Australia

Individual - Sample personal income tax calculation

Last reviewed - 16 December 2024

Year ended 30 June 2025.
Resident individual earning both Australian and foreign sourced income.
During the income year, the individual sold an investment property which had been held for greater than 12 months and realised a capital gain. There were no net capital losses carried forward from prior years. Prior to disposal, the individual derived rental income from the property, and incurred interest costs in connection with borrowings to acquire the property.
The individual has full private patient hospital cover for the entire income year, and therefore is not liable for the Medicare levy surcharge.

	AUD	AUD
Assessable income
Gross salary		110,000
Australian sourced rental income		11,700
Australian sourced interest income		500
Australian sourced dividend income:
Fully franked (net)	700
Gross up for franking credits (700 x 30/70)	300	1,000
Foreign sourced dividend income (gross of WHT of AUD 200)		2,000
Net capital gain on disposal of property:
Proceeds	180,000
Cost base	(150,000)
Gross capital gain (proceeds less cost base)	30,000
50% CGT discount	(15,000)	15,000

Total assessable income		140,200

Allowable deductions
Protective clothing		(300)
Interest and repairs on investment property		(5,250)
Charitable contributions		(150)

Total allowable deductions		(5,700)

Total taxable income		134,500

Tax on taxable income (4,288 + 30% x 89,500)		31,138
Medicare levy (134,500 x 2%)		2,690
Foreign income tax offset		(200)
Franking credit		(300)

Total tax payable		33,328

Lynda Brumm

Principal, PwC Australia

+61 (7) 3257 5471

Kevin Lung

Tax Partner, PwC Australia

+61 (2) 8266 7318

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