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The Commonwealth of Australia
Canberra
24.99 million
Australian Dollar
.au
+61
Australian Dollar
National Public Holidays
Taxable Income |
Tax on lower amount (AUD) |
Rate on excess |
|
Exceeding (AUD) |
Not exceeding (AUD) |
||
0 |
18,200 |
0 |
0 |
18,200 |
37,000 |
0 |
19 |
37,000 |
90,000 |
3,572 |
32.5 |
90,000 |
180,000 |
20,797 |
37 |
180,000 |
- |
54,097 |
45 |
Taxable Income |
Tax on lower amount (AUD) |
Rate on excess |
|
Exceeding (AUD) |
Not exceeding (AUD) |
||
0 |
90,000 |
0 |
32.5 |
90,000 |
180,000 |
29,250 |
37 |
180,000 |
- |
62,550 |
45 |
Deductible Expenses |
|
Employment Expenses |
|
Personal Deductions |
|
Personal Allowances |
|
Type of Visa/ Permit |
Documentation |
Validity |
Eligibility |
Temporary work short stay specialist visas (subclass 400) |
|
3 months (maximum 6 months) |
Individuals who need to enter Australia to perform short-term, highly specialized work that is not ongoing or to assist in a national emergency can apply for a subclass 400 visa. |
Temporary activity (subclass 408) visa |
|
4 years (for Australian government endorsed event stream) 12 months (for superyacht and special program streams) |
Foreign individuals seeking to perform in high level sports competition, perform work in an Australian government endorsed event, undertake academic research etc. are eligible to apply for subclass 408 visa. |
Temporary skill shortage (subclass 482) visa |
|
2 years (if the occupation is listed on the short term skilled occupation list) 4 years (if the occupation is on the Medium and Long-term Strategic Skills List (MLTSSL) or Regional Occupation List (ROL). |
Individuals intending to work in Australia may apply for a subclass 482 Temporary Skill Shortage (TSS) visa. |
VAT |
|
Standard Rate |
10% |
WHT |
|
Dividends |
30% |
Interest |
10% |
Royalties |
30% |
Technical Service |
0% |
Statutory Benefits |
Probationary Period |
Annual Leave |
Public Holidays |
Parental Leave |
Sick Leave |
Overtime Pay |
Notice Period |
Severance Pay |
Social Security Benefits |
Christmas Bonus% | 0% |
Christmas Bonus Over Vacations % | 0% |
Severance per Year % | The amount of the redundancy pay varies according to the employee's period of continuous service as follows: • if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks (8.33% of annual salary). • if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks (12.5% of annual salary) • if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks (14.5% of annual salary) • if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks (16.66% of annual salary) • if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks (20.83% of annual salary) • if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks (22.91% of annual salary) • if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks (27.08% of annual salary) • if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks (29.16% of annual salary) • if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks (33.33% of annual salary) • if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks (25% of annual salary) |
Vacations % | All full-time workers are guaranteed a minimum of 4 weeks paid annual leave (5.49% of annual salary) |
Notice % | An employer has to give the following minimum notice periods when dismissing an employee: • 1 week if an employee has worked for 1 year or less (2.08%) • 2 weeks if an employee has worker for a period between 1 to 3 years (4.16%) • 3 weeks if an employee has worker for a period between 3 to 5 years (6.25%) • 4 weeks if an employee has worker for more than 5 years (8.33%) |
Christmas Bonus Over Notifications% | 0% |
Vacations Plus% | 0% |
Total percentage of Salary (yearly) | The total employment accruals as a percentage of salary per anum are equal to 15.9% |
Super Guarantee Insurance | 9.50% |
Vacations | 8.22% |
Description | There are no social security taxes in Australia. However, a levy is imposed on taxable income and reportable fringe benefits of residents for the funding of a National Health Scheme (Medicare). The Medicare levy is currently 2%. No levy is payable by those with taxable income below the relevant low income thresholds. A surcharge of between 1% and 1.5% applies to high income taxpayers where the taxpayer and their dependants are not covered by a private health insurance fund registered in Australia that provides basic hospital cover. Both employers and foreign nationals working in Australia should take care in choosing a health fund which both qualifies for the exemption from the Medicare levy surcharge and provides adequate cover because it is possible to have a policy that provides full cover but does not also exempt the policy holder (and their family members) from the surcharge and vice versa. Proper advice should be sought from a tax expert to ensure that the policy covers both aspects. |
Employment Accruals | ||
Annual Leave | All full-time workers are guaranteed a minimum of 4 weeks paid annual leave. | This equals 7.7% (4/52 weeks) of annual income |
Sick Leave | Sick and carer's leave fall under the same leave entitlement, and full-time employees are entitled to 10 days of leave each year. | This equals 2.73% (10/365 days) of annual income |
Overtime | In most cases it attracts a premium of 1.5 times the ordinary rate of pay for the first three hours (2 hours in some industries) and double time thereafter. | Normal hourly rate is around 47.3 AUD. Overtime is paid at an additional 23.64 AUD. |
Severance | The amount of the redundancy pay varies according to the employee's period of continuous service as follows: • if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks; • if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks; • if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks; • if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks; • if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks; • if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks; • if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks; • if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks; • if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks; • if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks. |
This equals 7.7% (4/52 weeks) of annual income |
Social Security | Employers must contribute a minimum percentage of the employee’s ordinary time earnings (OTE) base to a complying superannuation fund for the retirement benefit of its employees. The minimum percentage is currently 9.5% |
This equals 9.5% of annual income |