These income tax rates show the amount of tax payable in every dollar for each income tax bracket depending on your circumstances.

Find out about the tax rates for individual taxpayers who are:

• Residents
• Foreign residents
• Children
• Working holiday makers

Residents

These rates apply to individuals who are Australian residents for tax purposes.

Resident tax rates 2021–22

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

Resident tax rates 2020–21

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

See also:

• Medicare levy reduction – family income

Foreign residents

These rates apply to individuals who are foreign residents for tax purposes.

Foreign resident tax rates 2021–22

Foreign resident tax rates 2020–21

Children

If you are under the age of 18, and receive unearned income (for example, investment income), special rates apply.

See also:

• Your income if you are under 18 years old

Working holiday makers

These rates apply to working holiday maker income regardless of residency for tax purposes.

You are a working holiday maker if you have a visa subclass:

• 417 (Working Holiday)
• 462 (Work and Holiday).

Working holiday maker tax rates 2021–22

Working holiday maker tax rates 2020–21

Calculators

A simple tax calculator is available to help you calculate the tax on your taxable income.

The Income tax estimator gives you an estimate of the amount of your tax refund or debt, and takes into account:

• the Medicare levy
• higher education loan scheme repayments
• tax offsets
• tax credits.

Tax deducted from your pay

If you want to know how much your employer (or other payer) is required to withhold from payments to you, use our Tax withheld calculator.

Our other useful calculators include:

• Simple tax calculator
• Income tax estimator.

See also:

• Tax tables
• Your income if you are under 18 years old
• Individual income tax rates for prior years
• Video tax tips on atoTVExternal Link

If you need help applying this information to your personal situation, phone us on 13 28 61.

Check the progress of your tax return using our self-help services.

Most tax returns lodged online are processed within two weeks. We process paper tax returns manually and this can take up to 10 weeks (may take up to seven weeks to show on our systems).

If your tax return requires manual checks processing it may take longer.

On this page

• How to track the progress of your tax return
• Status of your tax return
• Email and SMS communications
• Why there may be a delay in processing your tax return
• Your notice of assessment

If you need to fix a mistake or have forgotten to include something in your tax return, see Correct (amend) your tax return.

How to track the progress of your tax return

The quickest and easiest way to check the progress of your tax return is by using our self-help services.

You can check:

• online using myGov
• using the ATO app
• by phone
• with your registered tax agent

Once your tax return processes, we’ll issue a notice of assessment that will show:

• tax you owe on your taxable income
• credit you have for tax already paid during the income year
• tax amounts you need to pay or will receive as a refund.

See also:

• Why you may receive a tax bill
• Help with paying

Check online using myGov

If you link your myGov account to the ATO you can check the progress of your tax return or amendments through your myGov account.

To check the progress of your tax return:

• sign in to myGovExternal Link
• select ATO from your member services
• from the home page select Manage tax returns
• then select the income year you are checking.

The status shows how your tax return is progressing.

If you don’t have a myGov account, it’s easy to create an account and link it to the ATO.

Check the progress in the ATO app

To check the progress of your 2020–21 tax return in the ATO app:

• login to the ATO app
• select Your tax return for 2020–21.

The status will be displayed on the screen within the ATO app. Use the help function for more information by selecting ‘?‘ from the top right-hand side of the screen in the app.

Check by phone

Use our self-help phone service at any time:

• phone 13 28 65 – have your tax file number handy
• choose option 1 and then option 1.

Check with your registered tax agent

If you lodge with a registered tax agent, you or your agent can check the progress of your tax return anytime by signing in to ATO online services through myGov or the ATO app.

Status of your tax return

When you check the progress of your tax return using our online services, you might see one of these statuses (not all tax returns will display all of these):

• In progress – Processing
  You may see this status at two stages of processing:  
  • we have received your tax return and we’ve started processing it
  • we have finalised your tax return and are issuing a notice of assessment (you will see an estimated assessment issue date by clicking the down arrow).
   
• In progress – Information pending
  We are collecting information to help us finish processing your tax return. We will contact you if we need more information.
• In progress – Under review
  We are manually reviewing your tax return to make sure everything is right before we finalise it. This may include reviewing your prior year returns. We will contact you if we need more information.
• In progress – Balancing account
  We are balancing the result of your tax return with your accounts with us and other Australian Government agencies and calculating the amount we will refund or you need to pay. We will contact you if we need more information.
• Issued – $ Amount
  You’ll be able to see your notice of assessment online, along with the date for payment and if you’re entitled to a refund.

If you provided valid Australian bank account details to us when you lodge, we will pay your refund directly into the bank account you nominate.

Email and SMS communications

We may send you an email or SMS (text message) to let you know:

• if your tax return or refund has been delayed and why
• when your refund is on its way.

Our messages will never ask you to reply by SMS or email to provide personal information, such as your tax file number (TFN).

Why there may be a delay in processing your tax return

Although most tax returns lodged online will be processed in two weeks, some tax returns may take longer to process. For example, if:

• you attempt to lodge your tax return again after previously lodging
• you have made an amendment before we finish processing your original tax return or any previous amendments
• you lodge tax returns for several years at once
• you are under an insolvency administration – for example bankruptcy or debt arrangement (check to make sure your insolvency practitioner advises us of your situation before you lodge your tax return)
• the Australian financial institution account details you included in your tax return are not current
• we need to check information in your tax return – we may need to contact your employer, financial institutions, private health insurers or you to confirm or cross-check information in your tax return
• we need to check information with other Australian Government agencies, for example, Services Australia, including Centrelink or Child Support – we’re required to pay part or all of your tax refund to other agencies if there are outstanding amounts (you will be notified if this was the case)
• you have a tax debt or previously unresolved tax debt with us
• you have a tax debt that was previously put on hold (also known as a re-raised or non-pursed debt) – see Using refunds or credits to pay debt.

If your tax return is delayed, you do not need to contact us. We will contact you if we need more information and will keep you or your agent informed of any ongoing delays.

If you think your circumstances put you under serious financial hardship review your eligibility to request priority processing.

Your notice of assessment

Once we’ve processed your tax return, we’ll issue your notice of assessment telling you if you will receive to a refund or that you have a tax debt to pay. You will also receive a tax receipt showing how your taxes have been allocated to key categories of government expenditure

If you have a myGov account linked to the ATO, your notice of assessment and tax receipt will be sent to your myGov Inbox. You will receive an email or SMS from myGov telling you that you have mail.

If you lodge your tax return by mail, your paper notice of assessment and tax receipt will be sent to the postal address we have for you.

Find out about:

• Why you may receive a tax bill
• Missing tax return refunds
  
  
  

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Businesses and government entities who make payments to contractors may need to report these payments and lodge a Taxable payments annual report (TPAR).

Contractors can include subcontractors, consultants and independent contractors. They can operate as sole traders (individuals), companies, partnerships or trusts.

A TPAR must be lodged by 28 August each year.

In this section

• Work out if you need to lodge a TPAR

Businesses may need to lodge a TPAR when they make payments to contractors for relevant TPAR services. Government entities may need to lodge a TPAR for payments for services and grants paid to people and organisations.

• Lodge your TPAR

See how to prepare and lodge your TPAR. Understand what contractor details you need to report and how to amend a lodged TPAR form.

Watch the introduction to the Taxable payments reporting system:

How contractors can meet their tax obligations

Contractors should:

• lodge tax returns by the due date
• include all income in the tax return
• lodge any tax returns for previous financial years as soon as possible
• lodge activity statements by the due date
• quote the correct and current Australian business number (ABN) on all invoices
• make a voluntary disclosure if a mistake was made on a previously lodged tax return. Penalties may be reduced when voluntarily disclosures are made
• keep records of all the income received and payments made. Keeping records of all business transactions helps to report income and claim deductions
• check that all other tax obligations are met.

How we use the information in a TPAR

We use the information in a TPAR to put income information into the online tax returns of contractors.

Why we collect contractor information

The TPAR system aims to:

• create a level playing field
• prevent dishonest operators from gaining an unfair advantage over the majority
• identify contractors who do not meet their tax obligations.
  
  
  

You can add to your super by entering into a salary sacrifice arrangement with your employer, making personal super contributions, transferring super from foreign super funds or you may be eligible for government contributions.

There are limits on how much you can contribute to your super each year.

Find out about:

• Salary sacrificing super
• Payment of super from foreign super funds
• Government super contributions (including co-contributions)
• Personal super contributions
• Downsizing contributions into super
• Tax on contributions

See also:

• Super contributions – too much super can mean extra tax

When completing your tax return, you’re able to claim deductions for some expenses. Most are costs you incur to earn your employment income. This information is available in other languages to help people from non-English speaking backgrounds. Select your language, then Individuals from the menu to access this information in your language.

On this page:

• Work-related expenses
• Other deductions
• Occupation and industry specific guides
• Managing your deductions

Work-related expenses

To claim a deduction for a work-related expense:

• you must have spent the money yourself and weren’t reimbursed
• the expenses must directly relate to earning your income
• you must have a record to prove it (usually a receipt).

If the expense was for both work and private purposes, you only claim a deduction for the work-related part. Work expenses your employer reimburses you for are not deductible.

If we think your employer may reimburse you for your expenses we may ask them.

You may be able to claim a deduction for expenses you incur that relate to your work, including:

• Transport and travel expenses
• Clothing, laundry and dry-cleaning expenses
• Working from home expenses
• Self-education expenses
• Tools, equipment and other assets
• Other work-related deductions

Employees (including casuals) can claim work-related expenses in the income year you incur them. This means if you start employment in June you can claim deductions for work-related expenses you incur in June. Even if you don’t receive your employment income until the next income year.

If you employ someone to assist you in your employment, generally you can’t claim a deduction for employing that person.

Other deductions

You may also be able to claim a deduction for:

• ATO interest – calculating and reporting
• Cost of managing tax affairs
• Gifts and donations
• Interest charged by the ATO
• Interest, dividend and other investment income deductions
• Personal super contributions
• Undeducted purchase price of a foreign pension or annuity
• Income protection insurance

Occupation and industry specific guides

Our occupation and industry specific guides provide information about income, allowances and deductions you can claim for work-related expenses.

Watch: Get your deductions right

This video shows how to get your deductions right.

Managing your deductions

You need to keep records for most expenses. Use the myDeductions tool in the ATO app to keep records of your work-related and general expenses in one place. It’s an easy way to capture information on the go and makes completing you tax return quicker.

You can use the myDeductions tool to:

• upload your records
• pre-fill your myTax return.

If you use a registered tax agent, you can share your records with them by emailing them a copy or they can access your uploaded records from their software management.

The myDeductions record-keeping tool helps you keep records for:

• all work-related expenses (including car trips)
• interest and dividend deductions
• gifts or donations
• costs of managing tax affairs
• sole trader expenses and business income
• other deductions.

Watch: How to add and review deductions in myTax

This video shows how easy it is to keep your records using myDeductions.

See also:

• Records you need to keep
• Employees guide for work expenses
• Income you must declare
• The sharing economy and tax
• Offsets and rebates
  
  
  

Definitions

Child

A child includes:

• your child
• your adopted child, stepchild or ex-nuptial child
• a child of your spouse
• someone who is a child of yours within the meaning of the Family Law Act 1975.

Dependant

There are three different categories of dependants:

1. Dependant for Medicare levy surcharge purposes
2. Dependant for Medicare levy or half levy exemption purposes
3. Dependent child for Medicare levy family income reduction purposes.

Dependant for Medicare levy surcharge purposes

A dependant for Medicare levy surcharge purposes is a person wholly or partly maintained by you who is:

• your spouse (of any sex)
• a child aged under 21 years
• a child aged 21 years to under 25 years who is a full-time student at a school, college or university.

Dependant for Medicare levy or half levy exemption purposes

A dependant for Medicare levy exemption purposes means a person who is:

• a spouse (of any sex)
• a child aged under 21 years
• a child aged 21 years to under 25 years who is a full-time student at a school, college or university and has adjusted taxable income of less than $1,786 for the year.

If both you and your spouse are in Medicare levy exemption Category 1 and you have dependent children who are not in any exempt category, one of you can claim a full levy exemption and the other a half levy exemption. You must complete a family agreement to nominate who will pay the half Medicare levy and keep it with your financial records.

Dependent child for Medicare levy family income reduction purposes

A dependent child for Medicare levy reduction purposes means a person maintained by you who is a child aged:

• under 21 years who is not a full-time student and whose adjusted taxable income is less than $1,786 for the first child or $1,410 for any additional child
• under 25 years and is a full-time student at a school, college or university and has adjusted taxable income of less than $1,786 for the year.

If you were not married on the last day of the income year or were married but living apart from your spouse, you must have received family tax benefit for that child or student for some part of the income year for them to be considered a dependant for family income reduction purposes.

Spouse

Your spouse is a person (of any sex) who:

• you are in a relationship with that is registered under a prescribed state or territory law, or
• although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple.

Spouse weekly income

If the income of your spouse consists solely of salary or wages, the amount to be taken into account is the gross weekly earnings before tax. If your spouse has income other than earnings (for example, share dividends), you must take into account the weekly equivalent of all their income. To obtain this amount, divide their estimated taxable income from all sources by 52.

Medicare levy – income for surcharge purposes

A person’s income for surcharge purposes for a financial year is the sum of their:

• taxable income including the net amount you have paid family trust distribution tax on (excluding any First home super saver released amount)
• exempt foreign employment income (if your taxable income is $1 or more)
• reportable fringe benefits as reported on your payment summary or income statement
• reportable super contributions (this includes both reportable employer super contributions and deductible personal super contributions)
• if you have a spouse, their share of the net income of a trust on which the trustee must pay tax (under section 98 of the Income Tax Assessment Act 1936) and which has not been included in their taxable income
• total net investment loss (this includes both net financial investment loss and net rental property loss).

If you were aged from your preservation age to under 60 years old, any taxed element of a super lump sum, other than a death benefit, which you received that does not exceed your low rate cap is excluded from your income for surcharge purposes.