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Individual - Taxes on personal income

A resident individual is subject to Australian income tax on a worldwide basis, i.e. income from both Australian and foreign sources (except for certain foreign income and gains of temporary residents; see Capital gains under the Income determination section for more information).

A non-resident individual is liable to Australian income tax only on income (other than interest, royalties, and dividends, which are generally subject to withholding tax [WHT]) derived from sources in Australia, and certain statutory income that is taxable on a basis other than source (e.g. certain capital gains).

Australia has no surtaxes, alternative, or other income taxes on personal income.

Personal income tax (PIT) rates

The following tables set out the PIT rates that currently apply to resident and non-resident individuals for the year ending 30 June 2023. These rates and thresholds are planned to continue until 30 June 2024.

From 1 July 2024, a revised phase of tax cuts has been legislated to take effect. Under the new tax rate schedule the 19% marginal tax rate will be reduced to 16% and apply to taxable income between AUD 18,200 and AUD 45,000, a 30% marginal tax rate will apply to taxable income between AUD 45,000 and AUD 135,000, a 37% marginal tax rate then will apply up to AUD 190,000 after which the top marginal tax rate of 45% applies.


The following table applies to the 2022/23 and 2023/24 financial years, i.e. until 30 June 2024.

Taxable income (INR) Tax on column 1 (INR) Tax on excess (%)
Over (column 1) Not over  
0 ₹ 300,000 - 0%
₹ 300,000 ₹ 600,000 - 5%
₹ 600,000 ₹ 900,000 ₹ 15,000 10%
₹ 900,000 ₹ 1,200,000  ₹ 45,000 15%
₹ 1,200,000 ₹ 1,500,000 ₹ 90,000 20%
₹ 1,500,000 ₹ 150,000 30%

Note: This table does not include the Medicare levy of an additional 2% of taxable income, which applies to most residents. An additional Medicare levy surcharge of between 1% and 1.5% applies to certain higher income taxpayers not covered by health insurance for private patient hospital cover. Special rates apply to unearned income of children below the age of 18 years at year end where that income is more than AUD 416.

In addition, the above table does not include tax offsets, including the Low Income Tax Offset (maximum of AUD 700 for those earning up to AUD 37,500) that can apply to reduce the overall tax payable for those with taxable income up to AUD 66,667 (note that the Low and Middle Income Tax Offset does not apply after the 2021/22 income year).


2022/23 and 2023/24 financial years:

Taxable income (AUD) Tax on column 1 (AUD) Income tax on excess (%)
Over Not over
0 $120,000 - 32.5%
$120,000 $180,000 $39,000 37.0%
$180,000 $61,200 45.0%

Note: Non-residents are not required to pay the Medicare levy in Australia.

The above does not take into account any tax offsets that may apply.

Working holiday makers

Special income tax rates apply to a working holiday maker who is typically an individual holding a temporary working holiday visa or a work and holiday visa in Australia. The first AUD 45,000 of a working holiday makers' income (broadly, the assessable income derived from sources in Australia, less related deductions) is taxed at 15%, with the balance taxed at ordinary rates.


Is Australia a high tax country?
Australia's 2021 tax-to-GDP ratio ranked it 30th¹ out of 38 OECD countries in terms of the tax- to-GDP ratio compared with the 2022 figures. In 2021 Australia had a tax-to-GDP ratio of 29.5%, compared with the OECD average of 34.0% in 2022 and 34.2% in 2021.
Is tax higher in UK or Australia?
The UK and Australian Tax Systems: An Overall Comparison

Although income tax is generally lower in the UK (due to the progressive tax bandings), the Australian system includes a considerably lesser Medicare tax in comparison to the UK's National Insurance rates.

Why is tax so high in Australia?
The main reason Australia ranks so highly on individual income tax levels is because Australians don't pay separate social security taxes. These account for an average 25.9% of total tax revenue, or close to 9% of GDP, across the OECD.
Who pays most tax in Australia?
Commonwealth Bank, Westpac, ANZ and National Australia Bank were all in the top 10, paying a combined $8.2 billion in tax. Woolworths won the supermarket wars in 2021, paying $460 million in tax from revenue of $58 billion.
What is a good salary in Australia?
An Australian now requires more than $90,000 annual salary to lead an above-average lifestyle. With the cost of living increasing every year, understanding Australian salary trends has become important.
Is 125k a good salary in Australia?
This is a far cry from the $94,000 salary that the average Aussie earns, according to the Australian Bureau of Statistics. For 6.7 per cent of Aussies, $100,000 to $150,000 is enough to be considered wealthy, while just 2.6 per cent would be happy with $80,000 to $100,000.
Is $120000 a good salary Australia?
For those who are just starting out in their careers, $4,000 to $5,000 a month should be a reasonable expectation, while those with years of expertise in industries with intense competition should be paid more than $120,000. You should generally strive for a pay that is at least average.

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