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Whats my pay? AU

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Australia Income Tax Rates

Australian income tax is levied at progressive tax rates. The lowest bracket is 0%, known as the tax-free rate for individuals on low incomes. Tax rates increase progressively up to 45% for incomes over $180,000. In addition to tax there are additional levies for Medicare. Individuals on incomes below $18200 are also entitled to a Low Income Tax Offset (LITO). Refer to the table below for the 2017 – 2018 income brackets:

 
Taxable income Tax rate
0 – $18,200 0%
$18,200 – $37,000 19%
$37,000 – $87,000 32.5%
$87,000 – $180,000 37%
$180,001+ 45%

Which means Income x Tax
0 – $18,200 = $18,200 x 0% = 0
$18,200 – $37,000 = $18,800 x 19% = $3,572
$37,000 – $87,000 = $50,000 x 32.5% = $16,250
$87,000 – $180,000 = $93,000 x 37% = $34,410
$180,000+ (AB) AB x 45% = AB x 45%

EXAMPLES

$25,000 through the tax brackets
$50,000 through the tax brackets
$100,000 through the tax brackets
$200,000 through the tax brackets


For more information visit ato.gov.au.





Superannuation

Superannuation is a pension scheme. It has a compulsory element where employers are required by law to pay a proportion of an employee's salary and wages (currently 9.5%) into a superannuation fund which can be accessed when the employee retires. Superannuation applies to all working Australians, except those earning less than $450 per month, or aged under 18 or over 70.

The superannuation rate will remain at 9.5% until 2021.

Your salary is often quoted as a 'package' where the figure includes the superannuation contribution. In this case the superannuation contribution must be deducted from you salary as tax is not charged on superannuation.

For more information visit australia.gov.au.





Low Income Tax Offset (LITO)

The Low Income Tax Offset is a tax rebate for individuals on low incomes. Since 1 July 2013 the full offset is $445, with a withdrawal rate of 1.5 cents per dollar of income over $37,000, such that it cuts out at $66,667.

For more information visit atotaxrates.info.





Medicare

Medicare is an Australian health care scheme funded by an income tax levy to provide all Australians with access to free or low cost medical care. From 1 July 2014 the Medicare levy increased by 0.5% from 1.5% to 2% to fund the National Disability Insurance Scheme (NDIS). Taxpayers earning more than $90,000 a year (for singles) or $180,000 a year (for couples and families, 2015 fiscal year and beyond) whom don't have private hospital cover, also have to pay the Medicare Levy Surcharge (MLS). This is a 3 tier levy of 1%, 1.25% and 1.5% tax on top of the 2% Medicare levy. For more information see information on the Medicare levy on the infochoice website.

For more information visit privatehealth.gov.au.