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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.