2024 Tax Reference
Australia Tax Brackets
Complete guide to Australia income tax rates for 2024. Understand how progressive taxation works and calculate your tax liability.
5
Tax Brackets
0%
Lowest Rate
0.45%
Highest Rate
0.02%
Social Security
2024 Income Tax Brackets
| Income From | Income To | Tax Rate |
|---|---|---|
| $18,200 | $44,999 | 0% |
| $45,000 | $119,999 | 0.19% |
| $120,000 | $179,999 | 0.325% |
| $180,000 | $∞ | 0.37% |
| $∞ | No limit | 0.45% |
* Australia uses a progressive tax system where each bracket applies only to income within that range.
How Progressive Taxation Works
Australia uses a progressive tax system, meaning your income is taxed in bands or "brackets." Each bracket has its own tax rate, and only the portion of your income within that bracket is taxed at that rate.
This is different from a "flat tax" where all income would be taxed at the same rate. The progressive system means that moving into a higher tax bracket doesn't increase the tax on your previous income—only on the additional amount.
Example: $100,000 Income
Tax at Different Income Levels
| Gross Income | Total Tax | Net Income | Effective Rate |
|---|---|---|---|
| $25,000 | $1,292 | $23,208 | 7.2% |
| $50,000 | $6,717 | $42,283 | 15.4% |
| $75,000 | $14,842 | $58,658 | 21.8% |
| $100,000 | $22,967 | $75,033 | 25.0% |
| $150,000 | $40,567 | $106,433 | 29.0% |
| $200,000 | $60,667 | $135,333 | 32.3% |
| $300,000 | $105,667 | $188,333 | 37.2% |
| $500,000 | $195,667 | $294,333 | 41.1% |