Adjusted Taxable Income (ATI) determines eligibility for offsets, Medicare levy, family assistance, and super contributions per ATO income tests. ATI exceeds taxable income by adding reportable fringe benefits (x0.53 for exempt employers), employer super contributions, tax-free pensions, target foreign income, net investment/rental losses—less child support paid. Use ATO's Income tests calculator for verification.
TABLE OF CONTENTS
- Example A: Interest, Dividends, and Trust Distribution
- Example B: Net income from Business
- Example C: Net Rental Property Loss calculation
- "Estimated total income" and "Estimated total"
Example A: Interest, Dividends, and Trust Distribution
This person only has interest, dividends and trust distribution – taxable income = $172,357
Adjusted taxable income is showing as $622,874,
Example B: Net income from Business
Adjusted taxable income" is the "Net income from business this year"
Total business income ($728,707) minus expenses ($660,555) = net $68,152 ATI.
Example C: Net Rental Property Loss calculation
Wages $104,657 + interest $251 - deductions $2,586 + net rental loss $11,552 = ATI $102,322 (losses add to ATI).
"Estimated total income" and "Estimated total"
Estimated total income is the gross income from all sources less certain deductions, such as expenses, allowances and reliefs. If you are married or in a civil partnership and jointly assessed, your spouse's or civil partner's income is included in total income.
Estimated total is the sum of all the received income from the following:
