Home » Emigration Guides » Australia » Money And Costs » Tax And Social Security In Australia

Yes…it is true. Tax is a part of life. However, in Australia, it seems to be a much bigger part of life than in other countries around the world. The taxation system within Australia is not only complex, but relatively high. There are several different tax procedures that effect different individuals within the country. Personal income, capital gains, and company income are the main sources from which the Australia government implements the taxation procedures.

Income tax
As of 2011 – 2012, the income tax rates for Australian residents are as follows –

$0 - $6,000: Zero tax
$6,001 - $37,000: 15 cents for every dollar over $6,000
$37,001 - $80,000: $4,650 plus 30 cents for every dollar over $37,000
$80,001 - $180,000: $17,550 plus 37 cents for each dollar over $80,000
$180,001 +: $54,550 plus 45 cents for every dollar over $180,000

The income tax system portrayed above is a progressive tax. In addition, the compulsory Medicare levy of 1.5 percent is not displayed in the above data. This becomes quite significant for the higher-income earners who do not have private health insurance, as the levy actually increases to somewhere between 2.5 percent and 3.0 percent per year.

Those earners who are under 18 years of age do not fall under this category. They have a different set of data, but tax rates still range from 0 percent to 45 precent per annum. If minors are working full time though, they will fall under the tax rates shown above.

Company tax
Company tax is another type of taxation procedure that emigrants might have to pay. There is just the one rate of 30 percent for Australia's company tax laws.

Capital gains tax
The income tax system within Australia also includes Capital Gains tax. Any type of asset disposal during the financial year, with the exception of a family home, is liable for taxation. Net gains are considered part of the yearly income for businesses, companies, and households, and therefore are taxed accordingly. There are certain exemptions, including assets for personal use and any gambling wins.

Benefits
Emigrants bringing a family with them will be happy to know that there is a Family Tax Benefit that exists in Australia. This basically provides tax refunds for families with dependent children. For example, a family with a child under the age of 13 will receive payment of about $4,000 per child. Children between 13 and 15 accumulate refunds of about $5,800, and older dependent children about $2,000. If the family income for a household is over $42,000, then these payments are less 20 percent, while family incomes of over $94,000 are reduced by $30.