About Tax Calculator

If you are unsure how to calculate Australian tax-related figures, you can use our various tax calculators, including the individual tax return calculator, sole trader tax return calculator, GST calculator, and capital gains tax calculator. You may not be familiar with the meanings of some terms of these calculators, and we will explain them one by one below.

Total Income/Total TFN Income

This refers to your total personal income for the year , including your salary, bank interest, investment gains, and so on. Please note that if you have business income, such as being self-employed and earning profits, or if you are a driver for Uber/Didi, individual tax return calculator is not applicable to you. Please select the sole trader tax return calculator instead.

Total ABN Income

This refers to the total amount of money you’ve earned through your Australian Business Number, or ABN. If you run a side business or freelance in your spare time, you’re required to obtain an ABN to legally operate. Then anytime you earn income from those business activities, you’ll report it on your tax return as ABN Income.

Tax Withhold

Tax withholding refers to income taxes that are deducted from an employee’s pay by their employer and paid to the Australian Taxation Office (ATO) on their behalf throughout the year. When you work as an employee in Australia, your employer takes tax out of your pay based on your tax file number and the tax withholding tables. This reduces the amount of tax you have to pay when you submit your annual tax return. The amount withheld is credited to you so there’s often a tax refund if too much tax was withheld over the year.

Work Related Expenses

Work related expenses refer to costs incurred that are necessary for an employee to earn their income. Some common deductible work expenses in Australia include the cost of uniforms, tools or equipment used for work, car expenses for driving to different work sites, self-education costs that have a strong connection to your current job, and the cost of doing work-related study. To claim a work expense deduction, you need to have paid for it yourself and not been reimbursed. Keep records like receipts to support any claims made. Documenting work expenses can potentially help lower your taxable income and tax owed when submitting your annual tax return.

Medicare Levy Exemption

A Medicare Levy Exemption refers to certain circumstances where individuals and families do not need to pay the standard 2% Medicare Levy when submitting their tax return. This includes situations where taxpayers have a low income, hold a valid Medicare Levy Exemption Certificate issued by Services Australia, receive certain types of Australian Government allowances or pensions, live overseas, or have a spouse who is also liable for the Medicare Levy. To claim an exemption, documentation needs to be provided to support your eligibility. Getting an exemption can reduce your overall tax liability. However, it’s important to understand your specific circumstances as not everyone is exempt from paying the Medicare Levy.

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