Discover your personal tax savings with our Income Tax Cuts Calculator for the Australia Federal Budget 2020/21. Quickly compare your income tax liability before and after the implemented changes, including the brought-forward Stage 2 tax cuts. Understand your annual and weekly savings from the government's initiatives to help Australians keep more of their earnings.
Formula:
This calculator compares the estimated income tax payable under the 2019-20 tax rates and thresholds with the 2020-21 tax rates and thresholds (which incorporated the brought-forward Stage 2 cuts). It also accounts for the Low and Middle Income Tax Offset (LMITO) and the Low Income Tax Offset (LITO) applicable to both periods to provide a comprehensive comparison.
- Taxable Income: Your gross income minus deductions.
- 2019-20 Tax: Estimated tax payable under previous rules.
- 2020-21 Tax: Estimated tax payable under new rules.
- Annual Tax Saving: The difference between the two.
- Weekly Tax Saving: Annual saving divided by 52 weeks.