JettWorth uses the current Australian tax rates to estimate your income tax, so projections reflect real take-home pay.
Income tax basics
Australia uses a progressive tax system. You pay different rates on different portions of income:
| Income bracket | Tax rate |
|---|---|
| $0 – $18,200 | 0% (tax-free threshold) |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 and above | 45% |
These are the FY2025-26 rates. JettWorth updates rates when new brackets are legislated each 1 July.
What JettWorth calculates automatically
When you enter your gross income, JettWorth computes:
- Income tax using the progressive brackets above
- Medicare levy (2% of taxable income, with low-income thresholds)
- HECS / HELP repayments if you have a HECS debt
- Low-income tax offset (LITO) — applied silently, never shown as an acronym in the UI
- Total tax percentage — your overall tax as a percentage of gross income. Hover the (i) icon for an explanation of how this differs from the rate on your next dollar earned (your marginal rate).
How tax works in projections
The projection engine recalculates tax for every simulated year. As your income grows (salary increases, additional income streams), your tax adjusts.
This means projected take-home pay accounts for bracket creep — the effect of inflation pushing you into higher tax brackets over time.
Capital gains tax (CGT)
When you add a "sell property" or other realisation life event, JettWorth estimates capital gains tax on the profit:
- 50% CGT discount applied for assets held longer than 12 months
- The remaining gain is added to your income for that year
- The total is taxed at your marginal rate including any bracket changes
Negative gearing
For investment properties, rental losses (interest + expenses minus rent) offset your wage income at your marginal rate, lowering tax owed and freeing cash flow. JettWorth applies this automatically when an investment property is in net loss.
Note: Tax calculations are estimates based on current legislation. They don't account for every possible deduction or offset. For personalised tax advice, consult a registered tax agent.