The ATO provides an income tax table to help you work out income tax rates and tax deductions. With the help of this ATO tool, you will find different tax tables for employees and contractors.
Tax Tables & Tax Scale Australia
The tax table that is right for you and your business can vary depending on your specific needs. That is why the Australian Tax Office (ATO) provides employers with a range of tax deduction tables to make PAYG withholding simple. You will also find a handy calculator that will calculate the correct tax rates.
Find an accounting advisor near you and see below for more info on tax tables and the tax scale in Australia.
What Is a Tax Table?
For example, if you have an employee earning the national average of $67,860, this breaks down to a monthly $5,655, fortnightly $2,610, and weekly $1,305. This is also known as their gross pay. Once taxes, medicare, and superannuation are deducted, you will then have their net pay.
You can see from the tax table that the weekly pay of $1,305 should have $268 withheld, which totals $536 in withheld taxes for a fortnight, and $1,157 for the month. Therefore, the total tax withheld for someone earning $67,860 amounts to $13,884. So, when your employees file their tax returns at the end of the financial year, the amount of tax they should be liable for is zero. Please note that this is an example only, and individual circumstances may vary.
Australian Tax Brackets
The ATO sets tax brackets to determine the highest rate of tax a taxpayer will pay on their income (this is called the marginal tax rate) each financial year. Every taxpayer falls into a specific bracket, and which in turn depends on how much taxable income they earn.
There are different brackets for residents, foreign residents, and working holidayers. The table below highlights the current ATO tax brackets for Australian residents.
|
Tax Brackets |
Tax Payable |
|
Up to $18,200 |
None |
|
$18,201 - $45,000 |
19 cents per dollar over the $18,200 threshold. |
|
$45,001 - $120,000 |
A rate of $5,092. Plus 32.5 cents per dollar over the $45,000 threshold. |
|
$120,001 - $180,000 |
A rate of $29,467. Plus 37 cents per dollar over the $120,000 threshold. |
|
$180,001 and over |
A rate of $51,667. Plus 45 cents per dollar over the $180,000 threshold. |
Calculate Taxes Quickly with our Pay & Income Tax Calculator
Calculating taxes can be difficult, use the QuickBooks pay and income tax calculator to help calculate your income tax. Simply enter your total income into the pay calculator to calculate your gross pay, tax deductions and net pay.
This helps you to budget and plan for expenses, allowing you to make informed financial decisions. By calculating your income tax, you can also estimate your savings for the year and keep track of your expenses.
For a more automated solution sign up for QuickBooks with a free 30-day trial.
Easy access to tax tables
Weekly Tax Table
Our weekly tax table can be used to keep track of employee withholdings for businesses that pay their employees weekly. It allows you to calculate the total weekly earnings, including any allowances and irregular payments. You can also use the table to record tax-free thresholds, if applicable.
Disclaimer: This page is provided for general information purposes only and does not constitute accounting, tax, business, or legal advice. You should always consult your own advisors for advice relating to your business or situation. Always consult the ATO directly as information changes from time to time: https://www.ato.gov.au/rates/tax-tables/
Frequently Asked Questions about Tax Tables
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