ATO Income Tax Calculator 2024-25
Calculate your Australian income tax liability for the 2024-25 financial year with official ATO rates
Comprehensive Guide to ATO Income Tax Rates 2024-25
The Australian Taxation Office (ATO) has released the official income tax rates for the 2024-25 financial year, which runs from 1 July 2024 to 30 June 2025. This guide provides a detailed breakdown of the tax brackets, calculations, and key considerations for Australian taxpayers.
Key Changes for 2024-25
The 2024-25 financial year brings several important changes to Australia’s tax system:
- Stage 3 Tax Cuts: The long-awaited Stage 3 tax cuts come into effect, reducing tax rates for middle and high-income earners
- Medicare Levy Thresholds: Adjusted thresholds for low-income earners who may be exempt from the Medicare levy
- Superannuation Changes: Increased concessional contribution caps and adjustments to the superannuation guarantee rate
- Low and Middle Income Tax Offset (LMITO): This offset has been discontinued from 2022-23, with the Low Income Tax Offset (LITO) remaining
2024-25 Tax Rates for Australian Residents
| Taxable Income | Tax on This Income | Effective Tax Rate |
|---|---|---|
| $0 – $18,200 | Nil | 0% |
| $18,201 – $45,000 | 19% of excess over $18,200 | 0% – 19% |
| $45,001 – $135,000 | $5,092 plus 30% of excess over $45,000 | 19% – 30% |
| $135,001 – $190,000 | $31,292 plus 37% of excess over $135,000 | 30% – 37% |
| $190,001 and over | $51,632 plus 45% of excess over $190,000 | 37% – 45% |
Note: These rates do not include the Medicare levy of 2% (for most taxpayers) or any applicable tax offsets.
Tax Rates for Non-Residents (2024-25)
| Taxable Income | Tax on This Income |
|---|---|
| $0 – $135,000 | 32.5% of each $1 |
| $135,001 – $190,000 | $43,875 plus 37% of excess over $135,000 |
| $190,001 and over | $62,632 plus 45% of excess over $190,000 |
Working Holiday Maker Tax Rates
Working Holiday Makers (WHMs) on visa subclass 417 or 462 have different tax rates:
- 0% – $45,000: 15%
- $45,001 – $135,000: $6,750 plus 30% of excess over $45,000
- $135,001 – $190,000: $35,250 plus 37% of excess over $135,000
- $190,001 and over: $55,607 plus 45% of excess over $190,000
Medicare Levy 2024-25
Most Australian taxpayers pay a Medicare levy of 2% of their taxable income. However, there are exemptions and reductions:
- Low-income thresholds:
- Singles: $24,276 (reduced levy applies up to $30,345)
- Families: $40,939 (plus $4,027 for each dependent child)
- Single seniors/pensioners: $38,365 (reduced up to $47,956)
- Half levy (1%) applies for incomes between the threshold and the upper limit
- Full exemption for blind pensioners and recipients of certain government payments
Tax Offsets and Rebates
Several tax offsets can reduce your tax payable:
- Low Income Tax Offset (LITO): Up to $700 for taxpayers with income up to $37,500, phasing out to $66,667
- Low and Middle Income Tax Offset (LMITO): Discontinued from 2022-23
- Senior Australians and Pensioners Tax Offset (SAPTO): Available to eligible seniors and pensioners
- Private Health Insurance Rebate: Income-tested rebate on private health insurance premiums
Superannuation Considerations
Superannuation plays a crucial role in tax planning:
- Concessional contributions cap: $30,000 (increased from $27,500 in 2023-24)
- Non-concessional contributions cap: $120,000 (or $360,000 over 3 years using bring-forward rule)
- Superannuation guarantee rate: 11.5% (increasing to 12% by 2025)
- Division 293 tax: Additional 15% tax on concessional contributions for individuals with income > $250,000
How to Calculate Your Tax
To manually calculate your tax:
- Determine your taxable income (gross income minus deductions)
- Apply the appropriate tax rates based on your residency status
- Calculate any applicable Medicare levy
- Subtract any tax offsets you’re eligible for
- Add any additional levies (e.g., Division 293 tax for high-income earners)
Common Tax Deductions
Maximise your deductions with these common claims:
- Work-related expenses (uniforms, tools, home office costs)
- Self-education expenses related to your current job
- Investment property expenses (interest, repairs, depreciation)
- Charitable donations (must be to registered deductible gift recipients)
- Income protection insurance premiums
- Tax agent fees
Tax Planning Strategies
Consider these strategies to legally minimise your tax:
- Salary sacrificing: Redirect pre-tax income to superannuation (within caps)
- Negative gearing: For investment properties where expenses exceed income
- Prepay expenses: Bring forward deductible expenses before 30 June
- Capital gains timing: Realise capital gains in years with lower income
- Spouse contributions: Contribute to a low-income spouse’s super
- First Home Super Saver Scheme: Save for a home deposit through super
Important ATO Deadlines
- 30 June 2025: End of financial year
- 14 July 2025: Due date for PAYG payment summaries (if not reporting through STP)
- 28 October 2025: Tax return due date (unless using a tax agent)
- 31 October 2025: Deadline for tax agent clients (may vary)
- 28 February 2026: Final deadline for some tax agent clients
Common Tax Mistakes to Avoid
- Overclaiming deductions: Only claim what you’re entitled to and have records for
- Forgetting private health insurance: Not including your private health statement can affect your rebate
- Incorrectly reporting capital gains: Failing to account for the 50% CGT discount for assets held >12 months
- Missing super contributions: Not claiming deductible personal super contributions
- Ignoring foreign income: Australian residents must declare worldwide income
- Late lodgment: Can result in penalties and loss of potential refunds
ATO Resources and Further Reading
For official information, consult these authoritative sources:
Disclaimer: This calculator provides estimates based on the information you provide and the 2024-25 ATO tax rates. It does not constitute financial advice. For precise calculations, consult a registered tax agent or the ATO directly. Tax laws may change, and individual circumstances can affect your tax outcome.