Tax Blogs

What is adjusted taxable income?

June 7, 2021

Adjusted taxable income in tax returns is needed to determine whether you need to pay for things like Medicare Levy Surcharge.

Your adjusted taxable income (ATI) affects your entitlement to certain tax offsets.

Generally, your ATI is the sum of the following amounts:

  • taxable income (your assessable income minus deductions)

  • adjusted fringe benefits total, which is the sum of:

    • reportable fringe benefits amounts received from employers that are exempt from fringe benefits tax, multiplied by 0.53 (marked with an X on your payment summary), and

    • reportable fringe benefits amounts (on your payment summary’s) from employers that are not exempt from fringe benefits tax 

  • tax-free government pensions or benefits (includes disability pensions, carer payments and defense pensions)

  • target foreign income (includes any income earned from overseas that is not already included in your taxable income or received in the form of a fringe benefit)

  • reportable super contributions (includes both reportable employer super contributions from your employer/s and personal super contributions you claimed a deduction for)

  • total net investment loss (includes both net financial investment loss and net rental property loss)



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Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.


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