But which one to use for the best result?
Taxes have always been a burden on the middle class. The wealthy usually have dedicated tax and financial advisors to advise them on how to minimise tax and low-income earners often pay no tax at all – leaving working families and individuals to shoulder more than their fair share.
Most taxpayers have no idea how to accurately calculate what taxes they owe and what refund is due to them. Luckily there are a handful of online Australian tax calculators available which can help. Some are more accurate that others and some offer added services such as free tax advice.
Why Are Taxes Important?
Raising taxes are how governments earn most of their income to govern adequately. Taxes are therefore important to ensure a healthy economy and provide essential facilities and infrastructure like roads, hospitals, and emergency services and as such play a role in elevating living standards.
Every country has its own unique tax policy and legislation.
In developed countries taxes also aid citizens on low or no incomes (including those living below the poverty line) by proving social security payments. Centrelink, a large government department does this in Australia.
Australia uses a progressive tax system, when income increases taxes increase. Taxpayers earning less than $18,200 usually won’t have to pay any tax and at the top end those earning over $180,000 will l pay 45 cents in the dollar plus a 2% Medicare (health service) levy.
Why Would You a Need a Tax Calculator?
Tax calculators can help you work out the amount of tax you have to pay on your yearly income, and what tax refund, if any, you may receive. Tax refunds occur when the tax you owe the government is less than what you have already paid through your employer, or via your business during the year. The tax you need to pay can be reduced by claiming approved tax deductions (see below).
Given the complexity of the Australian tax system it’s very difficult if not impossible for the average person to calculate their tax position accurately and completely. Luckily there are a number of online tax calculators available to everyone, which are absolutely free.
What Is Tax Deduction?
A tax deduction is a legal way to reduce tax on your income. Deductions are costs incurred in earning a taxable income that are taken from your income before tax is calculated. But they must be approved by the Australian Tax Office (ATO) first.
Each country has its own policy regarding tax deductions, and the ability to use a given tax deduction differs between occupations. Australian tax legislation is thousands of pages long and constantly changes. To help, many taxpayers use online calculators to give them an idea of what refund they may receive or what they may have to pay.
What’s the Best Tax Calculator?
There are many online tax calculators operated by both the Australian government and the private sector. However, if you are from Australia and want the best result, then the Accountants Direct tax back calculator is your best bet.
The Accountants Direct user interface is simple-to-use and has been developed by experienced registered tax agents to be the most accurate and reliable tax calculator available. You can use this calculator to calculate your taxes in around 15 seconds.
After your tax estimate is calculated Accountants Direct will also send you a full list of tax deductions for your occupation. There are 200 occupations to choose from which is by far the most offered by any other provider; so, you can usually find your job type and get your free deductions list.
Final Verdict
Paying your fair and legal share of taxes is an important role that all taxpayers play to build a strong economy. Everyone should lodge their taxes accurately and on time.
Tax law is complex, so it can be difficult to calculate what amount of tax you need to pay. An online tax calculator will help, but a qualified experienced tax agent will be your best bet to get the optimal result.
Accountants Directs’ tax calculator is the most accurate available and can provide users with a full list of tax deductions for 200 Australian occupations quickly and easily.
