Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
communify2006(Dynamo)Dynamo
22 Jan 2025

What is my net tax payable plus Medicare Levy in the following scenario?

I'm over 65 years of age. My net taxable income for the 2024/25 fin year =$42000, comprising:

-salary and wages less deductions =$16300

-grossed up dividends = $5500

-franking credits of $1300

-the taxable untaxed component of a PSS pension = $20000

Calculation of net tax payable:

a. Tax on $42000 = $3808

b. Less franking credits of $1300

c. Less LITO of $475

d. Less 10% offset on PSS taxable untaxed component = 2000

e. Plus Medicare Levy of $840

Net tax payable of $33 plus Medicare Levy of $840 = $873

195 views
5 replies
195 views
5 replies

Most helpful response

Most helpful reply

MPrivate(Superuser)Superuser
22 Jan 2025

Hi communify2006

logic seems correct, but I didn't quite get to $42000 taxable

16300+5500 (grossed up means 1300 is included) + 20000=41,800

Are you also eligible for SAPTO?

Also test here if PSS offset is available


All replies

Most helpful reply

MPrivate(Superuser)Superuser
22 Jan 2025

Hi communify2006

logic seems correct, but I didn't quite get to $42000 taxable

16300+5500 (grossed up means 1300 is included) + 20000=41,800

Are you also eligible for SAPTO?

Also test here if PSS offset is available


communify2006(Dynamo)Dynamo
30 Jan 2025

Hi MPrivate,

Do you know if either LITO or the 10% offset on a PSS taxable untaxed pension can reduce the Medicare Levy or is it solely calculated as 2% of net taxable income?

BTW I'm not eligible for SAPTO but thanks for bringing it to my attention-I wasn't aware of it.

Featured articles

Tax tips for managing your side hustle

22 Apr 2024 · 6 min read time

Tax on gifts and inheritances

15 Apr 2026 · 5 min read time

How much tax should I pay on a second job? Claiming the tax-free threshold

15 Apr 2026 · 4 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3260 likes

  2. Taxduck

    (Taxicorn)

    2057 likes

  3. PayrollDeanne

    (Taxicorn)

    816 likes

  4. YellowPotato

    (Taxicorn)

    528 likes

  5. knaresbro

    (Devotee)

    364 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    10396contributions

  2. Taxduck

    (Taxicorn)

    4752contributions

  3. PayrollDeanne

    (Taxicorn)

    2056contributions

  4. YellowPotato

    (Taxicorn)

    1351contributions

  5. YEP

    (Devotee)

    837contributions

Loading
net tax payable after franking credits and tax offsets | ATO Community