Income tax rates
Have you ever wondered how your personal tax is worked out?
The ATO have issued new tax rates, which are being back dated to 1st July 2020 as another measure to help struggling families in the Covid-19 crisis.
The new marginal tax rates for the 2020 / 21 tax year (plus Medicare) are:
Annual Income & Calculation:
$0 - $18,200
No Tax
$18,201 - $45,000
19 cents for each $1.00 over $18,200
$45,001 - $120,000
$5,092 plus 32.5 cents for each $1 over $45,000
$120,001 - $180,000
$29,467 plus 37 cents for each $1 over $120,000
$180,000 +
$51,667 plus 45 cents for each $1 over $180,000
An example of this would be:
An annual salary of $75,000.00 would be taxed as follows:
$5,092.00 plus
$45,000 - $75,000 = $30,000
$30,000 x 0.325 cents = $9,750
$9,750 + $5,092 = $14,842 total tax, plus Medicare