Simple personal income tax
The income tax you pay weekly/fortnight/monthly depends on your income minus any immediate deductions like salary sacrifice and tax offsets. Your Australian Tax File Number makes this work so be sure to declare it! Most other deductions only yield a benefit after you lodge your tax return for the year.
2019-2020 and 2020-2021 income tax
This calculator has the tax rates for 2019-2020 and 2020-2021 and will generate the correct tax that should be withheld from pay. The latest tax cuts work by increasing the Low and Middle Income Tax Offset, not by cutting tax rates directly – in plain English this means that most taxpayers will receive a bigger offset after they put in their yearly tax return. There is more information on the offsets at the ATO.
The tax withheld calculator conforms to ATO rates according to "Statement of formulas for calculating amounts to be withheld".
This version of the calculator applies to payments made in the 2020-21 income year. It calculates HELP repayments according to "Higher Education Loan Program weekly tax table".
It calculates FS repayments according to "Student Financial Supplement Scheme weekly tax table". It takes into account the income tax rates and tax free threshold. It takes into account the Medicare levy but not the Medicare surcharge.
The "salary sacrifice saving" is based on a reduction in your take home pay according to PAYG tables, not your end of your tax assessment.
The "this could mean at retirement" outcome uses an actuary projection and the following assumptions:
- Assumes Salary increase of 3.0% per annum.
- Assumes Investment Returns of 7.5% per annum (gross of taxes and fees at 7.5%) including taxes of 15% deducted.
- Investment returns are assumed to be credited to members' accounts annually.
- Superannuation Guarantee Contribution starts from 9.5% of ordinary time earnings at July 1st 2016 and then increases to 12% as per current legislation
- The LISTO applies from 1 July 2017. We assume you qualify for this if your income is below the relevant government threshold and you meet the age and working requirements.
- We assume a 15% tax on contributions to your super.
- We assume that contributions are made and fees are deducted annually, at the mid-year point.
- A tax rebate of 15% is assumed on fees deducted from members' accumulation accounts
- We assume an annual inflation rate of 2%. In addition, a further annual increase of 1% is included to take into account the cost of meeting increases in community living standards. This means a total assumed inflation rate of 3% is allowed for.
- Average fees assumed
- 0% on contributions
- $78/year member fee
- 0.58% asset fee
- No deductions are made for insurance premiums
Purpose and assumptions
This calculator generates information about how your taxable income and retirement outcome are influenced by salary sacrifice. This is based on certain assumptions.
Your taxable income and retirement outcome will be affected by many things including the amount of contributions you make, fees, investment returns and regulatory changes. Some factors that may affect your retirement outcomes may not have been taken into account.
Outcome is based on your contributions being made annually, at the mid-year point, on your fees being deducted annually and your investment returns being credited to your account annually.
This is a Model, not a Prediction
The tool is not intended to be relied upon for the purposes of making a financial decision. Consider a fund’s product disclosure statement (PDS) and your objectives, financial situation and needs, which are not accounted for in this information, before making an investment decision.
You are responsible for your own investment decisions and should obtain specific, individual advice from a financial services licensee before making any financial decisions.