The income tax rate generally
and logically rises as an individual tax payer earns
For the taxation fiscal year July 1, 2008 to
June 30, 2009, the Australian income tax system is
introducing a more lenient collection rate, amid the
global financial crisis.
Taxable income ranging from
A$1 to A$6,000 is not imposed any tax rate. A 15%
income tax rate is deducted when taxable annual
income reaches A$6,001 to A$34,000. A 30% income tax
is imposed to yearly income A$34,001 to A$80,000.
40% and 45% income tax is imposed on incomes
A$80,001 to A$180,000 and above A$180,000,
respectively. Australia income tax system is one of
the most systematic and most admired all over the
It is a common knowledge that
governments primarily derive their revenue and
income from tax collected from constituents. In return, tax-paying
people are given the privilege and comfort to live
comfortably, safely and orderly.
infrastructure, government social funds, security
forces and overall governance are funded by tax
In Australia, income tax is levied
through three basic income sources for individual
taxpayers, namely, personal earnings in the form of
wages and salaries, business revenues, and capital
gains. Progressive tax rates are implemented to
individual income, while income generated by firms
is imposed a 30% tax flat rate.
All Australia income taxes are
collected for the government by the Australian
Taxation Office. Aside from Australia income tax
deducted, individual taxable income is also subject to a
1.5% Medicare levy. People with higher taxable income and
less hospital and healthcare insurance coverage are levied
2.5% of taxable income for Medicare.
Such Medicare levies and tax income
implementations are also applied to migrants and foreign
workers, who come to earn a living in the country.
The Australian government has an aggressive battle against
tax evasion. Tax administrators in the country are working
cooperatively with counterparts in other countries like the
United States, the United Kingdom, France, Canada, Italy,
Sweden and New Zealand to curtail and crack down
Liechtenstein accounts that are popularly used by
unscrupulous businesses and individuals to avoid tax
The Australian Taxation Office is regularly
conducting unannounced visits and inspections to identify
Australians with suspicious tax evading accounts and other
tax prevention activities.
Thus, there is definitely no need to reiterate that the
Australian tax officers are also closely monitoring local
taxpayers who are suspiciously abusing use of offshore bank
accounts, financial products and tax arrangements. The
Australian Tax Office is constantly warning tax payers
against tax haven schemes and illegal tax avoidance
strategies. Tax payers who are not paying appropriate income
taxes are subject to penalties and other legal provisions.
Tax evasion in Australia is indeed a clear criminal offense.