Australian Tax Rates 2021 Calculator
Calculate your 2021 tax liability based on official ATO rates. Includes Medicare levy and tax offsets.
Your 2021 Tax Results
Comprehensive Guide to Australian Tax Rates 2021
The 2021 Australian financial year (1 July 2020 – 30 June 2021) introduced several important changes to tax rates, offsets, and levies. This guide provides a detailed breakdown of how your tax is calculated, including income tax brackets, Medicare levy rates, and available tax offsets.
2021 Income Tax Rates for Australian Residents
The Australian Taxation Office (ATO) applies progressive tax rates to taxable income. Here are the 2021 tax brackets for Australian residents:
| Taxable Income | Tax on This Income | Tax Rate |
|---|---|---|
| $0 – $18,200 | Nil | 0% |
| $18,201 – $45,000 | 19c for each $1 over $18,200 | 19% |
| $45,001 – $120,000 | $5,092 plus 32.5c for each $1 over $45,000 | 32.5% |
| $120,001 – $180,000 | $29,467 plus 37c for each $1 over $120,000 | 37% |
| $180,001 and over | $51,667 plus 45c for each $1 over $180,000 | 45% |
Non-Resident Tax Rates 2021
Non-residents are taxed at different rates and don’t receive the tax-free threshold:
| Taxable Income | Tax on This Income | Tax Rate |
|---|---|---|
| $0 – $120,000 | 32.5c for each $1 | 32.5% |
| $120,001 – $180,000 | $39,000 plus 37c for each $1 over $120,000 | 37% |
| $180,001 and over | $61,200 plus 45c for each $1 over $180,000 | 45% |
Medicare Levy 2021
The Medicare levy is 2% of taxable income for most taxpayers, with reductions or exemptions available based on income and circumstances:
- Standard rate: 2% of taxable income
- Reduced rate: 1% for singles earning ≤$23,226 or families earning ≤$39,167
- Exemption: Available for low-income earners, certain visa holders, and those entitled to full Medicare benefits
Low Income Tax Offset (LITO) 2021
The LITO reduces tax payable for low-income earners:
- Maximum offset: $700
- Phases out at 5 cents per dollar between $37,500 and $45,000
- Phases out at 1.5 cents per dollar between $45,000 and $66,667
Low and Middle Income Tax Offset (LMITO) 2021
This temporary offset provided additional tax relief:
- Base amount: $255
- Increases to $1,080 for incomes between $37,000 and $90,000
- Phases out between $90,000 and $126,000
HELP and SSL Repayment Thresholds 2021
Repayments for Higher Education Loan Program (HELP) and Student Start-up Loan (SSL) debts are income-contingent:
| Repayment Income | Repayment Rate |
|---|---|
| Below $46,620 | 0% |
| $46,620 – $53,288 | 1% |
| $53,289 – $59,956 | 2% |
| $72,295 – $78,962 | 4.5% |
| $105,985 – $112,652 | 7% |
| $132,011 and above | 10% |
Working Holiday Maker Tax Rates 2021
Special rates apply to working holiday makers (subclass 417 and 462 visas):
- 0% on income up to $45,000
- 15% on income from $45,001 to $120,000
- Standard resident rates apply above $120,000
Tax Planning Strategies for 2021
- Salary Sacrificing: Contribute to superannuation to reduce taxable income
- Deductions: Claim work-related expenses, charitable donations, and investment property costs
- Pre-pay Expenses: Bring forward deductible expenses to the current financial year
- Capital Gains: Time the sale of assets to manage capital gains tax
- Spouse Contributions: Contribute to a low-income spouse’s super to claim an offset
Common Tax Mistakes to Avoid
- Not declaring all income (including side gigs and foreign income)
- Overclaiming work-related expenses without proper records
- Missing the tax-free threshold claim for secondary jobs
- Incorrectly calculating capital gains on property sales
- Forgetting to include dividend income and franking credits