Scoops

Hope this helps to calculate your Oz taxation.

Gross Annual Income Tax Instalment Percentage
$0 - $6,000 Nil
$6,001 - $21,600 17%
$21,601 - $52,000 30%
$52,001 - $62,500 42%
$62,500 & over 47%


Cheers

Scoops

Jirrupin

Okay hands up

Whose had the calculator out working out their potential take home pay with these percentages

Don't worry if the figures don't add up, Lifestyle is free from taxation

OzTennis

How about for comparison the UK tax system - quoting from a nice pocket sized card from a firm of accountants which I keep in my wallet:

Personal Allowance Under 65 = £4,615

Tax on next £1,960 = 10%

Tax on next £28,540 = 20% (savings tax rate); 22% (non-savings rate)

Higher rate - taxable income over £30,500 (ie total income incl personal allowance of £35,115) = 40%

Then there's National Insurance - Class 1 (not contracted out) 12.8% payable on weekly earnings of over £89.01 (also Class 1a, 2, 3 and 4 for on benefits, self employed, voluntary, self employed on profits).

So, using an exchange rate of say $2.30 that's:

Income including personal allowance

0 to $10,615 = 0%

$10,616 to $15,120 = 10%

$15,121 to $77,253 = 20%/22%

$77,254 and over = 40%

This is just the tip of the iceberg for comparisons because there is national insurance (which I regard as an additional 12.8% tax), medicare levy, council tax vs rates, VAT vs GST, stamp duty etc to take into account. Not to mention exchange rate fluctuations.

It will be interesting to hear other comments and other people's sums.

OzTennis

OzTennis

Er... I go down to hire a tennis court and .... I have to pay (including VAT/GST) ..... I walk and I depreciate my trainers (gee you know I live in the UK when I don't call them runners ) which brings them closer to replacement, I drive to that lovely scenic spot and ..... Is there anything that it doesn't come back to money I ask - careful with your replies.

But, yep, important point that tax burdens, income levels and so on aren't all there is to life.

OzTennis

Jirrupin

Personally, I don't find complicated conversions and tax sums useful. If I was earning GBP and being taxed in Oz it may have some value. But for most of us we earn GBP and pay UK tax or we earn AUD and pay Oz tax.

In UK my salary was 30k I was taxed at 20 - 22%

In Oz (I can expect to earn, if ever, if lucky) $45k and I will be taxed at 30%

To have an equivalent income I would need to be earning (@2.3) $69k at which point I would be taxed at 47%.

None of these sums or conversions really helps determine what is in your pocket.

Even without tax I would be earning less money in OZ, but this statement will almost always be countered on this site by "yes, but it costs less to live there" And then double sunk by "yes but you come to Oz for the 'lifestyle' not to make money

PeteY

The income tax in Aus is higher than in the UK whichever way you look at it.

However....the net effect of all other taxes, means that you are taxed a lower % in Australia. To be honest....i think its all going to be pretty negligible, and even out in the long run.

Jirrupin

Dear OzTennis/Tennisoz,

I was being sarcastic, lifestyle definitely does have a price. Only it is not what everyone like to hear. They were selling a house in Melbourne on TV the other week it had a really nice view, the potential buyers were asked what price they would pay for the house they said the house was worth $400k, but the 'lifestyle (i.e the view from the patio) was worth another $200-300k.

Enzo&Chloe

If my calculations are right at a roe of 2.3

A$ 41,400 = A$2,665 net per month
£ 18,000= £ 1,160 net per month

ie you keep 77.24% in Australia and 77.30% in the UK.


Not a great deal in it.

Jirrupin

Everyone will have different calcs

mine would be UK salary 30k after tax take home£23,400

Oz salary $45k after tax $31500

$31,500 converted to £'s £13695.

This sum and all the others anyone will come up with are really just academic and have no real bearing on day to day expenditure. Because I am living in OZ paying OZ taxes and not earning pounds.

PeteY

Thats precisly why you need to take it as a % of your salary.

Donna....im not having a go....please don't take it that way...but you can't convert to pounds.

What Enzo and Chloe have done, is to take the amount of tax paid as a % of the annual salary. I.e...If you earn £18k or its dollar equivilent, you end up taking home 77% of the salary.

Sandra

With you on this one - and I am lucky and have a 'decent' job.

I wish every one coming over the best in the world - but however you do your calculations before you come - I will make a bet you have not factored in the

price of a 'real' house - not the ones you see on the web but the one you want to live in when you get here

price of the 'real' job - they pay less and even if you get 2.3 or whatever conversion, as points above you are then paying more tax on you 'bigger wage'

the loss of what you knew - it is start again in terms of information, before you had years of knowing the norm - now it is start again and not that many comparison to make decisions against. Best Mortgage, best credit card, best bank account, best savings plan, best schools - all that knowledge gone (no sign for poof up in smoke).

I was lucky - I am a payroll person and love facts and figures - I knew what I was getting into - did I hell as like!

I am here 20 months and loving things for many different reasons, but none of them is better job, better schools, better opportunity, better money, less hours, more sun, less mortgage etc etc.

Yes I am in Sydney - it is where the job is for me....but I came for a challenge and I am getting it in bucket fulls.

Ps I have a big house and a pool!!!!

Jirrupin

If you read my posts I have said repeatedly that there is no point converting to pounds/dollars, it wasn't me who began this game.

But converting to pounds/dollars is what we do when we are in the UK and percentages of wages/taxation or not, the only real answer to all this (as I have said before) is what is in your pocket at the end of the day.

But when you do convert the figures aren't nice are they. But the percentages are so much better

Sandra

but you do not get a job rate of exchange on salaries - you need to factor that in.

Cheers

PeteY

Certainly is not pretty....

I am *hoping* i will be lucky, and acutally earn more in Aus, as a geologist, my services are in theory in more demand down under. Geo jobs here in the uk are both low paid and hard to come by. I' am quite prepared to take any work i can find however, initially at least.

My wife on the other hand, will be taking a pretty substantial drop in pay....as she works in the financial sector. Saying that, she has a degree in psychology, and she thinks that she would like to pursue this when we arrive. It may be time for a change of career she thinks. Only time will tell.

Jirrupin

I wish you both the very best of luck, in OZ, I have no doubt you will have a fab time. I think psychologists earn decent wages here, they have been regulalry advertised in the last few months in Perth.