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What percentage of tax do I pay in Australia?

Australian Resident Tax Rates 2021/22 Financial Year

Taxable incomeTax on this income
0 – $18,200Nil ($0) Tax
$18,201 – $45,00019 cents for each $1 over $18,200
$45,001 – $120,000$5,092 plus 32.5 cents for each $1 over $45,000
$120,001 – $180,000$29,467 plus 37 cents for each $1 over $120,000
$180,001 and over$51,667 plus 45 cents for each $1 over $180,000
The above rates do not include the Medicare levy of 2%.*

Who is considered a resident for tax purposes.

Generally, the ATO considers an individual to be an Australian resident for tax purposes if they:

  • have always lived in Australia or you have come to Australia and live here permanently
  • have been in Australia continuously for six months or more, and for most of that time you worked in the one job and lived at the same place
  • have been in Australia for more than six months of the year, unless your usual home is overseas and you do not intend to live in Australia
  • go overseas temporarily and you do not set up a permanent home in another country
  • are an overseas student who has come to Australia to study and are enrolled in a course that is more than six months long.

There are four statutory tests to determine your residency:

  • Resides test
  • Domicile test
  • 183-day test
  • The commonwealth superannuation test.

For further information, please contact us & we’ll be happy to answer any question you may have on the topic.

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