Estimate your weekly, fortnightly, or monthly take-home pay under the new 2024-2025 Revised Stage 3 tax cuts.
Recent Calculations
How it Works
New Tax Cuts Explained (2024-25)
This calculator uses the Revised Stage 3 Tax Cuts which came into effect on July 1, 2024. These changes were designed to provide more relief to middle-income earners compared to the original legislation.
Key Changes
- 19% rate cut to 16%: For income between $18,200 and $45,000.
- 32.5% rate cut to 30%: For income between $45,000 and $135,000.
- 37% threshold increased: Now applies from $135,000 to $190,000 (previously cut off at $180,000).
What is the Medicare Levy?
Most Australian residents pay a 2% levy on their taxable income to fund the public health system.
- Low Income Reduction: If you earn less than $27,222 (singles), you generally pay no Medicare levy.
- Shade-in: If you earn slightly above this, you pay a reduced rate before the full 2% kicks in at around $34,027.
The Math Behind It
The calculator uses the Revised Stage 3 Tax Cuts (effective July 1, 2024) and the progressive Medicare Levy formula.
Income Tax Formula (Residents): $$
\text{Tax} = \begin{cases} 0 & \text{if } y \le 18,200 \\ 0.16(y - 18,200) & \text{if } 18,200 < y \le 45,000 \\ 4,288 + 0.30(y - 45,000) & \text{if } 45,000 < y \le 135,000 \\ 31,288 + 0.37(y - 135,000) & \text{if } 135,000 < y \le 190,000 \\ 51,638 + 0.45(y - 190,000) & \text{if } y > 190,000 \end{cases}
$$
Where:
- $y$ is your Annual Taxable Income.
- The formula calculates the cumulative tax for each tier (Resident rates).
- Medicare Levy is calculated separately (usually $0.02 \times y$).