hopefuls

hi would anyone know how much tax you have to pay in oz?
is it the same as uk?
if anyone has any links to how to find out it would be appreciated
thanks

ex_exile

http://www.ato.gov.au

Would be the place to start

Wendy

The bottom table is this years: http://www.ato.gov.au/individuals/co...u=5053&mfp=001

smee

Here is a link to a tax calculator.

http://calculators.ato.gov.au/script...xcalc/main.asp

hawkshaw

I'm on exactly the same income here as I was in the UK, but the tax here is substantially higher - almost $6,000 a year in my case. That's because tax free pay in Oz is limited to a paltry $6,000 and the rates of tax are higher too 15%, 30% and 40%, compared to 10%, 22% and 40% in the UK.

However, houses (at least here in regional Victoria) are a third of UK prices, petrol about half the price, eating out a quarter of the price. Tradesmen are cheaper too, and actually turn up on time to do the job!

Oh and there's more space and fresh air, less traffic, better weather (apart from the lack of rain)

Swings and roundabouts really.

smee

The highest tax bracket is 47%. Also if you earn more than $50,000 for a singel $1000,000 for a couple you have tp apy an additional medicare levy of 1% or take out private helath insurance and still pay the basic medicare levy.

hawkshaw

Luckily (or unluckily perhaps), I'm not yet in those brackets!

MartinLuther

I think it's a mistake to just compare the advertised rates. You have to include NI and Medicare to make a better comparison.

So UK 10%, 22% and 40% are actually 22%, 33% and 41%. (Note that this is for normal employees. Self-employed people get a better deal.)

And Aus 15%, 30%, 40% and 45% are 16.5%, 31.5%, 41.5% and 46.5%, plus the extra 1% medicare levy described above.

Fairly much up to about $80k, you're actually paying less tax in Aus than in the UK (although it's not a huge difference). Those on higher salaries are taxed more in Aus but are compensated by the amounts going into their personal super. (The UK equivalent goes into a common pot.)

Also, although the tax free amount in Aus is $6k, there is something called the low income tax offset. This means that anyone on less than $11k pays no tax. Between $11k and $40k you get part of the offset and over $40k you don't get it. This is Aus' way of getting around the effect that raising the tax free threshold benefits the rich more than the poor.

hawkshaw

Adding NI to the factor only applies if you are working. In my case, I do pay more tax in Oz because being over 60 and receiving a UK occupational pension, I didn't pay NI in the UK but have to pay Medicare here. And don't forget that those NI contributions are partly to fund your UK State Pension, whereas as far as I know none of the Medicare levy funds the Australian pension.

We could open up a whole new debate under the premise that health costs beyond Medicare's limits constitute another yet another tax, of the 'stealth variety'.

If you don't have the benefits of private health insurance or bulk billing, every consultation with a doctor costs at least $25 and you don't get the benefit of UK prescription charges. Even a simple dental inspection costs almost $100. (Yes, I know you can claim a tax offset if your medical expenses are over the threshold).

MartinLuther

I agree with what you are saying. In my post I tried to make it clear that what I was saying applies to normal employees. In your case you are definitely worse off tax wise.

Note that the NI consists of 2 components. There's the employee's contribution (11% on the amount earned between the tax free threshold and the upper tax threshold. 1% on amount over the top threshold) and the employer's contribution (12.8% of the employee's wages over the tax free threshold). This money pays for both health and pensions. In Aus the employer's contribution goes into the employee's super fund (less 15%).

The age pension in Aus is paid out of normal taxes. Although something called the Future Fund has been set up to pay pensions in the future. The Aus age pension is means tested as compared to the UK's pension which is contributions tested (or means tested if you've not made enough contributions).

Why do people know about their employer's 9% super contribution and not the 12.8% employer's NI? The first lot goes into their own pocket; the second lot goes to the government.

NedKelly

It's not swings and roundabouts at all. You are much better off here than in the UK. You sound like a whinging pom.

hawkshaw

With respect, Mr Kelly, unless you have access to my accounts and tax file number, you are not qualified to assess my financial position.

My statement that I pay more tax here on exactly the same income is true. As for whinging pom, well you can think what you like but regarding 'swings and roundabouts' you might have noted that I did counter my comment about the adverse tax aspect by giving examples of some things that are cheaper here.

For what it's worth, I love this country and its people - I happen to be married to an Australian. However that doesn't mean I have to love the tax/Medicare system.