You can read some basic data about the Australian tax system and the rate of tax in the lines below.
We think that the Australian personal tax-system is a topic of interest for those who want to immigrate, settle, study and, in the same time, take a job in Australia.
The first and most important feature of the Australian tax system is that it is progressive, which means that the rate of tax increases in line with the income. There are 5 tax zones in the current law in force. In case the employee’s income exceeds a certain zone, only the amount above that zone falls under the category of higher tax, not the whole income.
The following table shows the tax system taken effect recently (1st July 2014) :
| Taxable income | Tax on this income |
|---|---|
| 0 - $18,200 | 0% |
| $18,201 - $37,000 | 19% |
| $37,001 - $80,0000 | 3,572 AUD plus 32.5% after the amount over 37,000 AUD |
| $80,001 - $180,000 | 17,547 AUD plus 37% after the amount over 80,000 AUD |
| More than $180,000 | 54,547 AUD plus 45% after the amount over 180,000 AUD |
The most important part for many who are just starting their life in Australia is definitely that their income is is absolutely taxfree below the amount of 18 200 AUD if they live and work here for more than 6 months.
If you work in Australia for a shorter period than 6 months, then following tax system applies to you:
| Taxable income | Tax on this income |
|---|---|
| 0 - $80,0000 | 32.5% |
| $80,001 - $180,000 | 26,000 AUD plus 37% after the amount over 80,000 AUD |
| Több, mint $180,000 | 63,000 AUD plus 45% after the amount over 180,000 AUD |
However, our colleagues in our central office in Sydney are happy to help you with some advice on how to get to the more favourable tax system and you will be able to seek assistance from an accountant fluently speaking Hungarian if you visit us.