Australia Income Tax system is a progressive tax paying system, which clearly indicates that as the income of an individual increases, the income tax payable by the individual tax payer increases.
Australia is the second wealthiest nation in the world in terms of asset value per person. As numerous multinational companies are investing in Australia, the income earning capacity of individuals working in Australia is also increasing.
These multinational companies are attracting foreign workforce by providing numerous job opportunities in Australia and Australia’s liberal immigration policies such as Australia PR visa is providing a platform to these working professionals to become a permanent resident of Australia and work in Australia.
The Australia Income Tax system is very similarly like the Indian Income Tax System and is even more pocket friendlier compared to Indian Income Tax rates. For e.g. an individual in India who earns 51 lakhs equivalent to $100000 annually in India, his estimated income tax payable would be 14,54,875 rupees which is equivalent to $28,256 .
On the other hand if the individual earns $100,000 in Australia, his estimated income tax payable would be $25,632 which is substantially lower as compared with the tax payable in India.
Now, let us understand the current and future income tax slabs in Australia and ways to save Australia Income Tax.
*LMITO: Low middle income tax offset.
*LITO: Low income tax offset.
Below is the classification of Australia work force which clearly indicates the level of median income under which working professionals of different categories earn.
Note: The above pay packages are tentative according to an individual's skill sets
To know about the current income tax slabs in Australia click Here
To know whether you are liable to pay Australia Income tax click Here
To know how to save Australia income tax click Here
To know about the tax implications, if you are a foreign citizen click Here
To view the latest offsets and rebates available in the Australia Income Tax system click Here