Facts about Australian Tax Calculation

The tax calculator Sydney is used to calculate your quarterly estimated income taxes, the interest amount due on your unpaid income tax, or the amount your employer should withhold from your income for state taxes. Australia uses a pay-as-you-go (PAYG) tax withholding system, meaning that tax is deducted from an employee's salary at source. Employers must calculate the amount of Income Tax, Medicare Levy and Temporary Budget Repair Levy to withhold based on the employee's declaration. Income tax on personal income is progressive, with higher rates being applied to higher income levels. Australia is the second most livable country in the world, after Norway, according to the Human Development Index (HDI) published by the United Nations in 2013. The HDI provides a composite measure of three basic dimensions of human development: having a long and healthy life, being knowledgeable, and having a good standard of living.

Australia has one of the highest proportion of immigrants in the western world, with about a quarter of its population born overseas. Most immigrants come from the United Kingdom, New Zealand, China and India. It is estimated that by the year 2050, approximately one-third of Australia's population could be born outside its borders. If you were not an Australian resident for tax purposes for the whole of 2016–17, you are exempt from the Medicare levy. A Medicare levy reduction is based on your taxable income. A Medicare levy exemption is based on specific categories. You need to consider your eligibility for a reduction or an exemption separately. Your eligibility for a reduction of your Medicare levy is based on your and your spouse's taxable income and your circumstances.

Your circumstance:

-If your taxable income is equal to or less than your lower threshold amount.

-If your taxable income is greater than your lower threshold amount and less than or equal to your upper threshold amount, and you are single with no dependants.

-If your taxable income is over your upper threshold amount, and you are single with no dependants.

-If your taxable income is greater than your lower threshold amount but you:

·         had a spouse

·         had a spouse who died during the year, and you did not have another spouse before the end of the year, or

·         are entitled to an Invalid and Invalid Carer tax offset in respect of your child at item T6, or

·         at any time during 2016–17 had sole care of one or more dependent children or students.

Working out your number of dependent children

A dependent child is any child who was an Australian resident whom you maintained in 2016–17 and whose adjusted taxable income was less than the amounts in the table below.

Working out your family taxable income limit

Your Medicare levy is reduced if your family taxable income is equal to or less than the following limits.

The tax calculator Sydney depicts a summarized estimate. Your income consists of only salary and wages. The advanced tax calculator offers a more complete picture of your circumstantial tax situation which we recommend using if you have the necessary information obtained.