BBQ Talk 5

BBQ Talk 5

There is no point earning more money via a pay rise, doing overtime or having a second job because you just lose all the money in tax!!

ANSWER

It is true that we do have a tiered tax system which taxes people more in bands as they earn more money. There are always many debates about whether this is a fair system, but you still always benefit financially from earning more money.

The vast majority of Australian workers are in the 30% tax bracket – so yes for every extra dollar you earn you will probably have to pay the government 30c – but you then get to keep the remaining 70c.

Or to look at it another way, if your base wage is $50,000 you will pay $8547 in tax & Medicare, leaving you with $41,453 in your hand to spend. If, however, through doing overtime or having a second job you earn a further $15,000 – taking your total earnings to $65,000 you will pay $13,947 tax and Medicare – leaving you $51,053 in your hand to spend.

That extra $10,000 is real money that could make a real difference to your finances.

Agilis Chartered Accountants

Agilis Chartered Accountants

Agilis Chartered Accountants provides tailored accounting services, offering clients a high level of personalised advice and support - from individual tax to business consultancy. With a commitment to driving success, we provide comprehensive accounting and advice solutions that ensure every stage of your journey is met with the utmost efficiency. From startup through expansion and growth, our services make it easier for you to achieve business objectives – ultimately leading towards greater financial stability.