Adjusted taxable income for you and your dependants 2025

What is adjusted taxable income

Your ATI is the sum of the following amounts:

• taxable income (excluding any assessable first home super saver released amount)
• adjusted fringe benefits total, which is the sum of both of the following
  • reportable fringe benefits amounts from employers exempt from fringe benefits tax under section 57A of the Fringe Benefits Tax Assessment Act 1986 multiplied by 0.53
  • reportable fringe benefits amounts from employers not exempt from fringe benefits tax under section 57A of the Fringe Benefits Tax Assessment Act 1986
• reportable employer superannuation contributions
• deductible personal superannuation contributions
• certain tax-free government pensions or benefits you receive
• target foreign income (income and certain other amounts from sources outside Australia you don't include in your taxable income or receive as a fringe benefit)
• net financial investment loss (the amount where the person's deductions attributable to financial investments exceeds their total financial investment income)
• net rental property loss (the amount where the person's deductions attributable to rental property exceeds their rental property income)
• less – any child support payments you provide to another person.

We use ATI to work out if:

• you can include a base amount in the zone or overseas forces tax offset (question T4)
• you can claim the invalid and invalid carer tax offset (question T5)
• your child is a dependant for Medicare levy purposes (question M1)
• you're eligible for government super contributions (question A3).

If you want to claim a tax offset at questions T4 or T5 and you have dependants, you'll need your and your dependants' ATI for the relevant period to work out:

• whether you're eligible for a tax offset
• the amount of your entitlement to any tax offset.

For the meaning of dependant and maintaining a dependant, see Tax time definitions.

Calculate your ATI

You can use either our Income tests calculator or Worksheet 1a and Worksheet 1b. If you use the calculator and have to either work out a dependant's ATI for part of the year or a deceased's ATI, you need to read these instructions.

Working out the ATI of a person for the whole year

If you're working out the ATI of a person for the whole year, you can get the amounts for worksheet 1b from the person's tax return. Table 1 shows you where the relevant amounts are on the tax return.

Table 1 – Working out ATI

For Worksheet 1b	The amount comes from
a	Taxable income or loss on page 4 in the tax return (excluding any assessable first home super saver released amount)
b	The sum of both of the following: question IT1 Total reportable fringe benefits amounts – label N in the tax return, multiplied by 0.53 and rounded down to the nearest dollar question IT1 Total reportable fringe benefits amounts – label W in the tax return
c	question IT2 Reportable employer superannuation contributions – label T in the tax return
d	question D12 Personal superannuation contributions – label H in the supplementary tax return
e	question IT3 Tax-free government pensions – label U in the tax return
f	question IT4 Target foreign income – label V in the tax return
g	question IT5 Net financial investment loss – label X in the tax return
h	question IT6 Net rental property loss – label Y in the tax return
j	question IT7 Child support you paid – label Z in the tax return

Working out a dependant's ATI for part of the year

If you're working out a dependant's ATI for part of the year, you can't use the figures from their tax return. Instead, you must work out the amounts for the relevant period and complete the calculator or worksheet using these figures. Follow the instructions at each tax offset question.

Completing a tax return for a deceased person

If you're completing a tax return for a deceased person, or your spouse died during the year and you need to know their ATI for the whole of 2024–25. Their ATI is the amount in the calculator or at row k in worksheet 1b:

• divided by the number of days the person was alive in 2024–25, and
• multiplied by 365.

This is the deceased person's ATI for the whole of 2024–25.

Working out a person's ATI for the relevant period

Determine the period where you need to work out the person's ATI (start date and end date). Cells in Dependant 1, Dependant 2 and Dependant 3 columns are left blank for you to fill in their details.

Worksheet 1a – Working out the start and end date for a person's ATI

	You	Dependant 1	Dependant 2	Dependant 3
The start date to work out the person's ATI	1/7/2024
The end date to work out the person's ATI	30/6/2025

Worksheet 1b – Working out a person's ATI for the relevant period

Row	Calculation	You	Dependant 1	Dependant 2	Dependant 3
a	The person's taxable income for the period (excluding any assessable first home super saver released amount) If taxable income is a loss, write 0 (zero)	$	$	$	$
b	The person's adjusted fringe benefits total for the period	$	$	$	$
c	The person's reportable employer super contributions for the period	$	$	$	$
d	The person's deductible personal super contributions for the period	$	$	$	$
e	The person's tax-free government pensions or benefits for the period	$	$	$	$
f	The person's target foreign income for the period	$	$	$	$
g	The person's net financial investment loss for the period	$	$	$	$
h	The person's net rental property loss for the period	$	$	$	$
i	Add all the amounts from rows a to h	$	$	$	$
j	Child support the person provides to a third party for the period	$	$	$	$
k	Subtract row j from row i. This is the person's ATI for the period.	$	$	$	$

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