On Tue, Jun 04, 2013 at 07:45:19PM +1000, Trent W. Buck wrote:
Pidgorny, Slav (GEUS) wrote:
Don't equate salary and net worth. BillG's 70+ billions is that he's not made his income yet.
Hence "oversimplification", though I daresay one of those other taxes I know nothing about (capital gains?) ought to apply.
don't be silly. taxes only apply to those who can't afford loophole exploiting accountants and lawyers to advise them on how to get away with putting their billions into a bogus tax-dodge charity. or "invest" the money in a foreign tax-haven company and "loan" themselves whatever spending money they need.
How do you reduce your tax to just 21%?
By being poor?
| 0 - $18200pa nil tax | $18201 - $37000 19c per dollar over $18201 | $37001 - $80000 $3572+32.5c per dollar over $37000
So e.g. if your salary is $20k/ann, that's 0.19*(37k-18k2) / 20k = 9%. Easy.
unfortunately, lots of people are innumerate and find this at least as difficult to understand as per-calendar-month rent not being the same as 4 weeks rent. they see the progressive tax rate of 32.5% and assume that once they hit that magical threshold of $37001 then ALL of their income is taxed at that rate, not just the portion between $37K and $80K. this is why some believe that earning that extra $1 can result in them paying hundreds or thousands of dollars more tax....when that extra dollar really means they pay an extra 32.5 cents tax and have another 67.5 cents in their pocket. in reality, given the progressive nature of the tax scale, the average[1] worker (with an income of $72800) pays $15207 income tax or 20.88% the average income, however, is hugely distorted by unusually high (and unusually low) incomes. the median income for 2013 is actually a lot lower than that, at $57400. income tax on that is $10202 or 17.77%. so you don't even have to be poor to get an overall tax rate of 21%. that's what you pay when you're on a pretty good - i.e. well above median - income....and if you're earning that much, you're earning more than 75% of australians. [1] average and median australian incomes sourced from: http://mattcowgill.wordpress.com/2013/05/13/what-is-the-typical-australians-... who, in turn, references the ABS web site. the median figure is from 2011 rather than 2013, and may have changed a little in 2 years. this was conveniently the first hit when i googled for 'average australian income'. craig -- craig sanders <cas@taz.net.au>