Australia has a progressive tax system, meaning the more you earn the more you’re taxed. At present Australia’s five income tax brackets include:
$0-$18,200: 0%
$18,201 - $45,000: 19%
$45,001 - $120,000: 32.5%
$120,001 - $180,000: 37%
$180,001+: 45%
Note these are marginal rates, meaning only the income between these brackets is taxed at that amount. That means if you earn $100,000, $18,200 of that isn’t taxed at all; the next portion up to $45,000 is taxed at 19%; and the remaining portion up to $120,000 is taxed at 32.5%.
This means you’d be taxed $22,967, which is a real rate of just under 23%. This figure does not include the 2% Medicare levy or any HELP/HECS debt payable, and so on.
The income tax brackets are also set to be reduced and simplified from the 2024-25 financial year.