To use the ATO calculator, some tips are to enter the correct taxable income amount and to know the exact residency status for tax purposes, notes ATO.gov. The official website of the Australian Taxation Office provides a link to this calculator for the purpose of figuring out the estimated tax on a taxable income.Continue Reading
By using the ATO simple tax calculators, Australian residents can find out if they are entitled to a refund or owe money to the government. To use the calculator, a person must enter the income tax year, taxable income and residency status. Taxable income is defined as gross income minus any allowable deductions. The residency status is useful for determining a taxpayer's tax-free threshold, notes ATO.gov. Taxpayers should know their exact residency status, as this also affects tax amounts. The website offers help for determining if a person qualifies as an Australian resident for tax purposes.
The ATO simple calculator only gives a tax estimate, which can be higher or lower than the actual tax amount paid by a taxpayer. This is because the calculator does not take into account factors such as the different types of tax offsets (seniors, low income tax, Medicare levy and others) that can significantly reduce the estimated tax figure calculated. Although the ATO simple tax calculator is a useful tool for tax estimation purposes, taxpayers can use the comprehensive tax calculator to figure the actual tax refund or debt owed. The comprehensive tax calculator, which is also available at ATO.gov, can also work out the Medicare levy and any other tax offsets that are applicable.Learn more about Taxes