The individual income tax ranges from 0% to 45%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status, number of children, location, age, and marital status.
Gross Annual Income | Tax Rate (%) |
---|---|
0 Up to AUD 18,200 | 0% |
AUD 18,201 Up to AUD 45,000 | 19% |
AUD 45,001 Up to AUD 120,000 | 32.5% |
AUD 120,001 Up to AUD 180,000 | 37% |
Over AUD $180,001 | 45% |
The employer cost is generally estimated at roughly 16.4-18.5% of the employee's salary. However, the total charge may vary depending on the state the employee lives in.
If healthcare benefits are offered to the employee, a mandatory fringe benefit tax will apply. The fringe benefit tax amounts to 47% of the health insurance premium multiplied by a gross-up rate of 1.8868.