Yearly Tax Table

Yearly Tax Table

As an employer, you need to know how much to withhold from your employees for tax purposes before you pay them to meet your obligations to the Australian Tax Office (ATO). Depending on how frequently you pay them, different tax tables apply. 

Whether you want to know how to tabulate fortnightly tax or how to calculate hourly rate from annual salary, there are plenty of resources available. Tax tables are a useful way for you to determine exactly what to withhold from and who to pay directly to the ATO. 

However, while the ATO provides daily, weekly, fortnightly, and monthly tax tables, we have also put together more information about yearly tax tables since these are harder to locate on the ATO website. 

The tax guide below will provide you with the information you need about how incomes are taxed, using the tax brackets below.

Taxable Income

Tax Due

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.

Over $180,001

A rate of $51,667. Plus 45 cents per dollar over the $180,000 threshold.

The average annual salary in Australia is $67,860. The annual tax table below provides you with a breakdown of the average Australian's tax liability annually, as well as the weekly, fortnightly, and monthly breakdown.

Year

Annually

Monthly

Fortnightly

Weekly

Gross Income

$67,860

$5,655

$2,610

$1,305

Superannuation

$6,786

$565.50

$261

$130.50

Tax Withheld

$13,932

$1,161

$536

$268

Medicare Levy

$1,357.20

$113.10

$52.20

$26.10

Tax Offsets

Not applicable

Not applicable

Not applicable

Not applicable

Net Income

$45,784.80

$3,815.40

$1,760.80

$880.40

If you want to know how to calculate hourly rate from annual salary, it's as simple as dividing an employee's weekly pay by the number of days you work and dividing that number by the number of hours you work each day. 

Example

Based on the average Australian salary, and assuming a worker works five, eight-hour days, their hourly rate is $36.625 before taxes and $21.49 after taxes. So, the average hourly take-home rate will be $21.49. 

You don't need an official yearly tax table in Australia, as the ATO provides you with a range of tables like the ATO fortnightly tax table. You only need to update your tax table yearly if the tax brackets change. 

You can also use the ATO's tax calculator to find the correct amount of PAYG withholding you need to pay. All tax withholding should be settled and paid before tax returns are filed. 

Using an accounting software like QuickBooks will do most of the heavy lifting for you. With QuickBooks Online, you can manage your taxes, along with deductions and PAYG withholding. Try it for free today

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/.

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