The joys of taxation
January 17th, 2008 (Money) by danielbowenI would like to know the rate of personal income imposed on the individual in Australia. I just wondered how heavily taxed is the average indivdual. — Cherrie, USA
[Updated with the new tax rates and average earning figure.]
Australians probably don’t pay the highest tax rates in the world, but neither do we pay the lowest. In turn for handing over our hard-earned dollars, we have quite generous (by world standards) policies regarding social welfare and universal health cover, and various other things that are generally seen as good things but cost a bunch of money to maintain. All the same, you’ll find many Aussies (especially those with higher incomes, paying more tax) are more than happy to whinge to you about it.
Income tax for residents is:
- $1 to $6000 – no tax
- $6001 to $25,000 – 15% of each dollar over $6000
- $25,001 to $75,000 – $2,850 plus 30% of each dollar over $25,000
- $75,001 to $150,000 – $17,850 plus 40% of each dollar over $75,000
- $150,001 and above – $47,850 plus 45% of each dollar over $150,000
There’s an extra 1.5% tax for Medicare. Various deductions and offsets apply, depending on circumstances. According to the Australian Bureau of Statistics, the average earnings is $1,162.20 per week, or $60,434.40 per year. Presumbly Mr or Ms Average is paying $13,480.32 in tax out of that, plus $906.52 Medicare tax.
And of course, this is all in Australian dollars. Sometimes it’s known as the Aussie Peso, but at the time of writing, the A$ is worth about US$0.93, close to the highest in years. (For Australians reading who don’t fully understand the international currency market, this does NOT mean you should avoid being paid one dollar coins because they’re worth less.)


Some of us Aussies recall Paul Hogan before he peaked doing with the Croc Dundee films, sold out to Hollywood, dumped the missus and ran off with a
Can I order large quan. of 0 carb., 0 sugar chocolate bars from Darrell Lea Chocolate Shops, for shipping to the U.S.? — Helen, USA
Ah yes, this is something some tourists may not quite think to ask when first planning a visit. Australia is about the size of Continental Western Europe or the main bits of the USA. So assuming you’re not limiting yourself to one city while you’re here (and yeah, some do just come and visit the Sydney Opera House, climb the bridge, ride a ferry, go to the zoo and the Blue Mountains, and then go home), you’ll need to figure out how you’re getting around this big brown land.
So anyway, the quick facts on Australian electricity are these: It’s 230 volts at 50 hertz*, which is broadly the same as the European standard. But it uses a 