Income  Taxation in Australia

The taxation in Australia is considered high however fair. The taxation is made by levels of income. The more the person earns, the higher is the tax. Australians pay a lot of attention where the government is investing the money paid by the Taxpayers (contributing) to ATO (Australian Taxation Office), and if the government do not use well the money, it will be a big issue from the population, as well as from the opposition parties.

Everybody practically pay tax, being the level of exemption very low. Tax evasion is a serious crime, and it will be for sure, an easy way to the prison, doesn't matter the amount. All the information is crossed, not only with the ones coming from the employer, but also with official departments such as social welfare and banks, (there is no privacy for the Taxation Office).

For employees the tax is deducted at the time of the payment, and for the Self- employed the tax is paid in the end of the financial year, that starts 1º of July of each year. Any worker, either international student or not,  has that to get a number for income tax from the Australia Taxation Office (ACT). International students will be able to request at least part of the paid taxes in the end of the financial year or when leaving Australia definitively besides the Superannuation.

Levels of Income and  Taxation for Residents (2006)

Levels of Income and Taxation to No Residents

Important Note: if you are in Australia for more than 6 months, you can be considered resident for taxation. This rule also apply of International students (so you may pay less tax.). Reads more here.

Despite the high taxation the majority of the population does not complain in function of the quality of the services they get through the taxes paid. Once, an Australian friend told me:- if you are paying too much taxes in Australia, it is a signal that you are earning very well.

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