Looking for information this tax time?

Our Tax Resources page provides tax insights, expert tips and tools, whether you want to calculate your income tax, are submitting your first tax return, seeking savings or preparing for retirement.
The information on this page is not personal tax advice, even if provided by a guest author(s) or interviewee(s). Please seek advice from a qualified tax adviser.

Tuan Duong

Tuan Duong
Founder & Principal, Duo Tax
What is capital gains tax?

Liz Russell

Liz Russell
Senior Tax Manager, Etax
What is the family tax benefit?

Ursula Lepporoli, KPMG

Ursula Lepporoli
Global Mobility Services Tax Lead, KPMG
How to lodge a tax return


Mark Chapman

Mark Chapman
Tax Communications Director, H&R Block
What is the instant tax write-off?

Davie Mach

Davie Mach
Chartered Accountant & Director, Box Advisory Services
Low and middle income tax offset

Simone Gielis

Simone Gielis
Senior Tax Agent & General Manager, Etax
What can I claim on my tax return?


Leah Oliver

Leah Oliver
Founder, Minnik Chartered Accountants
Property investor tax tips

Amir Ishak

Amir Ishak
Principal Advisor & Client Director, Property Tax Specialists
CGT property six-year rule

Bonita Cory

Bonita Cory
Chartered Accountant, Enterprise Growth
What is sole trader tax?

Helena Yuan

Helena Yuan
Tax Manager, HLB Mann Judd
Family trusts: Benefits, taxes and the law

John Pidgeon

John Pidgeon
Director, Solvere Wealth
Property investor checklist

Shukri Barbara

Shukri Barbara
Founder, Property Tax Specialists
GST and the margin scheme for property investors

Frequently Asked Questions

Canstar has an income tax calculator that can assist you to calculate your approximate income tax for the current financial year. The income tax calculator calculates the tax payable on gross wages paid in equal weekly amounts. The rates are obtained from the Australian Tax Office. No allowance is made for tax deductions, Medicare or other levies and/or payments.

Here are the Australian income tax rates and brackets for 2020/21 for Australian residents, according to the Australian Taxation Office (ATO):

← Mobile/tablet users, scroll sideways to view full table →

Total taxable income Tax rate
$0 – $18,200 No tax
$18,201 – $45,000 19c for each $1 over $18,200
$45,001 – $120,000 $5,092 plus 32.5c for each $1 over $45,000
$120,001 – $180,000 $29,467 plus 37c for each $1 over $120,000
$180,001 and over $51,667 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.

Source: ATO, October 2020.

Here are the Australian income tax rates and brackets for 2021/22 for Australian residents, according to the Australian Taxation Office (ATO):

← Mobile/tablet users, scroll sideways to view full table →

Total taxable income Tax rate
$0 – $18,200 No tax
$18,201 – $45,000 19c for each $1 over $18,200
$45,001 – $120,000 $5,092 plus 32.5c for each $1 over $45,000
$120,001 – $180,000 $29,467 plus 37c for each $1 over $120,000
$180,001 and over $51,667 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.

Source: ATO, July 2021.

Generally not – standard practice is to only claim the tax-free threshold on one job at a time. The ATO says that in the case of people with two or more income sources in the same financial year, “we generally require that you only claim the tax-free threshold from the payer who usually pays the highest salary or wage”.

– Find out how a second income can affect your taxes.

If your taxable income is less than $126,000, you may be eligible for the Low and Middle Income Tax Offset (LMITO) or “Lamington”, as it’s colloquially known, for the 2020/21 and 2021/22 financial years. The offset helps low- and middle-income earners reduce the amount of tax paid. Eligible singles could save up to $1,080 per annum, and eligible couples up to $2,160, with the ATO working out if you are eligible after you lodge your tax return.

The following taxable income thresholds apply to the Low and Middle Income Tax Offset for 2020/21 and 2021/22:

Taxable Income Amount Low And Middle Income Tax Offset
$37,000 or less $255
$37,001 to $48,000 $255 plus 7.5% of the amount above $37,000
$48,001 to $90,000 $1,080
$90,001 to $126,000 $1,080 minus 3% of the amount above $90,000

Source: ATO (2021)

More than 700 Australians were surveyed about their experiences in a Canstar Blue survey, with some of Australia’s biggest tax agencies featuring in Canstar Blue’s 2020 reviews and ratings. Canstar Blue’s research has revealed the main drivers of overall customer satisfaction for Aussies who use tax agents. These are:

  • Quality of advice provided: 34%
  • Value for money: 28%
  • Turnaround time: 19%
  • Customer service: 11%
  • Website navigation: 6%
  • Ease of applying: 2%

When you sell certain types of property, including real estate, the difference between how much you paid for it and how much you sold it for is known as capital gains (or potentially capital loss) and this may have tax implications for you. For instance, according to the ATO, if you profit from the sale of an investment property, that profit is considered a capital gain and must be declared on your income tax return.  The tax you have to pay on a capital gain is commonly known as capital gains tax or CGT, although it is technically part of your income tax, rather than a separate tax. 

Read the full story by Tuan Duong, Duo Tax

According to the capital gains tax six-year rule, you can use your home as an investment property for up to six years, and the ATO may still treat it as if it were your principal place of residence (PPOR) for capital gains tax purposes. So, a property investor can often also sell their property and not have to pay CGT.

Dealing with the tax implications of shares and ETFs can be very complex. Many investors use a tax agent to ensure that their return is completed accurately and it can make sense to take tax advice throughout all stages of your investment journey, from the initial investment right through to the sale of your portfolio. 

Read the full story by Mark Chapman, H&R Block

When you dispose of shares, assuming you are an investor, not a trader, you will normally have to pay capital gains tax (CGT) on any profits. Any shares acquired before 20 September, 1985 are not subject to CGT. CGT taxes any increase in value from the time the share was acquired.

Read the full story by Mark Chapman, H&R Block

An ETF takes the form of a trust and the return paid by an ETF is treated like a distribution from the trust. However, that return will incorporate many different components, such as dividends, franking credits, interest, foreign income and capital gains. Each of those individual elements then needs to be split out by you and entered into the correct boxes on your tax return. Fortunately, most ETF providers give investors a year-end tax statement. Make sure you look out for and keep your annual tax statement.

Read the full story by Mark Chapman, H&R Block

According to Moneysmart, an asset can be a financial item like money, bonds, shares or a bank account; or a physical item like a house, land or a car that you own. The ATO has information about owning and protecting assets that you own, and how you can manage them for tax purposes. With self-managed super funds (SMSFs), for example, the ATO says assets need to be recorded in a particular way to ensure they are protected in case of creditor disputes.

If you are a rideshare driver, you should generally be able to claim at least some of your car insurance premiums as a deduction in your tax return, alongside all your other business expenses including fuel and the costs to maintain your vehicle. According to the Australian Taxation Office (ATO), expenses for rideshare drivers can sometimes be part business and part private use, and you can only claim a deduction for the business portion of your costs. You will also need to show how you calculated the business and private use components of your expenses. Keep in mind there’s a tax-free threshold in Australia, with different tax brackets based on what you earn.

Jacqueline Belesky

Jacqueline Belesky
Sub Editor
Tax and cryptocurrency

Effie Zahos

Effie Zahos
Editor-at-Large
Tax tips: what the ATO will be watching

Katie Rodwell Canstar

Katie Rodwell
Finance Writer
The luxury car tax

Shay Waraker

Shay Waraker
Finance & Lifestyle Editor
Testamentary trusts

Sean Callery Author Headshot

Sean Callery
Deputy Editor
Inheritance and estate tax in Australia

Maria Bekiaris

Maria Bekiaris
Editorial Campaigns Manager
Super Guarantee increase: will it mean a pay cut?

Ellie McLachlan

Ellie McLachlan
Senior News Journalist
What are franking credits?

Tamika Seeto
Finance Journalist
A guide to the private health insurance rebate

 

Editorial expertise

Canstar’s tax articles, including from our valued contributors, have been reviewed and edited by our experienced Sub Editors, Jacqueline Belesky and Tom Letts in Canstar’s Editorial Team.

Jacqueline brings more than 15 years of experience in journalism, editing, content strategy and public relations, and holds a Bachelor of Journalism (Distinction) and postgraduate qualifications in Writing, Editing and Publishing. She was previously a Global Content and Media Manager for ABB, overseeing communications for the Fortune 500 company’s energy business worldwide. In Australia, Jacqueline has held senior editorial roles for the Queensland Government, the University of Queensland and John Wiley & Sons. Jacqueline brings considerable experience editing specialist technical content for authors with varied areas of expertise, both in Australia and internationally.

Tom is an experienced editor with particular expertise in editing and proofreading technical legal, financial and news content. Tom holds a Bachelor of Arts and Bachelor of Laws (Honours). He has training as a lawyer, and previously worked as a solicitor, following several years as an Editor at Pacific Transcription, where he was responsible for editing a wide range of academic, legal, financial and media transcripts.

Last Updated: 15/07/2021

Important Information

Keep in mind while exploring our content that Canstar is not authorised or registered to provide legal, tax or accounting advice. The content on this page and in Canstar’s related tax articles is not intended to provide – and should not be relied upon – for legal, tax or accounting advice from Canstar. Consider the information having regard to your own objectives, financial situation and needs. We recommend you seek advice from a qualified and registered (where applicable) tax accountant or other professional adviser before making any tax, financial or purchase decision.