Suggestions

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Improving Australian Income Tax brackets

The way the tax brackets work in Projection Lab doesn’t quite align with how tax is taken in Australia.

There is an income bracket that has a lump sum deducted from the amount + an amount taken for every dollar over the minimum of that bracket. e.g. income of $120,001 to $180,000 = $29,467 plus 37 cents for each $1 over $120,001

It would be great if this could be implemented to get the proper tax rate for an income.

Link to the official tax rates included

Related: www.ato.gov.au/rates/individual-income-tax-rates/

10 votes

Tagged as Suggestion

Suggested 29 May 2022 by user Chris A

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  • 29 May 2022 Chris A suggested this task

  • 30 May 2022 Kyle Nolan approved this task

  • avatar
    Kyle Nolan

    Looking at the gov.au site, to me that just seems like a way of expressing that the tax brackets are progressive. e.g. $5092 is just what you get when you take ($45k - $18,201) * 0.19… i.e., the total amount of tax so far before reaching the next bracket.

    The brackets in PL should already be computed like progressive tax brackets.

    So unless I’m missing something here, maybe we should close this one?

    Monday
  • avatar
    Lee

    I just did a very quick test to verify

    Salary - $100k

    Tax Projection Lab - $24,942 ATO Simple Tax Calc - $22,967

    Salary - $150k

    Tax Projection Lab - A$42,820 ATO Simple Tax Calc - $40,567

    So looks like PL is calculating correctly, it’s running a little high but that could be a difference in years? ATO is based on last FY. Either way I think it’s working as intended.

    Monday