[Doctor Who]

If I were offered a job in Australia so my gross income was about $200,000, does anyone know what the net salary would be and how that figure is arrived at? I can then have a look at rental prices and get some idea about what we could afford.

[ABCDiamond]

Tax Rates for the year 2009/2010
Taxable income : Tax on this income
$0 – $6,000 : Nil
$6,001 – $35,000 : 15c for each $1 over $6,000
$35,001 – $80,000 : $4,350 plus 30c for each $1 over $34,000
$80,001 – $180,000 : $17,850 plus 38c for each $1 over $80,000
Over $180,000 : $55,850 plus 45c for each $1 over $180,000
Therefore $200,000 = $55,850 + (20,000 x .45) = Tax total $64,850
plus Medicare Levy of 1.5% of 200,000 = $3,000

Tax + Medicare = $67,850
Net = $132,150 or $2,540 per week net. (approx)

If you do NOT have Private Medical insurance you would be charged another $2,000 per year in Medicare Surcharge.

[Doctor Who]

Thanks ABCDiamond. My net in Australia works out at £66,075 which is slighly better but very similar to the UK where the net is £65,311 on £100,000.

If I don't go for private insurance, my net in Australia falls to £65,075, slightly worse than the UK.

Of course, next year in the UK the personal allowance is scrapped for people earning £100,000+ and my net will fall to about £62,700. So tax wise, it looks like Australia's the better option, which is nice because it looks like a better option for most other things too.

[Richard]

I believe there will be a increasing gulf in wealth between Australia and the UK in the next few years. Any gap in wages there is today will grow, so moving to Australia won't be a bad move. In the years ahead the UK won't be able to pay its public sector workers as much as it does (relatively) today.

The UK government can't pay its bills, so this year the Bank of England's "quantitative easing" programme has printed over £7,000 for every UK tax payer and lent it to the government.

The UK's budget deficit this year looks like it'll be close to the £200 billion mark. The goverment has just announced its so-called "fiscal responsibility bill" aiming to cut this in half. That's a cut of about £100 billion in spending.

So how could a cut of £100 billion be achieved?

Closing down all the schools and universities would do it. £110 billion saved.

Or closing down all health care would do it. £110 billion saved.

Stopping all welfare spending would not quite do it - that's £96 billion.

The UK government's total spending this year will be £638 billion. A cut of £100 billion is a 16% cut in public spending. That's going to be very, very painful.

Funnily enough the government, while announcing a "fiscal responsibility bill" has spending projections showing even greater public spending in 2010 and 2011 than in 2009. More money for the BOE to print?

It's all going to end in tears IMHO.

http://www.ukpublicspending.co.uk/classic.html