Australia
Top Income Tax
45%
Marginal rate
Corporate Tax
30%
Standard rate
VAT / Sales Tax
10%
Standard rate
Capital Gains
22.5%
Standard rate
Overview
Australia offers a high quality of life with a relatively simple tax system. The 2024 Stage 3 tax cuts significantly reduced the tax burden for middle-income earners. Sydney and Melbourne are major business centers. The superannuation system means no employee social security contributions.
Income Tax Brackets
| Income Range (AUD) | Tax Rate |
|---|---|
| 0 - 18,200 | 0% |
| 18,200 - 45,000 | 16% |
| 45,000 - 135,000 | 30% |
| 135,000 - 190,000 | 37% |
| 190,000+ | 45% |
2024-25 rates after Stage 3 tax cuts. Plus 2% Medicare levy. 47% effective top rate.
Corporate Tax
Standard Rate
30%
Small Business Rate
25%
25% for base rate entities (turnover under AUD 50M). 30% for larger companies.
VAT / Sales Tax
Standard Rate
10%
GST at 10%. Food, health, education are GST-free.
Capital Gains Tax
Standard Rate
22.5%
50% discount for assets held 12+ months. Taxed at marginal rate on included amount.
Social Security Contributions
Employee
0%
Employer
11.5%
Self-Employed
0%
Superannuation Guarantee: employer contributes 11.5% (rising to 12% by 2025). No employee social security contribution.
Pros & Cons
Pros
- Stage 3 tax cuts reducing burden
- No employee social security
- 25% small business rate
- High quality of life
- 50% CGT discount
Cons
- 45% top marginal rate
- No digital nomad visa
- High cost of living
- 30% large company rate
- Distance from major markets
Living Indicators
Cost of Living Index
Above average
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Australia is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Australia government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.