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Income Tax Calculator

Our Income Tax Calculator will help you calculate income tax liability based on the Australian Tax Office’s personal income tax rates and thresholds. This tool will also give you the difference of your current and previous year tax liability as well as annual and weekly net income.

The concept of income tax can be a confusing and confounding one for most individuals. It’s a confusing and complicated topic that often requires the expertise of accountants and tax agents to navigate.

However, understanding your income tax can be vital in certain situations, such as when applying for a home loan. When filling out a lender’s application form, borrowers must indicate their taxable income and tax payable for the current financial year.

 

To obtain an estimation of these figures, individuals can use an income tax calculator. But keep in mind that the calculations provided by such tools do not consider all fees and charges and are solely an estimate. As such, it’s sensible to seek advice from a tax professional for exact details and furnish your Excellence Finance Mortgage Broker with the most reliable information.

 

It’s crucial to note that interest rates and other costs are variable and subject to change over time, which could impact the total cost of the loan. Therefore, borrowers should discuss their individual circumstances with a qualified Australian Credit Licensee or Authorised Credit Representative (Excellence Finance Mortgage Broker) to make informed decisions.

 

What is Income Tax?

Income tax is a tax imposed on individuals, businesses, and other entities based on their income or profits. The tax is usually calculated as a percentage of the income earned during a given tax year.

What’s Australia’s income Tax Threshold?

In Australia, the income tax system is progressive, which means that the tax rate increases as a person’s income increases. The income tax rates for the 2021-2022 financial year range from no tax payable for individuals earning up to $18,200 per year to a tax rate of $51,667 plus 45 cents for each dollar earned over $180,000 for individuals earning over $180,000 per year.

Failing to pay income tax in Australia can have serious consequences, including penalties, interest charges, and legal action. The Australian Taxation Office (ATO) has the authority to take various actions to recover unpaid taxes, which may include penalties ranging from 1% to 75% of the tax owed, interest charges, legal action, and impacting an individual’s credit rating, making it more difficult to obtain credit in the future.

 

Do Foreigners in Australia need to pay Income Tax?

Foreigners who work and earn income in Australia are generally required to pay income tax on their Australian-sourced income. This includes both temporary and permanent residents, as well as foreign workers who are in Australia on a work visa or other temporary visa. The Australian tax system is based on the principle of residency, meaning that individuals considered residents for tax purposes are generally subject to tax on their worldwide income, while non-residents are only taxed on their Australian-sourced income.

If you have any questions regarding income tax or need assistance in understanding how your taxable income affects your ability to borrow for a home, contact an Excellence Finance mortgage broker today to clarify this complex topic. Connect with us at info@excellencefinance.com.au or call us (02) 9609 4655​. We’d be more than happy to address your concerns.

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