Ato Tax Rates 2021 22 Calculator

Calculate your Australian tax liability for the 2021-22 financial year with this official ATO-compliant tool.

Comprehensive Guide to ATO Tax Rates 2021-22

The 2021-22 financial year (1 July 2021 to 30 June 2022) introduced several important changes to Australia’s tax system. This guide provides a detailed breakdown of the tax rates, thresholds, and key considerations for individuals, businesses, and investors during this period.

1. Individual Tax Rates for 2021-22

The Australian Taxation Office (ATO) maintained the progressive tax system for the 2021-22 financial year, with the following rates applying to residents:

Taxable Income	Tax on this Income	Effective Tax Rate
$0 — $18,200	Nil	0%
$18,201 — $45,000	19c for each $1 over $18,200	0% – 19%
$45,001 — $120,000	$5,092 plus 32.5c for each $1 over $45,000	19% – 32.5%
$120,001 — $180,000	$29,467 plus 37c for each $1 over $120,000	32.5% – 37%
$180,001 and over	$51,667 plus 45c for each $1 over $180,000	37% – 45%

Key changes from previous years included:

• The Low and Middle Income Tax Offset (LMITO) was extended for one final year, providing tax relief of up to $1,080 for individuals and $2,160 for couples.
• The Low Income Tax Offset (LITO) increased to $700, reducing to $325 for incomes between $37,500 and $45,000, and phasing out completely at $66,667.
• The 37% tax bracket threshold increased from $90,000 to $120,000, while the 32.5% bracket expanded to cover incomes up to $120,000.

2. Non-Resident Tax Rates

Foreign residents faced different tax rates in 2021-22, with no tax-free threshold:

Taxable Income	Tax Rate
$0 — $120,000	32.5%
$120,001 — $180,000	$39,000 plus 37c for each $1 over $120,000
$180,001 and over	$61,200 plus 45c for each $1 over $180,000

3. Medicare Levy and Surcharge

The standard Medicare Levy remained at 2% of taxable income for most taxpayers in 2021-22. However, several important considerations applied:

• Low-income thresholds: Singles earning ≤ $23,226 and families earning ≤ $39,167 were exempt from the levy, with partial exemptions for incomes up to $29,033 (singles) and $48,959 (families).
• Medicare Levy Surcharge (MLS): Applied to high-income earners without private hospital cover:
  • 1% for singles earning $90,001–$105,000 (families $180,001–$210,000)
  • 1.25% for singles earning $105,001–$140,000 (families $210,001–$280,000)
  • 1.5% for singles earning ≥ $140,001 (families ≥ $280,001)
• Exemptions: Certain visa holders (e.g., 457, 482) and Norfolk Island residents were exempt from the levy.

4. HECS/HELP and Student Loan Repayments

The 2021-22 financial year saw adjustments to the repayment thresholds for Higher Education Loan Program (HELP) debts, including HECS-HELP, FEE-HELP, and VET Student Loans:

Repayment Income (2021-22)	Repayment Rate	Repayment Income (2020-21)
Below $47,014	0%	Below $46,620
$47,014 — $54,282	1%	$46,620 — $53,761
$54,283 — $57,547	2%	$53,761 — $56,932
$71,725 — $78,034	4%	$70,500 — $76,668
$93,592 — $103,049	5.5%	$92,065 — $101,300
$139,108 and above	7.5%	$137,898 and above

Key points about HECS/HELP repayments in 2021-22:

1. Repayment income includes taxable income plus reportable fringe benefits, net investment losses, and reportable super contributions.
2. The repayment threshold increased by $394 from the previous year, providing slight relief for low-income earners.
3. Voluntary repayments of $500 or more received a 5% bonus (discontinued from 1 January 2017 but still relevant for some).
4. Overseas debtors faced different repayment rules based on worldwide income.

5. Tax Offsets and Rebates

The 2021-22 financial year featured several important tax offsets:

• Low and Middle Income Tax Offset (LMITO):
  • Maximum offset of $1,080 for individuals with taxable incomes between $48,000 and $90,000.
  • Phased out for incomes above $90,000, completely removed at $126,000.
  • Delivered as a reduction in tax payable when lodging the tax return.
• Low Income Tax Offset (LITO):
  • Maximum offset of $700 for incomes up to $37,500.
  • Reduced by 5 cents for each dollar over $37,500, phasing out completely at $66,667.
• Senior Australians and Pensioners Tax Offset (SAPTO):
  • Maximum offset of $2,230 for singles and $3,204 for couples.
  • Income thresholds: $32,279 (singles), $57,948 (couples combined).
• Private Health Insurance Rebate:
  • Income-tested rebate ranging from 8.208% to 32.834% of premiums.
  • Three tiers based on income: ≤ $90,000 (singles) / ≤ $180,000 (families); $90,001–$105,000 / $180,001–$210,000; $105,001–$140,000 / $210,001–$280,000.

6. Capital Gains Tax (CGT) in 2021-22

Capital gains continued to be taxed as part of an individual’s income tax, with the following key rules:

• Discount method: 50% discount for assets held >12 months (33.33% for complying super funds).
• Small business concessions: Four concessions available for eligible small businesses:
  1. 15-year exemption
  2. 50% active asset reduction
  3. Retirement exemption (lifetime limit $500,000)
  4. Rollover
• Main residence exemption: Generally exempt for properties used as the taxpayer’s main residence, with partial exemptions for properties used to produce income.
• CGT withholding for foreign residents: 12.5% withholding on sales of Australian property worth $750,000 or more.

7. Superannuation Contributions and Tax

The 2021-22 financial year maintained the following superannuation rules:

• Concessional contributions cap: $27,500 (increased from $25,000 in 2020-21).
• Non-concessional contributions cap: $110,000 (or $330,000 over 3 years using bring-forward rule).
• Super guarantee rate: 10% of ordinary time earnings (increased from 9.5% in 2020-21).
• Tax on contributions:
  • 15% on concessional contributions (30% for high-income earners with income + contributions > $250,000).
  • No tax on non-concessional contributions (within caps).
• First Home Super Saver Scheme (FHSSS): Maximum releasable amount increased to $50,000 (from $30,000).
• Downsizer contributions: $300,000 per person (age 65+) from sale of main residence.

8. Fringe Benefits Tax (FBT)

The FBT year runs from 1 April to 31 March, with the following key details for the 2021-22 FBT year (1 April 2021 — 31 March 2022):

• FBT rate: 47% (aligned with top marginal tax rate including Medicare levy).
• Gross-up rates:
  • Type 1 (GST-creditable benefits): 2.0802
  • Type 2 (non-GST-creditable benefits): 1.8868
• Exemptions and concessions:
  • Work-related items exemption (laptops, phones, etc.)
  • Minor benefits exemption (< $300)
  • Electric vehicles exemption (from 1 April 2022)
• Reportable fringe benefits: Included on payment summaries if total > $2,000.

9. Small Business Tax Concessions

The 2021-22 financial year offered several tax concessions for small businesses (aggregated turnover < $10 million):

• Instant asset write-off:
  • Temporary full expensing (no dollar limit) for eligible businesses until 30 June 2023.
  • Assets must be first used or installed ready for use by 30 June 2023.
• Lower company tax rate: 25% for base rate entities (turnover < $50 million and ≤80% passive income).
• Simplified trading stock rules: Option to avoid end-of-year stocktake if turnover < $10 million.
• PAYG instalment concessions: Option to pay quarterly PAYG instalments based on GDP-adjusted notional tax.
• FBT exemptions: Multiple work-related portable electronic devices.

10. Investment Property Deductions

Property investors needed to be aware of several key rules in 2021-22:

• Depreciation:
  • Division 40 (plant and equipment) and Division 43 (building allowance) deductions.
  • Second-hand depreciating assets in residential properties acquired after 9 May 2017 generally not deductible.
• Travel expenses: Deductions for travel to inspect rental properties disallowed since 1 July 2017.
• Interest deductions: Only deductible for periods when property is genuinely available for rent.
• Capital works: 2.5% or 4% deduction for construction costs (40 years for residential, 25 years for commercial).
• Negative gearing: Losses could be offset against other income.

11. Working from Home Deductions

The ATO introduced simplified working-from-home (WFH) deduction methods due to COVID-19:

• Shortcut method (1 March 2020 — 30 June 2022):
  • 80 cents per work hour (all-inclusive rate).
  • No need to have a dedicated work area.
  • Requires record of hours worked (e.g., timesheets, rosters, diary notes).
• Fixed rate method:
  • 52 cents per work hour (covers electricity, gas, and depreciation of office furniture).
  • Separate claims for phone/internet, computer consumables, stationery.
  • Requires dedicated work area.
• Actual cost method:
  • Claim actual additional expenses incurred.
  • Requires detailed records and receipts.

12. Cryptocurrency Taxation

The ATO maintained its stance on cryptocurrency taxation in 2021-22:

• Capital gains tax (CGT):
  • Applies to disposal of crypto (selling, trading, gifting, or using to purchase goods/services).
  • 50% CGT discount for assets held >12 months.
  • Personal use asset exemption may apply if crypto is used to purchase items for personal use/consumpion.
• Income tax:
  • Crypto received as payment for goods/services is assessable income.
  • Mining, staking, and airdrops are generally taxable as income at fair market value.
• Record-keeping:
  • Must keep records of all transactions (dates, values in AUD, purpose).
  • ATO has data-matching programs with crypto exchanges.

13. Tax Planning Strategies for 2021-22

Effective tax planning strategies for the 2021-22 financial year included:

1. Income deferral: Delaying receipt of income until after 30 June where possible (e.g., bonuses, investment income).
2. Expense acceleration: Bringing forward deductible expenses (e.g., pre-paying interest, purchasing assets before year-end).
3. Superannuation contributions: Maximizing concessional contributions ($27,500 cap) and non-concessional contributions ($110,000 cap).
4. Capital losses: Realizing capital losses to offset capital gains (but beware of wash sale rules).
5. Trust distributions: Careful allocation of trust income to beneficiaries on lower marginal tax rates.
6. Small business concessions: Utilizing instant asset write-off and other small business tax breaks.
7. Franking credits: Managing dividend income to optimize franking credit utilization.
8. Charitable donations: Making tax-deductible donations before year-end.
9. Investment property: Bringing forward repairs and maintenance expenses.
10. Private health insurance: Reviewing coverage to avoid Medicare Levy Surcharge.

14. Common Tax Mistakes to Avoid

Taxpayers frequently made these errors in 2021-22:

• Incorrect work-related expense claims: Overclaiming or lacking substantiation for WFH, uniform, or self-education expenses.
• Rental property errors:
  • Claiming deductions for properties not genuinely available for rent.
  • Incorrectly apportioning expenses for mixed-use properties.
  • Claiming travel to inspect rental properties.
• Cryptocurrency omissions: Failing to report crypto transactions or incorrectly calculating capital gains/losses.
• Superannuation mistakes:
  • Exceeding contribution caps (resulting in excess contributions tax).
  • Incorrectly claiming personal super contributions as deductions.
• Side hustle income: Not declaring income from gig economy work (Uber, Airtasker, etc.) or online sales.
• Sharing economy: Failing to report income from platforms like Airbnb, Stayz, or Uber.
• Record-keeping failures: Not maintaining proper logs for motor vehicle expenses or work-related claims.
• Early access to super: Incorrectly treating COVID-19 early release super as non-assessable income.
• Trust distributions: Improperly documenting trust resolutions or distributions.
• FBT errors: Incorrectly calculating fringe benefits tax or missing reporting deadlines.

15. Key ATO Compliance Focus Areas

The ATO announced these compliance priorities for 2021-22:

• Work-related expenses: Particular focus on WFH claims, with data analytics comparing claims to benchmarks.
• Rental property deductions: Scrutiny of interest deductions, capital works claims, and apportionment of expenses.
• Capital gains from property: Ensuring correct reporting of property sales, including family transfers and inherited properties.
• Cryptocurrency: Data-matching with crypto exchanges to identify unreported transactions.
• Sharing economy: Ensuring income from platforms like Airbnb, Uber, and Airtasker is properly declared.
• Trust distributions: Reviewing distributions to ensure compliance with Division 7A and other trust rules.
• Superannuation: Checking compliance with contribution caps and proper claiming of deductions.
• Private groups and high-wealth individuals: Focus on tax avoidance schemes and proper reporting of international income.

Important Disclaimer: This calculator and guide provide general information only and do not constitute financial advice. Tax laws change frequently, and individual circumstances vary. For accurate tax advice tailored to your situation, consult a registered tax agent or financial advisor. The Australian Taxation Office (ATO) is the definitive source for current tax rates and rules. Always verify information with the ATO or a qualified professional before making financial decisions.

Authoritative Resources

For official information on ATO tax rates and rules for 2021-22, consult these authoritative sources:

• ATO Individual Tax Rates 2021-22 – Official ATO page detailing tax rates and thresholds.
• ATO Medicare Levy Information – Comprehensive guide to Medicare levy rules and exemptions.
• StudyAssist HECS-HELP Repayment Information – Official government resource on student loan repayments.