Australia Freelance Tax Calculator 2024-25

As a general rule, Australian freelancers should set aside 25-35% of their gross income for taxes. This covers Income Tax and the Medicare Levy (2%).

Your exact amount depends on your taxable income. Those earning under $45,000 may need 18-22%, while those earning $45,000-$135,000 should set aside 30-35%. High earners (over $135,000) may need 40-47%. Use our calculator above for a personalized estimate based on your income and expenses.

The Medicare Levy is Australia's universal healthcare contribution. For 2024-25, it's a flat 2% of your taxable income, paid by most Australian taxpayers.

Unlike income tax which uses progressive brackets, the Medicare Levy is calculated at a fixed 2% rate on your total taxable income. For example, if your taxable income is $80,000, you'll pay $1,600 in Medicare Levy ($80,000 × 2%).

Low-income earners may be exempt or pay a reduced levy. High-income earners without private health insurance may also pay the Medicare Levy Surcharge (additional 1-1.5%).

The key Australian tax deadlines for 2024-25 are:

• 31 October 2025: Deadline to lodge your 2024-25 tax return (if lodging yourself)
• 15 May 2026: Extended deadline if using a registered tax agent
• PAYG Installments: Quarterly payments due 28 October, 28 February, 28 April, 28 July (if required by ATO)

If you're required to make PAYG (Pay As You Go) installments, the ATO will notify you and provide payment amounts based on your previous year's income. Missing deadlines can result in penalties and interest charges from the ATO.

Australian freelancers can claim work-related expenses that are directly related to earning your income, including:

• Home office expenses (portion of rent, utilities, internet, phone)
• Vehicle and travel expenses (business km, fuel, tolls, parking)
• Equipment and tools (computers, software, office furniture)
• Professional development (courses, conferences, memberships)
• Marketing and advertising costs
• Insurance (professional indemnity, public liability)
• Accounting and legal fees
• Depreciation on assets over $300

Keep detailed records and receipts for at least 5 years. The ATO may request evidence during an audit. For home office expenses, you can use the ATO's fixed rate method (67 cents per hour for 2024-25) or actual cost method.

You must register for GST if your business turnover is $75,000 or more per year (2024-25 threshold). You must register within 21 days of exceeding this threshold.

You can also voluntarily register for GST even if you're below the threshold. Benefits include claiming GST credits on business purchases, but you'll need to charge 10% GST on your taxable sales.

Once registered, you'll need to:

• Charge 10% GST on most goods and services
• Lodge Business Activity Statements (BAS) monthly, quarterly, or annually
• Keep GST records for 5 years
• Use accounting software or work with a registered BAS agent

Note: Some supplies are GST-free (e.g., most food, health, education) or input-taxed (e.g., residential rent, financial services).