Employment Cost Calculator for Australia
Calculate your complete hiring costs for Australia employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
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Employment Cost Breakdown
Select a country and enter a salary to see the employment cost breakdown
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Superannuation Guarantee (SG) | 12% | Employee's ordinary time earnings, capped at $62,500 per quarter. |
| Fringe Benefits Tax (FBT) | 47% | Grossed-up taxable value of non-cash benefits. |
| Pay As You Go (PAYG) Withholding | Employee's marginal tax rate | Employee's salary or wages. |
| Payroll Tax | Varies by state/territory | Total Australian taxable wages exceeding threshold (e.g., QLD: 4.75% for wages up to $6.5M, 4.95% over $6.5M). |
Filing & Compliance
- Superannuation Guarantee (SG): Payments due quarterly by 28 October, 28 January, 28 April, and 28 July.
- Single Touch Payroll (STP): Report salary/wages, PAYG withholding, and super information to ATO each pay run.
- Fringe Benefits Tax (FBT): FBT year ends 31 March. Returns and payments are due by 21 May (paper lodgment) or 25 June (tax agent electronic lodgment).
Australian Employee Tax Deductions in 2025
This summary explains the key tax deductions for employees in Australia during the 2024-25 financial year. Note that information is current as of today, 5 February 2025, and might change.
Income Tax
The Australian income tax system operates on a progressive scale, meaning higher earners pay a larger percentage of their income in tax. Tax rates for residents for the 2024-25 financial year are:
- 0%: Earnings up to $18,200
- 16%: Earnings between $18,201 and $45,000
- 30%: Earnings between $45,001 and $135,000
- 37%: Earnings between $135,001 and $190,000
- 45%: Earnings above $190,001
These rates do not include the Medicare Levy.
Medicare Levy
The Medicare Levy is a 2% tax on taxable income, which helps fund Australia's public health system. Most taxpayers are required to pay the levy. Certain thresholds and exemptions apply.
Tax Offsets
Tax offsets directly reduce the amount of tax owed. Several offsets are available, including:
- Low Income Tax Offset (LITO): For low-income earners, with a maximum offset of $700 for taxable incomes below $37,501 (for 2024-25). This offset phases out as income increases, and is not available for incomes above $66,667.
- Dependant Invalid and Carer Tax Offset: Up to $3,300 for taxpayers supporting a dependant with care needs. Income thresholds and abatement rules apply.
- Seniors and Pensioners Tax Offset: For eligible seniors and pensioners.
- Private Health Insurance Offset: Helps cover the cost of private health insurance premiums. The offset is income-tested and varies with age.
Work-Related Expenses
Many work-related expenses are deductible, reducing taxable income. Examples include:
- Home Office Expenses: A fixed rate of $0.67 per hour can be claimed to cover energy, phone, internet, and stationery costs. Alternatively, actual costs can be claimed for certain expenses, including decline in value of assets, repairs, and cleaning of a dedicated home office. Detailed records are required.
- Work-Related Travel: Travel costs for work purposes, including flights, accommodation, meals, and transport, are generally deductible.
- Car Expenses: Deductions can be claimed for work-related car use, using either the cents-per-kilometre or logbook method.
- Other Expenses: Union fees, professional subscriptions, and some work-specific clothing or equipment may also be deductible.
Key Dates and Obligations
- Tax Return Deadline: 31 October 2025
- Monthly PAYG Withholding: Ongoing throughout the year. Use the tax withheld calculator to ensure correct amounts are withheld.
- Single Touch Payroll (STP) Finalisation: 14 July 2025
- Fringe Benefits Tax (FBT) Return: 21 May 2025 (or 25 June 2025 if lodged electronically by a tax agent). FBT year ends 31 March 2025.
- Business Activity Statement (BAS): Lodged quarterly, with due dates on 28 October 2024, 28 February 2025, and 28 April 2025. Monthly lodging is also an option.
- Superannuation Guarantee (SG): Quarterly payments due on 28 January, 28 April, 28 July, and 28 October. The SG rate increases to 12% from 1 July 2025.
It is highly recommended to consult with a registered tax agent for personalized advice. They can provide guidance specific to individual circumstances and help maximize deductions.
