Take home pay after deductions???

[Pinhead]

No. The tax system is similar to the UK in that your tax rate increases the more you earn but you only pay the higher tax on the amounts between the bands rather than the whole amount.

The extra $1 on $75,000 would be taxed at 30% ie 30c plus 1.5% Medicare ie 1.5c.

The only time you pay higher amount on everything is if you earn $100K (or $150K if married) and you pay the Medicare surcharge at an additional 1%.

[Pinhead]

Originally Posted by martin948

what tax would i pay on $90k how is it worked say per $1k over $75k is it $600 per $1k

You'd pay 30% on $5K (up to $80K) then 40% on the last $10K (up to $90K).
Medicare levy would be paid at 1% for the whole extra $15K.

These rates apply for 08/09. 09/10 the rates and bands change see
Tax Rates

These later rates (09/10-onwards) are subject to change/confirmation by the ATO.

[Quoll]

Originally Posted by martin948

thanks for that but i found a au gov tax site and do i understand right to think that if i earn $75001 just $1 more then tak would be about $14000 more!

No dont think so for this tax year you would pay $17100 for the $75K and then for every dollar thereafter you would pay 40c so for 75001 you would pay $17,100.40

[Liam]

Here is a very easy site to give you an approximate take home pay at different levels based on current tax rules. I find it easier than the tax office calculators CareerOne.com.au – Salary Calculator, Tax Calculator, Superannuation and Pay Rise Information.

best wishes

Liam