oxford_lad

Just seen this on another forum:-

Example
On a gross taxable salary of $90,000 you would pay tax of:
$17,100 plus 40% of $15,000 (the portion over $75,000) which equals $23,100
Plus 1.5% of the lot ($90,000), for Medicate levy = $1,350
Giving a total tax bill of $23,100 + $1,350 = $24,450 (effective tax rate=27.2%)
Leaving take-home pay of $65,550
Or in weekly terms, $1,730 per week gross leaves you with $1,260 in your pocket.

Would this be correct?

Looking at these figures it would be a struggle to live in Sydney on $90k...

Please tell me these figures are wrong, could be about to burst my bubble

ExSmoggie

I'm afraid this is pretty much right. The 09/10 rate for $90,000 is slightly different to the example. It would be

$18,000 plus 40% of $10,000 (the portion over $80,000) which equals $22,000. The medicare calculation is still correct.

ABCDiamond

That's near enough right.

$90,000 Gross
$22,600 Tax and Medicare
$67,400 Net

Weekly Net $1,296.15 pw

ABCDiamond

It depends on what your accommodation costs are, as to if it is a struggle or not.

oxford_lad

was hoping to be renting in Manly area, so I guess around about $650/wk mark so could manage I suppose.

Pozz

I think that may have been a reply to my post on another forum.

The maths shocked me a bit too, so im frantically doing sums to see what I can afford.

oxford_lad

surprised me I must say, though my OH should be able to get work though.

Just abit worring if there's only one wage coming in for a while

Alfresco

Which is less than you would pay in the UK i.e. 28.73% on the same figure at 1.75 exchange rate.

http://www.thesalarycalculator.co.uk/salary.php

Alfresco

What about Super ABC and any other hidden deductions?

ABCDiamond

The Compulsory Super is not a deduction. That is paid by the employer, in the same way that the employer in the UK has to pay the 'Employer part' of the NI contribution.

Just ensure that you know what your actual gross salary is, and not just the salary package total figure, which may include all benefits you get.

There are no other deductions that I can think of. None that are compulsory, just Tax and Medicare.

freebo

Depends on what type of place you want to live in, but for someone without property (as I now am having sold my UK house), $90k does not seem a wonderful salary, if you want to rent near the CBD.

Having said that I have a preference for houses, this kind of unit is available for the kind of rent you're talking about, and looks OK, its still a big %age of your take home pay though http://www.domain.com.au/Property/Fo.../?adid=6607063

elice_in_oz

Just maybe the Medicare Levy Surcharge at the end of the financial year if you don't have private health insurance. Can't remember how much that is on top of the normal Medicare Levy

bcworld

1%.

So a single person on $90k with no private hospital cover would pay a total of $2250, not $1350.

elice_in_oz

That's what i thought... And that's another $900 in the government's pockets!
Still can't decide whether it's better to spend it on private health insurance though...

bcworld

Over the last couple of years my premiums have gone up from about $840 to $1070...that includes extras, and the only thing I ever claim is dental. As it stands, for me there's little difference between paying the surcharge or paying for the insurance...so insurance it is.