About Income Tax in OZ
Sep 23rd 2010, 10:36 am
#17
Lost in BE Cyberspace
Joined: Dec 2008
Posts: 6,039
Re: About Income Tax in OZ
God NO! If she is paying tax in another country then its got nothing to do with Oz.
And to simplify your question about tax. 33% will always go in tax. It doesn't matter what they call it. They can call it medicare, or ambulance tax, or federal tax or state tax.
I've worked all over europe and the US and now Oz, and the maths is always the same. Subtract a third from your gross pay. I don't care how they phrase it.
JTL
And to simplify your question about tax. 33% will always go in tax. It doesn't matter what they call it. They can call it medicare, or ambulance tax, or federal tax or state tax.
I've worked all over europe and the US and now Oz, and the maths is always the same. Subtract a third from your gross pay. I don't care how they phrase it.
JTL
Sep 24th 2010, 1:31 am
#19
Lost in BE Cyberspace
Joined: Dec 2008
Posts: 6,039
Re: About Income Tax in OZ
No, it's not that. Though I don't think they were just talking exclusively about really high incomes re the 33%...do you get 33% as well when you divide your tax into your gross salary?
Last edited by fish.01; Sep 24th 2010 at 1:33 am.
Sep 24th 2010, 1:39 am
#20
Almost more Oz than Pom
Joined: Aug 2010
Location: Brisbane northern suburbs
Posts: 1,154
Re: About Income Tax in OZ
Couple of points:
Super contributions are taxed at 15%, but this is done direct to the Government by the super company - as far as your personal income tax is concerned they are tax-free. But this only applies up to a set limit which varies with age: over 55 you can put more in tax-free and yet more again at 60+. Any contributions over that limit have to be made out of income which has been taxed. The current concessional limit for under 50's is $25,000.
So if you are earning $75,000 exclusive of the employer contribution, his contribution at 9% will be $6,750. That leaves $18,250 which you can put in yourself, and that will be taxed on entry at 15%. If you don't contribute it to super you will pay 30% tax on it. So if you can afford to save $18,250 a year from gross income you will pay $2,737 less tax on it.
As far as your wife's overseas earnings are concerned, if she is paying tax on her income in the country of origin she will, in most cases, be able to bring the net income back to Australia tax-free. If however she is working in a country where she does not have to pay tax (i.e. Saudi Arabia and other middle east countries) then unless she is working as part of a project approved by Austrade she will have to pay Australian tax on any money she brings back.
Disclaimer: I am not a financial or tax advisor, so don't rely on anything I say without checking it!
Super contributions are taxed at 15%, but this is done direct to the Government by the super company - as far as your personal income tax is concerned they are tax-free. But this only applies up to a set limit which varies with age: over 55 you can put more in tax-free and yet more again at 60+. Any contributions over that limit have to be made out of income which has been taxed. The current concessional limit for under 50's is $25,000.
So if you are earning $75,000 exclusive of the employer contribution, his contribution at 9% will be $6,750. That leaves $18,250 which you can put in yourself, and that will be taxed on entry at 15%. If you don't contribute it to super you will pay 30% tax on it. So if you can afford to save $18,250 a year from gross income you will pay $2,737 less tax on it.
As far as your wife's overseas earnings are concerned, if she is paying tax on her income in the country of origin she will, in most cases, be able to bring the net income back to Australia tax-free. If however she is working in a country where she does not have to pay tax (i.e. Saudi Arabia and other middle east countries) then unless she is working as part of a project approved by Austrade she will have to pay Australian tax on any money she brings back.
Disclaimer: I am not a financial or tax advisor, so don't rely on anything I say without checking it!
Sep 24th 2010, 3:14 am
#21
Gone Senile Member
Joined: Sep 2001
Location: Sydney
Posts: 3,014
Re: About Income Tax in OZ
A tax earner of $80K taxable is just under 20% tax
Sorry I am not sure I understand the question your gross salary could also contain non taxable items which would skew the result.
Sep 24th 2010, 9:12 am
#23
Lost in BE Cyberspace
Joined: Dec 2008
Posts: 6,039
Re: About Income Tax in OZ
The average 33.3% of taxable gross is a rule of thumb - really high tax earners in Aus eg $1M taxable gross are going to be paying around 42%.
A tax earner of $80K taxable is just under 20% tax
Sorry I am not sure I understand the question your gross salary could also contain non taxable items which would skew the result.
A tax earner of $80K taxable is just under 20% tax
Sorry I am not sure I understand the question your gross salary could also contain non taxable items which would skew the result.
Last edited by fish.01; Sep 24th 2010 at 9:16 am.
Sep 24th 2010, 2:34 pm
#24
Forum Regular
Thread Starter
Joined: Jan 2009
Posts: 48
Re: About Income Tax in OZ
Couple of points:
Super contributions are taxed at 15%, but this is done direct to the Government by the super company - as far as your personal income tax is concerned they are tax-free. But this only applies up to a set limit which varies with age: over 55 you can put more in tax-free and yet more again at 60+. Any contributions over that limit have to be made out of income which has been taxed. The current concessional limit for under 50's is $25,000.
So if you are earning $75,000 exclusive of the employer contribution, his contribution at 9% will be $6,750. That leaves $18,250 which you can put in yourself, and that will be taxed on entry at 15%. If you don't contribute it to super you will pay 30% tax on it. So if you can afford to save $18,250 a year from gross income you will pay $2,737 less tax on it.
As far as your wife's overseas earnings are concerned, if she is paying tax on her income in the country of origin she will, in most cases, be able to bring the net income back to Australia tax-free. If however she is working in a country where she does not have to pay tax (i.e. Saudi Arabia and other middle east countries) then unless she is working as part of a project approved by Austrade she will have to pay Australian tax on any money she brings back.
Disclaimer: I am not a financial or tax advisor, so don't rely on anything I say without checking it!
Super contributions are taxed at 15%, but this is done direct to the Government by the super company - as far as your personal income tax is concerned they are tax-free. But this only applies up to a set limit which varies with age: over 55 you can put more in tax-free and yet more again at 60+. Any contributions over that limit have to be made out of income which has been taxed. The current concessional limit for under 50's is $25,000.
So if you are earning $75,000 exclusive of the employer contribution, his contribution at 9% will be $6,750. That leaves $18,250 which you can put in yourself, and that will be taxed on entry at 15%. If you don't contribute it to super you will pay 30% tax on it. So if you can afford to save $18,250 a year from gross income you will pay $2,737 less tax on it.
As far as your wife's overseas earnings are concerned, if she is paying tax on her income in the country of origin she will, in most cases, be able to bring the net income back to Australia tax-free. If however she is working in a country where she does not have to pay tax (i.e. Saudi Arabia and other middle east countries) then unless she is working as part of a project approved by Austrade she will have to pay Australian tax on any money she brings back.
Disclaimer: I am not a financial or tax advisor, so don't rely on anything I say without checking it!
Sep 25th 2010, 2:50 am
#25
Guest
Posts: n/a
Re: About Income Tax in OZ
Obviously this only applies if yours is allowable as a tax deduction.
Sep 25th 2010, 11:07 am
#26
Forum Regular
Thread Starter
Joined: Jan 2009
Posts: 48
Re: About Income Tax in OZ
how to determine whether my transport allowance is allowable to be as a tax deduction?
Oct 10th 2010, 4:12 am
#27
Forum Regular
Thread Starter
Joined: Jan 2009
Posts: 48
Annual Transport Allowance is included in the taxible income?
Annual Transport Allowance is included in the taxible income?
Oct 10th 2010, 12:26 pm
#29
Home and Happy
Joined: Dec 2002
Location: Keep true friends and puppets close, trust no-one else...
Posts: 93,814
Re: About Income Tax in OZ
I've merged your threads together as it makes them easier to follow and answer.
