What are the Marginal Tax Rates in Australia?

In Australia, Pay As You Go (PAYG) tax is a system used by the Australian Taxation Office (ATO) to collect tax from individuals and businesses throughout the year, rather than just once a year at tax time. Under this system, employers deduct tax from their employees’ wages and other payments, and businesses deduct tax from payments they make to their contractors. The tax collected is then remitted to the ATO on a regular basis.
The marginal tax rate in Australia is the rate of tax that applies to the next dollar of income earned. The marginal tax rate in Australia is progressive, meaning that as income increases, so does the marginal tax rate. There are currently five marginal tax rates in Australia:
- 0% (applies to the first $18,200 of taxable income)
- 19% (applies to taxable income between $18,201 and $37,000)
- 32.5% (applies to taxable income between $37,001 and $90,000)
- 37% (applies to taxable income between $90,001 and $180,000)
- 45% (applies to taxable income over $180,001)
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