LaLaLayla

Hi everyone, I've come from a non-TAX paying country (UAE) to Australia so I don't really understand the whole Income Tax thing.

Can someone please estimate what $150,000 would be after TAX?

Many thanks.

spuddyo

About $46,000 tax bill with Medicare Levi.

Pulaski

Look here. Looks like about AUD96k to me, including super.

[ETA: Apologies Spuddyo, I misread your post ]

LaLaLayla

Thanks @Pulaski, that site was very helpful.

ozzieeagle

Super isn't a tax though, so either the AUD 150,000 has 9.5 pct added to it, or the employer is being crafty in misrepresenting the compulsory 9.5 superannuation that all Australian employers have to pay staff in this country. So that 150,000 is actually circa AUD 136,000 and has been misrepresented as salary. The Employee doesn't pay the super the employer does, which is different to tax.

Adding compulsory super to one's Australian quoted package is taking advantage of people that don't know the local system. Happens a lot to potential overseas recruits and points to an employer that should be avoided.

So if I were the OP I'd be asking "What about the superannuation, don't you pay that by law?" Turning that AUD into what should be 165,000.


Potentially there is 30K missing here.

Post Courtesy your local Shop Steward

Can I sign the OP up if she gets it.

carcajou

I came up with about $106,000 take-home, not including Medicare.

Please read ozzieeagle's post above carefully to understand how Super works in this country. Super is not a tax.

Quoted $150,000 - most Australians would read that as $150,000, and then an additional 9.5% on top of that for Super, for $165,000 as ozzieeagle said.

Amazulu

No misrepresentation unfortunately. Salaries can include or exclude super - as long as whatever option is made clear

Economics 101 - someone earning $100k plus 9.5% super is actually earning $109.5k. Your cost to the employer is $109.5k (plus overheads and other socialist red-tape)

Nothing to see here

Amazulu

Shocking isn't it?

We pay way too much tax here - just so our government can waste it on red-tape, excessive welfare and employing far too many passengers (aka civil servants)

Someone earning $150k should be clearing at least $120k IMO

ozzieeagle

You've forgotten Payroll tax and Company tax as well that's a component on every employee, so that should be included if your philosophy re income is followed to the letter..... Also what about time off for holidays is that paid or not.... Public Holidays as well, do they get them all ?

If that 150K was paid as a salary by my employer, who never include super as a part of a salary quote, It would actually work out as a 180K+ package as our super is a lot higher.

So quoting salaries as whole packages in this country especially to overseas applicants that don't know our systems here is a bit of a sneaky move.

old.sparkles

Seems be similar to USA provided there is not city or state taxes to pay - Take-Home-Paycheck Calculator

NB - Just using the calculator with no real knowledge of US taxes.

Paying around a third of your income in taxes is fairly typical I would think - Australia isn't unique in that. I'm sure it was about a third (or more) in UK. I don't have a problem with that, nor with providing a safety net to those who are unable to work / cannot find work / etc. We all never know what is around the corner - redundancy, accidents, illnesses, etc. Providing a good welfare system is a measure of a good country in my opinion.

ozzieeagle

The superannuation component of a wage like quoted by the OP is a real complicating factor, especially if they are only here for a short term. IE: They could reduce their tax component by 1,000's by salary sacrificing into Superannuation and then cashing it in when they leave the country. Therefore if super is included in the above package the OP is going to have to use an accountant to sort it all out. Especially if it is a short term job..... That's another 1K of the top of the wage as well.

So I would be insisting if I were the OP on the employer making that super component on top, as we are approaching low 90's now in take home pay with all the payments you have to sort out yourself.

God help anyone attempting to do their own tax Forms first time round in this country.

Does the employer even run a Super Scheme, or is everyone there self employed ?

If they do run one, then why wasn't the wage quoted as 150k Plus super. Or should have been quoted as 135,750 AUD plus Super.

Amazulu

Again, if you are being paid $150k in salary and $30k in super, your real salary is $180k. This myth that super is some kind of extra on top of salary is just that - a myth

Payroll tax and other fruit is immaterial in this argument and I made a mistake in mentioning them

All money has an opportunity cost, so receiving $30k of your $180k income as super means that the opportunity to use that $30k for something else is lost

It is perfectly legal to advertise salaries that include or exclude super as long as this is stated clearly

Amazulu

I have no problem paying tax - as long as our governments don't waste it, which unfortunately they all do. They employ too many people and pay them too much for the output they produce. They give massive subsidies to people who don't deserve them - like windmill owners. I believe we should help the most needy in our society but we go much further than this with middle-class welfare and excessive tax credits. At the same time our governments don't spend enough to defend us properly and rely on America to do it instead (Trump had a point). All that wastage means we pay too much tax - cut government, cut taxes, economy grows, everyone benefits - economics 101

I believe everyone should pay tax. So every dollar we earn should be taxed (no $18k tax free allowance for instance) but the top rate of tax should be 20% maximum (say 2-5% at the bottom end). Corporation tax should be 10-20%. As consumption taxes are one of the most efficient forms of taxation, GST/VAT should be 20%. Everyone pays it - including the black economy

Hope this helps