Paying tax in Australia

MOVE TO AUSTRALIA | What is the tax system in Australia and how much tax will you be likely to pay when working in Australia?

Income Tax

Australia employs a nationwide progressive income tax system, similar to that used in Britain.

For the 2010/2011 tax year, the rates are as follows (these don’t include a Medicare levy of 1.5%):

All residents have to submit an income tax return annually. This can either be done by you using the Australian Tax Office (ATO) etax software application, or engaging the services of a registered accountant (the fee can be claimed against the following year’s tax return).

All income earners in Australia must have a ‘tax file number’. You can register for one with the ATO when you move to Australia.

Medicare Levy

The Medicare levy, which helps pay for the national health system, is deducted at 1.5% of your taxable income.

You are able to register for the national health system one week after moving to Australia, at a Medicare Office.

Compulsory Superannuation

You are also required to pay a minimum of 9% of your income into a superannuation retirement fund. See:Superannuation and pensions in Australia.

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