff, travel, and a pension when he leaves office.

Medicare Levy threshold raised in-line with inflation

Currently, singles earning below $24,276 do not need to pay any Medicare Levy surcharge.

Only those earning above $30,345 pay the full 2% levy. 

Now those thresholds have been raised by 7.1% - in-line with inflation - to $26,000 and $32,500 respectively.

Under the proposal, someone earning $30,000 would be $172.40 better off under the proposal.

Medicare Levy and Medicare Levy Surcharge Explained

The Medicare Levy, and the Medicare Levy Surcharge (MLS), are often confused - and it’s easy to see why. Most income tax payers, barring those on low incomes, pay the standard 2% Medicare Levy as part of their paycheques.

The MLS on the other hand is a surcharge for those on higher incomes. It is an extra 1%, 1.25% or 1.5% if you earn above a certain income threshold and do not have an appropriate level of private health cover.

2023-24 MLS Brackets

Single Income

Family Income

Tier 1 - 1%

$93,001 - $108,000

$186,001 - $216,000

Tier 2 - 1.25%

$108,001 - $144,000

$216,001 - $288,000

Tier 3 - 1.5%

$144,000 or more

$288,001 or more

There are no particular MLS benefits for pooled family income, except after one child, where the threshold is raised by $1,500 for every dependent after the first.

To avoid this extra tax, you will need to take out an appropriate private health policy. However you will also need to work out what’s more cost effective - a private health policy, or paying extra tax.

Original 2024-25 Income Tax Cuts Explained

The 37% tax bracket was originally legislated to be eliminated and there was one large bracket for a large bulk of those earning an income between $45,000 and $200,000. This has also been reduced to 30% from 32.5%.

  • $0-$18,200 - Nil

  • $18,200 - $45,000 - 19%

  • $45,001 - $200,000 - 30%

  • $200,001 and over - 45%

Someone earning the average (mean) full-time salary of $95,500 would have had $1,262 more in their pocket.

Someone earning an income of $150,000 would have had $3,975 less tax than the 2023-24 financial year.

Someone earning the big bucks at $250,000 would have paid $74,092 in taxes, instead of $83,167 - a saving of $9,075.


Update resultsUpdate
LenderSavings AccountBase Interest Rate Max Interest Rate Total Interest Earned Introductory Term Minimum Amount Maximum Amount Minimum Monthly Deposit Minimum Opening Deposit ATM Access Joint Application TagsFeaturesLinkCompare
4.40% p.a.
5.75% p.a.
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$980
4 months
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$250,000
$0
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0.10% p.a.
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$250,000
$200
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0.05% p.a.
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0.55% p.a.
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$1,139
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0.05% p.a.
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$1,107
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$1,000
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