Australian Income Tax

Tax Rates | Examples | Registration

In Australia your tax rate rises as you earn more.

For the tax year 2009/2010 the situation is as follows:

Income Tax Rates as Percentages 2009-2010

Taxable income Tax Rate
$0 – $6,000 Nil
$6,001 – $35,000 15 percent
$35,001 – $80,000 30 percent
$80,001 – $180,000 38 percent
Over $180,000 45 percent

For example, a salary of $50,000 would be taxed at:

0% on the first $6,000 = $0

15 percent on $6,001 – $35,000 = $4,350

30 percent on $35,001 – $50,000 = $4,500

Total tax levied on $50,000 = $8,850

Actual Taxes Deducted From Your Income

Taxable income Tax You Pay
$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 $35,000
$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

You can register for tax online when you arrive in Australia by following this link to get a Tax File Number.

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 buy enough private hospital cover, 2.5 percent of your taxable income will be deducted as Medicare levy.

You can register with Medicare one week after you arrive in Australia. (The delay allows time for Medicare to receive your details from the immigration authorities.) Go to a Medicare office with your passport. All going well, you will receive a Medicare card number and your card will be posted to you about 10 days later.

Medicare has webpages that explain the system for migrants.