A Tax Question
 

Wondering if any one could please advise on this issue.
Whilst speaking to a work Colleague yesterday ,she stated that in Australia the tax is at 40% (she lived in Perth for a year.)
Is this true?
We are just about to go into pay negotiation and need to know so we can get a good deal.
Another gem she threw my way is that 40%(again) of Brits who go to Oz, fail and come back in their first year.
We just put our house on the market, trying not to cold feet.
Did wonder if she was jealous :confused:
Ps had to scrape the ice of the car today
thanks Kerrieee

Re: A Tax Question
 

The tax rates vary with income & the top rate is 47%, I seem to remember.

Regarding the 40% - what does she mean fail??? Considering the amount of money it's costing us for the visa, house sale, car sale, giving up good jobs - there's no way we're coming back

Re: A Tax Question
 

Just like in the UK, tax is a sliding scale based on your earnings. See www.ato.gov.au for details. It is higher than 40% for some salaries, but only on the part of the salary it applies to.

Can't answer her 2nd point but maybe ask her why she thinks they come back?

Cheers

Buzzy

Re: A Tax Question
 

Surely you mean www.ato.gov.au and not UK lol

Re: A Tax Question
 

I have sent you a personal email , and can send you a tax calculator. Don't let friends scare you. Lots of people stay, and love it and have a better life.

She does have her facts wrong that all pay 40% tax here.

$6,000 $0 15.0%
$21,600 $2,340 30.0%
$63,000 $14,760 42.0%
$95,000 $28,200 47.0%


Hope helps :) :) :) :) :)

Re: A Tax Question
 

Yes! Post edited, thanks.

Buzzy

Re: A Tax Question
 

Scotland, the figures above could be misleading. It looks like those who earn 28,200 to 95000 pay 47%, whereas I think you mean those who earn 95,000 pay tax of 28,200 plus 47% on the element above 95,000.

Could you clarify this?

Thanks

Buzzy

Re: A Tax Question
 

[QUOTE=scotland]I have sent you a personal email , and can send you a tax calculator. Don't let friends scare you. Lots of people stay, and love it and have a better life.

She does have her facts wrong that all pay 40% tax here.

$6,000 $0 15.0%
$21,600 $2,340 30.0%
$63,000 $14,760 42.0%
$95,000 $28,200 47.0%


Hope helps :) :) :) :) :)[/QUOTE
A BIG Thank you that was a Huge help :D
Kerrieeeee

Re: A Tax Question
 

Thanks for all your help with the tax question.
The reason she gave for people leaving was that the cost of living in Australia is high compared to many other countries, She said that households of migrants spent $930 per week supporting 3 people,
Any how must go to work and made some pennies
bye for now
Kerrieee
:)

Re: A Tax Question
 

That figure very much depends on your own personal financial situation, eg level of mortgage.

Cheers

Buzzy

Re: A Tax Question
 

Kerrieee,

It does not reflect the true situation if you just compare income tax.

UK National Insurance 11% ? - Aus Medicare 1.5% maybe ?

UK VAT is 17.5% - Aus GST 10%.

Aus petrol price currently around AUD 1.10 - 1.20 per litre.

How many free entertanments in UK ? Loads in Aus.

Property prices in Aus - generally much cheaper.

The list could go on and on.

You get the idea though........compare the package. :)

Re: A Tax Question
 

yes I better clarify:-

This might explain it better

0-5999-0% tax
6000-21599-15%
21600-63499-30%
63500-94999- 42%
95000 upwards-47%
Done on sliding scale so only pay 47% after 95000 on component of income over 95000
so
Tax on 63000 is 23.43%- $$14,760 .
Tax on $70,000 is 25.29% - $17,700

Hope this makes sense. Worked out on calculator I have on 2005 budget.

Re: A Tax Question
 

So true!!!!!!!!!!!!!!!

Re: A Tax Question
 

INCOME TAX

Someone earning the average wage of about $50,000 per year will pay $10,860 in tax, effectively 21.7% of the gross income. They will also pay the Medicare levy of 1.5%.

Some Examples of Tax calculations, for 2005/2006 are:

$10,000 gross = $ 600 tax (ie: 6.0% of gross)
$15,000 gross = $1,350 tax (ie: 9.0% of gross)
$25,000 gross = $3,360 tax (ie: 13.4% of gross)
$35,000 gross = $6,360 tax (ie: 18.2% of gross)
$45,000 gross = $9,360 tax (ie: 20.8% of gross)
$55,000 gross = $12,960 tax (ie: 23.6% of gross)
$65,000 gross = $17,160 tax (ie: 26.4% of gross)
$75,000 gross = $21,360 tax (ie: 28.5% of gross)
$85,000 gross = $25,710 tax (ie: 30.2% of gross)
$100,000 gross = $32,760 tax (ie: 32.8% of gross)
$200,000 gross = $79,760 tax (ie: 39.9% of gross) (So the OP's friend must be on $200k+ then ;) )

On top of these rates will be the 1.5% Medicare levy. If a single person earns more than $50,000, and DOES NOT HAVE private medical insurance, this will be increased to a 2.5% Medicare levy.


For 2006/2007 the basic tax rates are expected to be:
zero % on the first $6,000
15% on the next $15,600 (ie: between $6,001 and $21,600)
30% on the next $48,400 (ie: between $21,601 and $70,000)
42% on the next $55,000 (ie: between $70,001 and $125,000)
47% above that (ie: on the balance above $125,000)

Meaning the actual tax will be
$10,000 gross = $600.00 tax (ie: 6.0% of gross)
$15,000 gross = $1,350.00 tax (ie: 9.0% of gross)
$25,000 gross = $3,360.00 tax (ie: 13.4% of gross)
$35,000 gross = $6,360.00 tax (ie: 18.2% of gross)
$45,000 gross = $9,360.00 tax (ie: 20.8% of gross)
$55,000 gross = $12,360.00 tax (ie: 22.5% of gross)
$65,000 gross = $15,360.00 tax (ie: 23.6% of gross)
$75,000 gross = $18,960.00 tax (ie: 25.3% of gross)
$85,000 gross = $23,160.00 tax (ie: 27.2% of gross)
$100,000 gross = $29,460.00 tax (ie: 29.5% of gross)
$200,000 gross = $75,210.00 tax (ie: 37.6% of gross)

Re: A Tax Question
 

Its also worth remembering that you don't pay national insurance which would take the UK basic percentage upto around 30% of income.

Jo