| As the old saying goes, there is nothing certain in | | | | Now we will explain this a bit further, and show |
| life except for death and taxes. The same is true | | | | how the above tax rate would be applied to the |
| for those living in Australia as well. Sunny weather, | | | | annual income. For example, you are now living in |
| spacious surrounding, beautiful environments are all | | | | Australia and you earn $40,000 a year. To begin, |
| big magnets for immigration. But many people | | | | the first $6000 dollars of the $40,000 will not be |
| who think about living in Australia are curious to | | | | subject to taxes. The second part of your |
| know how much income tax they would have to | | | | income, the part that starts at $6001 and ends at |
| pay. | | | | $35,000 will be taxed at the rate of 15%. The |
| As with most of the civilized world, calculating | | | | remaining $5000, the part of your salary that is |
| income tax can be quite complicated. As a general | | | | from $35,001 till $40,000, will fall within the 30% |
| rule in Australia, taxes rise the more you earn. For | | | | tax rate. |
| the sake of simplifying we will break down the | | | | In addition, take into consideration that when living |
| tax rates into simple terms so even non - | | | | in Australia one is subject to a 1.5% Medicare tax |
| accountants can estimate how much income tax | | | | on top of the standard income taxes listed above. |
| they would have to pay were they living in | | | | New immigrants are eligible to register for |
| Australia. | | | | Medicare one week after arrival in Australia, |
| At the date of this publishing the taxes required | | | | provided passports are in order and there are no |
| to be paid in Australia according to the annual | | | | other issues. The Medicare card will usually be |
| salary are as follows: | | | | received about two weeks after applying. |
| - 0 - $6000 0% | | | | Income taxes are always troubling and confusing |
| - $6001 - $35,000 15% | | | | issue. However, as we have shown, the laws are |
| - $35001 - $80,000 30% | | | | pretty straight forward and figuring them out |
| - $80001 - $180000 38% | | | | should not be a deterrent for anyone planning on |
| - $180000 - above 45% | | | | living in Australia. |