Income Tax Rate For Australian Residents For the 2010 2011 Financial Year

The first bracket on income earners, earning lessequates to 22% tax.
than $6,000 have not seen any change from theThe fourth tax bracket ranges from $80,001 -
previous financial year and not tax will be$180,000. These income earners have gained in
deductible from your income if it is less thantwo ways from the previous financial year. The
$6,000. The next income bracket $6,001- $37,000first is from the tax of 15c in the dollar being
and for each dollar earned over $6,000 you willlifted to $37,000. This makes the lump sum of
pay 15c in tax. This bracket has changed fromtax owed $17,550. The second benefit is they are
the previous financial year with the upperonly required to pay 37c in the dollar in tax for
threshold lifted from $35,000 to $37,000. If yourincome above $80,000 where as in the previous
income is $37,000 you will pay $4,650 in taxfinancial year this was 38c.
(($37,000-$6,000) x 0.15).The fifth and final tax bracket is $180,001 and
The third tax bracket starts at $37,001 and endsover. On this income you will be charged a lump
at $80,000 (upper threshold is the same as insum tax of $54,550 plus 45c for each dollar over
previous financial year). This is where 30c in tax is$180,000. While the threshold has remained the
paid for every dollar earned over $37,000 plussame the benefits received by the lower income
the lump sum of $4,650. If you earn $80,000brackets are passed on (once again due to the
does this mean 30% of it goes in tax? No. Wesliding scale system employed) to the high income
must look at the sliding scale where the firstearners.
$37,000 of income incurs $4,650 of tax and theAustralians' are better off this financial year than
remaining $43,000 incurs $12,900 in tax.last and lets hope this additional income is used for
Therefore the total tax paid is $17,550 whichconstructive purposes!