What Percentage Of Tax Do I Pay?

 Tax-Free Threshold

The tax-free threshold, currently standing at $18,200, allows individuals to earn income up to this limit without incurring any tax liability. However, beyond this threshold, progressive taxation kicks in.

Tax Offsets vs. Deductions

It’s crucial to differentiate between tax offsets and deductions. While deductions reduce assessable income, tax offsets act as a direct reduction in the amount of tax payable.

What’s Included in Assessable Income?

Assessable income encompasses various components, including employment income, super pensions, government payments, investment income, business income, foreign income, and crowd funding income. Each component contributes to the overall taxable income.

Allowable Deductions

Exploring allowable deductions unveils a spectrum of possibilities to reduce taxable income. From work-related expenses and managing tax affairs costs to gifts and donations, interest deductions, and personal super contributions – each category plays a pivotal role in shaping the final tax liability.

Taxable Income Strategies

Strategies to minimise taxable income involve sophisticated approaches, such as engaging in negative gearing investments or adopting a salary-sacrifice strategy into super. Understanding these strategies empowers taxpayers to optimise their financial positions within the confines of the tax system

Location: Melbourne VIC, Australia

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