How is individual income tax handled in Australia?

Employee income in Australia is taxed gradually, but not on a percentage basis. The amount an employee can expect to pay in annual income tax is as follows:  

 

  • Income up to AUD 18,200 (USD 13,909): Exempt from income taxation  
  • AUD 18,201-45,000 (USD 13,910-34,392): AUD 0.19 (USD 0.15) for each dollar between the lower and upper limits of the income band  
  • AUD 45,000-120,000 (USD 34,392-91,714): AUD 5,092 (USD 3891) + AUD 0.325 (USD 0.25) for each dollar between the lower and upper limits of the income band   
  • AUD 120,000-180,000 (USD 91,714-13,7571): AUD 29,467 (USD 22,521) + AUD 0.37 (USD 0.28) for each dollar between the lower and upper limits of the income band  
  • AUD 180,000+ (USD 137,571+): AUD 51,667 (USD 39,488) + AUD 0.45 (USD 0.34) for each dollar over AUD 180,000 (USD 137,571)  


If you have questions about payroll regulations and procedures in Australia, please get in touch with our team today! 

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