Work out the average rate of Australian tax payable on your taxable income using the following formula:
Average rate of tax = (gross tax + Medicare levy + MLS − qualifying tax offsets) ÷ taxable income
The qualifying tax offsets you can use to work out your average rate of Australian tax are:
- spouse, child-housekeeper or housekeeper
- sole parent
- overseas forces or zone
- medical expenses
- invalid relative
- parent or spouse's parent
- certain low income taxpayer.
A description of these can be found in the Tax offsets sections of TaxPack 20021 and TaxPack 2002 supplement. Step 3 of the example shows you how to work out your average rate of Australian tax.