Free 2020/2021 Income Tax Calculator & Video Explainer

Calculate your 2020/2021 Australian income tax in seconds with our free income tax estimator!

Below our tax explainer video, you will find our free income tax calculator. If you need to brush up on your tax knowledge first, consider watching the video.

Video: How Income Tax Works In Australia

Should I use this calculator for my tax return?

I wouldn’t do that. Tax can get complicated so this calculator makes assumptions that may not be appropriate for your situation. For example, it does not include capital gains, HECs repayments (for studying at uni), tax credits (e.g franking credits) or some offsets and rebates.

How can I pay less tax?

Avoiding tax in Australia is illegal, but there are ways to lower or minimise the amount of tax you pay (see the difference?).

Keeping record of your allowable tax deductions is the most obvious strategy to lower your tax, and you can weigh up the benefits of different tax ‘structures’ like companies, trusts, Superannuation and individuals, which can have different tax rates.

Our tutorial, How Income Tax Works In Australia, covers a lot of the important information. And our Franking Credits tutorial is a good one for Australian share and ETF investors.

The bottom line though is the best way to navigate the tax rules is to find a licensed tax professional in your area.

Investing for dividends or growth? Why not try both?

Successful long-term investing for dividend income and franking credits is a proven way to grow wealthy from your portfolio. If that sounds good to you, you should try our free online programs and courses, which will teach you the ropes of investing and everything else you need to know about shares, ETFs, valuation and budgeting for success.

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