The Income Tax calculator rates are obtained from the Australian Tax Office’s “Schedule 1 Pay as you go (PAYG) withhold – Statement for of formulas for calculating amounts to be withheld” where the user has claimed the tax-free threshold with or without leave loading and have provided their TFN. It incorporates the Medicare Levy.
It assumes no Medicare levy is payable by a person whose taxable income for the year is $21,980 ($422 per week) or less. Where the taxable income exceeds $21,980 but is less than $27,475 ($528 per week), the levy is shaded in at the rate of 10% of the excess over $21,980. Where a person’s taxable income is $27,475 ($528 per week) or more, Medicare is levied at the rate of 2% of total taxable income.
Number of weeks or fortnights in a year
All months are assumed to be of equal length. One year is assumed to contain exactly 52 weeks and 26 fortnights.