Why tax isn't a flat percentage
Australian income tax is progressive: only the income within each bracket is taxed at that bracket's rate, and the first $18,200 is tax-free. On top sits the 2% Medicare levy. Offsets such as LITO can reduce the final amount.
Common questions
Tax-free up to $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above that, plus the 2% Medicare levy.
Your marginal rate is the rate on your next dollar earned. Your average rate is total tax divided by income — always lower.
No. Offsets like the Low Income Tax Offset (LITO) can reduce your tax further and are not included in this estimate.