ABCDiamond

After reading that Tax rates are considered high in Australia, I did a comparison, based on average wages, and I got these results:

Average Wage in UK being £26,267.00 and in Australia being $49,000.00

Average wage
Tax and NI in UK = £6,908.00 being 26.30% of Gross Wage
Tax & Medicare in Australia = $11,607.00 being 23.69% of Gross Wage

When worked out on double the average wage, the results are:
Tax and NI in UK = £17,846.00 being 33.97% of Gross Wage
Tax & Medicare in Australia = $35,317.00 being 36.04% of Gross Wage

When worked out on Half the average wage, the results are:
Tax and NI in UK = £2,580.00 being 19.62% of Gross Wage
Tax & Medicare in Australia = $3,889.00 being 15.87% of Gross Wage

The result seems to be that the high wage earners do pay a slightly higher % in Australia, but those on lower than average wages pay a slightly smaller %. But overall, no major difference between the two countries.

Quinkana

Per capita tax take % is another useful measure. Considers all direct and indirect tax imposts on Joe Blow.

bondipom

Wish I was Kerry Packer and paid nout in tax.

Quinkana

Publishing and Broadcasting Limited - Financial Report to 2003 June 30

Total revenue: $2.2G
Profit: $500M
Tax @ 30%: $150M
Tax bottom line: $86M.

Kerry Packer (aka "Goanna") tax: who knows?

Why pay for magazine subscriptions when your company can claim them as a tax deduction?

gedge

Good work. With those comparisons we can't complain about the taxes so much.

Bix

Very interesting ABC.

Would be good if we knew and could compare all the indirect taxations too but guess thats a bit of a tall order.

The obvious one being UK VAT 17.5% against Aus GST 10%.

However there are also the less obvious gems like in UK the tax on insurance premiums and high tax on petrol, booze and cigs. The list is endless of course and no doubt they are over there too.

ABCDiamond

Lots of swings and roundabouts

No Tax on Insurance premiums here, just Stamp Duty instead !!

MrsDagboy

You sound like Mark Latham - "Its not a tax, its a levy!"

downunderpom

It's a bit much when you get told that you're getting a $1,000 bonus for signing the University's new Enterprise Agreement, and then find an extra $530 in your pay because it's been taxed at 47%.....

ABCDiamond

It's not much different to the UK really though...
UK top tax rate of 40% plus 11% Nat Ins = 51% deduction
or
OZ top tax rate of 47% plus 1.5% (or 2.5%) medicare levy = 48.5% or 49.5%

downunderpom

It's a rip-off in either country. Where's the incentive to work hard and progress? And what does all this tax go on? Jollies for the pollies and handouts for the bludgers! I doubt if HALF of the tax taken is used properly for the benefit of the taxpayers.

jayr

NI cuts off somewhere around the same salary level as the 40% marginal rate, or maybe now its set at 1% above that, so the marginal rate including NI does NOT reach 51%.

ABCDiamond

You are right on that, I didn't see it, as the NI is shown with weekly figures.

NI above £30,720 is at 1% making the top rate in UK only 41%.
The band below it is 33% including the 11% NI.

Quinkana

Paying more than a 30% marginal tax in Aus - the company tax rate - is just poor or slack management.

In fact paying more than 15% - the superannuation tax rate - is profligate.

bondipom

Just to muddy the waters there is no oz equivalent of ISAs or PEPs.