what percentage of income is taxed in australia
Income tax in Australia The two statutes under which income tax is calculated are the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997; the former is gradually being re-written into the latter. Taxable income is the difference between assessable income and allowable deductions. There are three main types of assessable income for individual taxpayers: personal earnings (such as salary and wages), business income and capital gains. Taxable income of individuals is taxed at progressive rates from 0 to 45%, plus a Medicare levy of 2%, while income derived by companies is taxed at either 30% or 27.5% depending on annual turnover. Generally, capital gains are only subject to tax at the time the gain is realised and are reduced by 50% if the capital asset sold was held for more than 1 year.
Goods and Services Tax (New Zealand) Since its introduction it has had two increases, on 1 July 1989 the rate increased to 12.5%[4] and on 1 October 2010 it increased again to 15%,[2] to pay for income tax cuts by the National Government.