Income Tax in Australia

In Australia, as in most countries, your average tax rate rises as you earn more.

For the tax year 2008/2009 the situation is as follows:

Income Tax Rates as Percentages

Taxable income	Tax Rate
$0 - $6,000	Nil
$6,001 - $34,000	15 percent
$34,001 - $80,000	30 percent
$80,001 - $180,000	40 percent
Over $180,000	45 percent

Income Tax Rates as Amounts

Taxable income	Tax Rate
$0 - $6,000	Nil
$6,001 - $34,000	15c for each $1 over $6,000
$34,001 - $80,000	$4,200 plus 30c for each $1 over $34,000
$80,001 - $180,000	$18,000 plus 40c for each $1 over $80,000
Over $180,000	$58,000 plus 45c for each $1 over $180,000

Australian Government criteria state that you are an Australian tax resident if you have:

1. always lived in Australia

or

2. moved to Australia and live here permanently

or

3. been in Australia continuously for six months or more and for most of the time you have been:
>>> in the one job and
>>> living in the same place

or

4. been in Australia for more than half of the financial year, unless
>>> your usual home is overseas, and
>>> you do not intend to live in Australia.

Medicare Levy

In addition to the above rates, a Medicare levy is deducted at 1.5 percent of your taxable income.

If you have a higher income and you do not take an appropriate level of private hospital cover, 2.5 percent of your taxable income is deducted as Medicare levy.