Tax rates
In Australia, a taxpayer's income is taxed progressively. Broadly, this means that as you earn more income your average tax rate rises.
Progressive taxation means that higher income earners pay more tax than lower income earners. This is achieved by taxing a range of income brackets as a set percentage or cents in the dollar. These income brackets are called tax brackets. The following tables detail the tax brackets of our progressive tax system for the financial years ending 30 June 2004 and 30 June 2005.
Residents
Taxable income Tax on this income
$0 – $6,000 Nil
$6,001 – $21,600 17c for each $1 over $6,000
$21,601 - $58,000 $2,652 plus 30c for each $1 over $21,600
$58,001 – $70,000 $13,572 plus 42c for each $1 over $58,000
Over $70,000 $18,612 plus 47c for each $1 over $70,000
Non-Residents
Taxable income Tax on this income
$0 – $21,600 29c for each $1
$21,601 - $58,000 $6,264 plus 30c for each $1 over $21,600
$58,001 – $70,000 $17,184 plus 42c for each $1 over $58,000
Over $70,000 $22,224 plus 47c for each $1 over $70,000
Non-residents are not required to pay the Medicare levy.
