Description

This article is from the soc.culture.australian FAQ, by Stephen Wales with numerous contributions by others.

8.4.2 Personal income tax

Here is a table of the most recent figures for Australia's personal income
tax rates.

Part of Your Income             Tax
      ($)             (cents in the dollar)
------------------------------------------
0       to 5400                 0
5401    to 20700                20
20701   to 38000                34
38001   to 50000                43
50001   & over                  47

(plus 1.4 cents in the dollar for MediCare levy)

Tax is taken out of each pay-packet you receive by your employer.
(You are called a PAYE taxpayer - Pay As You Earn).

Example: Suppose that you earn $44,000 a year. Income tax + medicare
levy is (20700-5401)0.2 + (38000-20701).34 + (44000-38001)*.43 +
44000*.014 = 3059.8 + 5881.66 + 2579.57 + 616 = 11520.83 + 616 =
$12136.83.

[AN: Need to check that medicare is over the whole amount]

 

Continue to:

• prev: 8.4.1 Total taxation
• Index
• next: 8.4.3 Corporate taxation [JB]