Tax rates in Australia

Everyone complains they pay too much tax in Australia, there is also a cry that we are the most taxed nation in the world - that isn’t correct either. The net effects of tax by income tell us that the top 40% of salary earners in Australia pay all the tax to run the nation whilst 60% get given money by the government.

What we do see is the top 1% pay of salary earners pay 17% of the total tax in Australia, whilst the top 20% of salary and wage earners pay 60% of the total income tax burden. What we see in Australia is 46% of the population pay no tax after deductions and offsets.

That's pretty stiff but whilst many complain they pay too much tax, who really pays the greatest proportion of tax in Australia? Generally speaking, the more money you make the greater tax liability you are required to pay due to marginal tax rates so that is fair.

Due to rebates including the family rebates A and B, the vast majority of families in Australia pay no net tax. They have income tax deducted from their salaries at their marginal rate and then returned via family assistance programs, they get back the money they paid and then some.