Whingin Pom

I have just been offered a job in Oz, won't go into details but its a bonsa job and I snapped it up. The question is, how do Aussies pay tax?

I mean in blighty we are all used to paying just over a third of our income to in ya face blatent theft, I mean tax,(income and VAT) and then another third in sneaky underhanded pickpocketing tax, (stealth), oh and the two hundred pounds a month NHS the average bloke pays and then can't get an appiontment because the surgury is booked for the next three weeks, sorry i'll stop.

Can my pay packet expect to take a good beating each time it comes around, or are the taxes not so harsh.

A good reply might help plan my income and were to live,
cheers.

ABCDiamond

Hi

Follow the taxation link on this web site
and don't forget to add the medicare levy, normally 1.5% but could be 2.5%. This replaces NHS.

and GST is only 10% here.

jayr

regrettably you will find that Australia taxes more than most, hera are the bands :

Anuual Income

0 -6000 0%
6001 - 21600 17%
21601 - 52,000 30%
52,001- 62500 42%
62501+ 47%

+1.5% for Medicare levy.

Work out your expected net monthly income, then divide bythe current exchange rate to see how much money you'll have. If this number is more than say 80% of your UK net monthly income then ou'll be on about the same money, taking cost of living into account (broadly)

RichS

Fella,

I warmed to your humour laden tones about the vicariousness of the Inland Revenue .

I look forward with vigour the manner in which you will heap fulsome praise on the ATO once you realise that in a pure taxation sense you were so so much better off in the UK.

Once you reach the giddy heights of paying 48.5% tax, anything you do anywhere attracts that tax.

e.g You earn $1000 - its taxed at 48.5%, so you get $485 in the hand.
You then put that money into a savings account. any interest you earn in that account gets walloped at 48.5% also.

Expand that across anything you do with your money and you'll get the genral idea.

The public at large are then told the way to avoid this is to buy up loads of property and run it as a loss making business.

So to sum up - Don't put any money in savings, but instead gamble on an artifically propped up property market.
Some would say there's an accident waiting to happen out there.

jayr

Wish it would, might be able to affford to buy the sort of house I rent then

Don

House prices look a bit toppy right now but given a) time and b) quite substantial net immigration into Australia for the foreseeable future, buying 'well' (location mantra) is surely a one-way bet.

Megalania

Which one-way?

Don

Hmmm, my views on UK housing mkt shifted quite substantially when I recently saw quite convincing data estimating UK population will grow to 67 million by 2020.

USA population has grown nearly 25% since 1980.

NZ took 30 years to grow from 3 million to 4 million but estimates generally see 5 million within 10 years.

Australia: same population growth is being seen.

It's happening - it's real. There's great political will to see continued high net immigration because the impact on the economy is so positive. Politicians get re-elected on economic performance above all else.

Supply and demand - a house in middle of nowhere is not likely to change in real value but desirable property in the right place will (over time) only trend upwards.

Megalania

This projection is based on the estimated resident population at 31 March 2003 and assumes growth since then of:

one birth every 2 minutes and 6 seconds,
one death every 3 minutes and 56 seconds,
a net gain of one international migrant every 3 minutes and 51 seconds leading to
an overall total population increase of one person every 2 minutes and 4 seconds (124 seconds).

[ 31,557,600 seconds / year x 1 person / 124 seconds = 254,496.8 people / year]

Australia Population Clock

Population 2051 millions:
Scenario A 31.4
Scenario B 26.4
Scenario C 23.0
[See link: "Population Projections, Australia" - BE won't link properly]

Personally, I find 20 million today sad, good for business but.

itsasecret

e.g You earn $1000 - its taxed at 48.5%, so you get $485 in the hand.
[/QUOTE]


No surely you mean " Any income over "x" amount of dollars is taxed at the higher rate..

So the above is only applicable if you earn over $61051 (jayr's figs.)??

MrsDagboy

Yes. Its correct, but worded a bit ambiguiously.

Wol

The maths is a bit off, too!

OzTennis

It's also the 'population time bomb' of ageing population, the dependent being a higher % and the economically active being a lower %, pension fund gaps and all that. Get some young, tax paying people in to give the economy a boost and to help cover the cost of all these old people essentially the view of governments. We might have to move them into the bush though - but that's another thread.

Having seen the council tax, fuel bills, road tax, TV licence, excise duty etc, etc rise by many times the rate of inflation (stealth taxes as someone said - notified by brown envelope someone else calls it) I wouldn't just focus on direct taxation rates in the UK and compare this to Australia. Total tax burden is what counts - so who has the comparative figures?

OzTennis

Whingin Pom

Whats this got to do with tax on my earning?
Who gives one if a baby pops every second?
What i was asking was relevant to my pay packet, thanks to the people who read this and replied with a relevant answer.

Don

Thread rage?