Australian Personal Tax: The Main Source Of Revenue

Individual tax is

Employees should provide 9 digit tax accounts to their employers. The employer withholds the individual tax while paying wages, and at the same time withholds 1.5% of the medical insurance tax.

If the employee does not have a tax account, the tax is mainly deducted at 46.5%.

Australia provides various tax exemption and welfare benefits to low-income families.

If the income is less than 30 thousand Australian dollars between July 1, 2010 and June 30, 2011, the tax revenue will be reduced by 1500 Australian dollars.

If there are children in the family, children can be subsidized (FTB-A). In 2008-2009 years, the subsidy standard is: 4631 Australian dollars under 13 years old, 5818 Australian dollars for 13-15 years old, 1945 Australian dollars for 16-17 years old, 18-24 years old (except for work) 2379 Australian dollars.

If the family income exceeds 42559 Australian dollars, all children's allowance will be deducted by 20%. If the family income exceeds 94000 Australian dollars, the deduction will be 30%.

If a taxpayer has a low income family, the child who is the youngest under 15 years of age should be subsidized again (FTB-B). The standard is: 3358 Australian dollars under 5 years old, 2339 Australian dollars at 5-15 years old.

If the family income is above 4526 Australian dollars, the allowance will be deducted by 20%.

Australia is very strict in calculating the family income that is subsidized. The social security payment has been counted as family income. The investment loss must not be deducted from the income. If the loss of family income is caused by the loss of real estate or stocks, the government will not subsidize it.