Australia

Individual - Sample personal income tax calculation

Last reviewed - 20 December 2019

Assumptions

  • Year ended 30 June 2019.
  • 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.

Tax calculation

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 (20,797 + 37% x 44,500)   37,262
Medicare levy (134,500 x 2%)   2,690
Foreign income tax offset   (200)
Franking credit   (300)
     
Total tax payable   39,452