The tax you will pay

The effective income tax rate in Australia is generally quite low compared to other countries around the world.  Below are tables of the tax rates that apply to individuals for the financial year (2007-2008):

Residents of Australia

 Taxable income  Tax on this income (AUD$)
 0 – 6,000 Nil
 6,001 – 30,000 15c for each dollar over 6,000
 30,001 – 75,000 3,600 plus 30c for each dollar over 30,000
 75,001 – 150,000   17,100 plus 40c for each dollar over 75,000
 151,000 and over 47,100 plus 45c for each dollar over 150,000

Non-residents of Australia

 Taxable income Tax on this income (AUD$)
 0 – 25,000 29c for each dollar
 30,001 – 75,000 8,700 plus 30c for each dollar over 30,000
 75,001 – 150,000   22,200 plus 40c for each dollar over 75,000
 151,000 and over 52,200 plus 45c for each dollar over 150,000

The above rates do not include the Medicare levy of 1.5%.  This is the cost to fund healthcare in Australia.

For those on higher incomes it is important to keep in mind that from July 1 2008 the 40 per cent threshold will increase from AUD$75,001 to AUD$80,001, and the 45 per cent threshold from AUD$150,001 to AUD$180,001.  Therefore, from the start of the next financial year a person on AUD$100,000 a year will be $1,250 a year, or $24 a week, better off.

To find out more information on tax rates in Australia, click here to view the Australian Taxation Office's website.

To speak with one of our experienced Australian consultants, please contact us on aus@globalcareerlink.com.

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