Current year tax

Current year tax refers to the amount of income tax an individual or business is required to pay for the current financial year, based on their assessable income and applicable tax rates. In Australia, the tax year runs from 1 July to 30 June. The current year tax includes income from salaries, business profits, investments, and other sources, minus any allowable deductions or offsets. Employers typically withhold tax from wages through the Pay As You Go (PAYG) system, which contributes to the total tax owed. Understanding your current year tax obligations helps ensure accurate budgeting, compliance, and avoidance of penalties.