One important thing you should know as a working-class citizen of Australia is your tax rates and tax brackets. If you earn monthly income and you are a resident in Australia, you should know how where your tax bracket falls and how to calculate your tax for a particular month.
Although tax brackets and rates change slightly year after year, you should be aware of these changes so as to know if you are paying the right tax. In Australia, there are different types of tax you are to pay as well as other areas of Tax deduction.
What are the tax brackets for 2022? How much tax do I pay if I earn 60000 in Australia? What is the highest tax bracket in Australia?
Here you will be enlightened on the current tax brackets for Australia 2022, how taxes in Australia are calculated, the areas of Tax deduction and lots more on the Australian Tax bracket
Australian Tax brackets for 2022
Below shows the tax bracket for Australian citizen:
- 0 – $18,200 Nil
- $18,201 – $45,000 19c for each $1 over $18,200
- $45,001 – $120,000 $5,092 plus 32.5c for each $1 over $45,000
- $120,001 – $180,000 $29,467 plus 37c for each $1 over $120,000
- $180,001 and over $51,667 plus 45c for each $1 over $180,000
How are Tax calculated in Australia
Are you confused on how tax rates are being calculated? As a citizen or resident in Australia, it is your right to know how your tax are being deducted. The income tax is allowable deductions subtracted from accessible income .
Areas of Tax deduction in Australia
You can be sure you are paying the right tax in Australia after all the necessary tax deductions are done. These are the areas your tax are deducted:
- Work related expenses
- Cost of managing your tax affairs: Managing your tax affairs includes the cost of advice for preparing and lodging your tax return and business activity statements (BAS).
- Gifts and donations: You can claim the cost of any charitable gifts or donations you make to deductible gift recipients.
- Personal super contribution: You will have a personal super contribution tax deducted if you complete an ATO form and send it to your super fund
- Interest, dividend and other investment income deductions: Expenses associated with earning assessable interest, dividends, rent or other investment income
For questions and enquires on the Tax bracket in Australia, please do well to leave us a comment below