Australia Self-Employed Tax Calculator 2024/25

Calculate your estimated Australia income tax and Medicare Levy liability as a self-employed individual or sole trader. Enter your income and allowable expenses to see your 2024/25 tax breakdown based on ATO Individual Tax Return rates.

About Australian Taxation

Understanding Your Taxes

Income Tax: Charged at 16% on taxable income from A$18,201 to A$45,000. Income from A$45,001 to A$135,000 is taxed at 30%, A$135,001 to A$190,000 at 37%, and above A$190,000 at 45%. These are the Stage 3 tax cut rates for 2024/25.
Medicare Levy: A 2% levy on your taxable income, charged on top of Income Tax, to fund Medicare (Australia’s public health system). Low-income earners (below approximately A$26,000) pay a reduced amount.
Tax-Free Threshold: The first A$18,200 of income is tax-free. You also receive the Low Income Tax Offset (LITO) of up to A$700, which phases out between A$37,500 and A$66,667.

Tax Reliefs & Offsets

Tax-Free Threshold: A$18,200 of tax-free income for all Australian residents who claim the threshold.
Low Income Tax Offset (LITO): Up to A$700 for taxable income under A$37,500. Phases out between A$37,500 and A$66,667.
Additional offsets may apply based on your personal circumstances.

This calculator provides estimates based on the 2024/25 Australian tax rates for sole traders. Tax rules and rates can change annually with government budgets. For professional advice tailored to your specific situation, consult with a registered tax agent or accountant.

Worked Example: Australian Freelance Copywriter — A$90,000 Income

Gross income: A$90,000 from freelance copywriting and content strategy
Allowable deductions: A$15,000 (home office A$4,020 at 67c/hr × 6hrs × 1,000hrs, equipment A$3,200, software A$1,800, travel A$2,600, professional fees A$1,680, phone & internet A$840, training A$860)
Taxable income: A$90,000 − A$15,000 = A$75,000
Tax-free threshold: First A$18,200 is tax-free (2024/25)
Income Tax: 16% on A$18,201–A$45,000 (A$4,288) + 30% on A$45,001–A$75,000 (A$9,000) = A$13,288
Low Income Tax Offset (LITO): −A$700 (applied as a tax credit for incomes under A$66,667)
Medicare Levy: 2% on A$75,000 = A$1,500
Total tax liability: A$13,288 − A$700 + A$1,500 = A$14,088
Take-home pay: A$90,000 − A$15,000 − A$14,088 = A$60,912
Effective tax rate: A$14,088 ÷ A$75,000 = 18.8%
Quarterly PAYG instalment: A$14,088 ÷ 4 = A$3,522 per quarter

On A$90,000 of freelance income with A$15,000 in deductions, you would owe approximately A$14,088 in Income Tax and Medicare Levy. If required to pay PAYG instalments, that’s around A$3,522 per quarter. If you miss claiming even A$1,000 of those deductions, your tax bill increases by approximately A$320 (at the 32% marginal rate including Medicare Levy).