hi,

I am just wondering what the taxes are like which you pay on your wages in australia. we are moving to Perth and want to work as both myself and my husband have a job on the model list.

Thanks

Upto $6,000 you pay 0%
between $6,001 - $21,600 its 17%
between $21,601 - $58,000 its 30%
between $5801 - $70,000 its 42%
Over $70,000 its 47%

You may find this link useful http://www.ato.gov.au/ if you would like to learn a little more on Australian Tax.

Regards

Sharon
www.immigrate-to-a-new-life-in-perth.com

hi,

i am a little confused. is that more than in this country. is it 47% of over $7000. Does that mean nearly half your wages. Sorry if this sounds thick but i am not sure i undertanmd any of this.

Thanks

Yes you are taxed heavier here than in Uk. Also these tax rates don't include compulsory superannuation (pension contribution) of 9%.

So effectively over $70,000 you don't pay 47% but 56% (47% tax 9% super). The 9% is added to the other rates as well.

I AM SORRY I KNOW YOU MUST THINK I AM THICK BUT IF I EARN $1000 I ONLY GET $460 IS THAT RIGHT IF YOU EARN OVER $70000.

THATS ALOT

Correct

$70,000 is a good salary out here as the average is about $50,000.

If you think about it though stacey you are currently paying 7.5% on ALL your salary in National Insurance payments.

As far as the 9% super well, at least in australia they MAKE you save save for your future and after all you do get it back so its not really Tax.

So all in all you probably do pay more TAX in Australia but its not so scary as it sounds.

Stacey

I have looked on the above website and it I believe it works out like this, bear with me

If you earn $50,000 gross pay you have the first $6,000 tax free.

The next 'step' is anything over $6,001 to $21,600, in this case being $£15,599 which is taxed at 17% = $2,652

The next 'step' is anything over $21,601 to $58,000, in this case being $28399 (remember you only have $50,000), this is then taxed at 30% making $8,520

So if you add up the deductions:

2,652 and 8,520 makes your deductions as $11,172.

Medicare is at 1.5% on $50,000 which is $750.

So from a gross income of $50,000 your deductions are in total $11,922 leaving you with $38,078

Are you still with me, cos I'm lost!

I hope I have interpreted this and explained it correctly, anyone?

Hazel

Sorry but i'm totally lost on this one but if anyone can comment on how correct this i would be really interested as hope to be in Perth by July !

hiya

Thanks for the replys. I am understanding this to a certain extent although i am unsure about what someone said abo0ut getting it back. what is that about? I am feeling confused now. I am a part time teacher and my husband is a bricklayer. I was wondering what quality of life we will have? Is it a big deal with all that task taken off or can we sill live very confortably?

stacey

Staceys example looks correct to me. Tax is higher here in Australia but we dont have to pay 9% NI contributions only 1.5% medicare

To compare the UK to Staceys example

If you had a salary of GBP 50,000 in the UK you would be paying

GBP 11,959 (tax)
GBP 3,255 (NI)
Total 15,214

This would leave you with take home of
GBP 34,785

I know there is probably few people in the UK who earn GBP 50,000 but then how many people in the UK could buy a 4 bedroomed detached bungalow 10 mins drive from the beach and 20 mins from the City Centre for GBP 125,000 ???? Its all relative. :-)

Just compare the cost of eating out, buying fuel, a new car, or even a new home in Perth to the UK. The lifestyle and weather over here does not need you to spend $$$$ every time you go out. A picnic on the beach or in the park costs very little. How often do you get to do that in the UK???

Sorry I have probably moved a little away from the topic now but thought it useful

Sharon
www.immigrate-to-a-new-life-in-perth.com

The ATO website listed above is definitely the best place for info, but Lil Sis is correct:

Taxable Income $0 – $6,000
Tax paid - Nil

Taxable Income - $6,001 – $21,600
Tax paid 17c for each $1 over $6,000

Taxable Income -$21,601 - $58,000
Tax paid - $2,652 plus 30c for each $1 over $21,600

Taxable Income -$58,001 – $70,000
Tax paid $13,572 plus 42c for each $1 over $58,000

Taxable Income - Over $70,000
Tax paid $18,612 plus 47c for each $1 over $70,000


The above rates do not include the Medicare levy of 1.5%.

Yes taxes are higher in Oz than in the UK.

A bricklayer might expect to earn say $60,000. Just as in the UK, wages for this type of job can vary wildly depending on the housing cycle, demand, how cheeky your quotes are etc.

So the tax for the year is $12,672 plus about $825 Medicare Levy, plus compulsory superannuation contributions (pension) of 9%. All up about $20 500.

This leaves a tax home salary of roughly $760 per week.

For quality of life ...

Rent - regular 3 bed 2 bath home in decent capital city suburb (Sydney would be higher) say $350 per week. Check www.realestate.com.au for particular areas. Mortgage rates are currently around 6.5% so you could work that one out.
Groceries - $50-60 per person per week.
Petrol/travel to and from work - say $30 per week.
Movie - $10 a ticket
Mobile phone bill - regular but not crazy use - $10-15 per week
Big Mac Meal - $5-$6
Cheapish restaurant - $15 main course
Nice restaurant - $26-32 main course
Bottle of cheap but good wine from an off licence - $8-11
Bottle of pretty nice wine - $20-25
Beach and sunshine - free ...

Thanks for the useful info!!!!
Ever thought of becoming an immigration agent!!!
You make a good one!
Looking at your location and reading your mails I m confused are you in England or are you in Oz ???
You seemed very informed on everything !!!
really appreicate the info ,sometimes web sites of some agents wont give you a detailed or a breakdown on what to expect if and when you pass!!!
Cheers
Kind regards
Lisa

If you go to Auz on a 457 visa, are you taxed as a resident or non-resident?

You are taxed as a resident (i.e. you pay less tax than someone on a working holiday visa). You may also qualify for LAFHA (Living Away From Home Allowance). This allows for tax free payments for food and additional accomodation costs.
You qualify for LAFHA if your reason for being there is the job and you intend to return to your main residence at some point (i.e. you usually have to have secured your work prior to getting to Australia).

What are you going on about mate?
Super is paid by the employer at 9%.

All you guys are looking at the wrong info - new rates of tax apply from 1st July 2005, being:

up to 21,600 - 15%
up to 70,000 - 30%

I forget the rest, but the top tax bracket kicks in at $125,000.

All the rates are tiered, so the following applies:

0-6000 - no tax payable
6001 - 21600 - taxed at 15%
21,600 - 70,000 taxed at 30%

etc etc

check out http://www.southerntaxationservices.com.au

quote:

Originally posted by Kiwipaul:
Yes you are taxed heavier here than in Uk. Also these tax rates don't include compulsory superannuation (pension contribution) of 9%.

So effectively over $70,000 you don't pay 47% but 56% (47% tax 9% super). The 9% is added to the other rates as well.

This message has been edited. Last edited by: mark68,

quote:

Originally posted by mark68:
What are you going on about mate?
Super is paid by the employer at 9%.]

Not neccessarly some employers quote your salary gross (to appear more) and so you lose the 9% off the top. This is my situation.

quote:

All you guys are looking at the wrong info - new rates of tax apply from 1st July 2005, being:

up to 21,600 - 15%
up to 70,000 - 30%

I forget the rest, but the top tax bracket kicks in at $125,000.

WRONG for tax year 05/06
up to 21,600 - 15%
up to 63,000 - 30% (70,000 in 06/07)
up to 95,000 - 42% (125,000 in 06/07)
over 95,000 - 47% (125,000 in 06/07)

I sure hope that site you refer to is more accurate than you appear to be.

Also the figures I quoted were from March when they hadn't release the new rate at the time and they were correct for that tax year 04/05.

You don't lose the money - its paid into super.
Your actual quote was that you pay 56% tax!

heres the rates at:
rates

quote:

Originally posted by Kiwipaul:

quote:

Originally posted by mark68:
What are you going on about mate?
Super is paid by the employer at 9%.]

Not neccessarly some employers quote your salary gross (to appear more) and so you lose the 9% off the top. This is my situation.

quote:

All you guys are looking at the wrong info - new rates of tax apply from 1st July 2005, being:

up to 21,600 - 15%
up to 70,000 - 30%

I forget the rest, but the top tax bracket kicks in at $125,000.

WRONG for tax year 05/06
up to 21,600 - 15%
up to 63,000 - 30% (70,000 in 06/07)
up to 95,000 - 42% (125,000 in 06/07)
over 95,000 - 47% (125,000 in 06/07)

I sure hope that site you refer to is more accurate than you appear to be.

Also the figures I quoted were from March when they hadn't release the new rate at the time and they were correct for that tax year 04/05.

Dear Lisa and Neil

I am in Brisbane, just moved from London where I was for 5 years. I like both places, and will probably end up back in the UK for a few years sometime.

The best tip is to save as much as you can while you are in the UK, and don't rush into anything when you get to Oz, take your time and enjoy being in-between jobs (the more cash you have, the more you can enjoy it!).

Cheers Ariane