How it works
GrossPay is designed to be smart. Instead of overwhelming you with complex tax rules and inputs you might not need, we adapt the interface and calculations dynamically based on your specific situation. Here is a look at how some of these smart features work under the hood.
Smart Medicare Levy Surcharge (MLS)
The Medicare Levy Surcharge is an extra tax penalty designed to encourage high income earners to take out private hospital cover. However, if you earn below the $97,000 threshold, you are completely exempt from this surcharge.
Rather than asking everyone if they have private health insurance, GrossPay intelligently monitors your adjusted gross income. If you earn below $97k, the calculator remains clean and simple. If your income crosses the threshold, a smart ticket automatically appears to help you calculate the exact penalty you will face at tax time if you do not have cover.
Because the income is below the threshold, the calculator remains completely clean. The MLS Ticket is hidden.
Because the income exceeds $97,000, the ticket dynamically appears. Try clicking "No Cover" below to see how it automatically calculates your exact penalty.
Medicare Levy Surcharge (MLS) Note
If you are above the $97k income threshold (and above the relevant age for dependent exemptions) and do not have appropriate private hospital cover, do you want to calculate the surcharge?
Estimated Surcharge at tax time: $1,500
Cash Flow Breakdown
Low Income Tax Offset (LITO)
The Low Income Tax Offset (LITO) is a tax reduction for individuals earning up to $66,667. The maximum offset is $700.
Unlike the Medicare Levy Surcharge which is assessed purely at tax time, the Australian Taxation Office (ATO) actually integrates the LITO directly into standard PAYG withholding schedules. This means if you are eligible for the LITO, your employer will automatically deduct less tax from your weekly paycheck!
Because of this, GrossPay seamlessly includes the LITO discount into your weekly breakdown so that your estimated net pay accurately reflects what lands in your bank account.
LITO Phase-out Curve
The offset remains at a maximum of $700 until you earn $37,500, after which it gradually reduces to zero.