Tax Rates in Australia?

Sorry to be making a thread about this, but I'm old and confused so I need some help.

Let's say I was working and earning $25,000 per year in Australia. Would that mean I'd be paying 19% of my income as taxes?

This is the site I was using. Is it accurate?:

Thank you for any help!


  • +5 votes

    That page states very clearly: 19c for each $1 over $18,200. So 19% of $6800. Then there are other reductions.

  • +2 votes

    The first $18,200 is tax free then 19c per dollar earned up to $37,000.

    $25,000 - $18,200 = $6,800

    $6,800 * 0.19 = $1,292

    bang $1,292 tax

  • +1 vote

    As others have said 19% of the (25K-18,200) but you should be entitled to low income tax offset and most likely won't be needing to pay tax (or very little).


    Note that income will have an effect on payment of any Centrelink benefits. It is scaled so work is always beneficial, but Centrelink payments will be progressively wound back the more you earn.

    For example, for an old age pensioner, the pension starts to be reduced once you earn around $4k per annum, and stops altogether just shy of $50k (which is actually incredibly generous, but I digress!).

    For older people, there are ways to structure your affairs (by making contributions to superannuation, and at the same time withdrawing from it, called transition to retirement) so that you pay little or no tax and maximise any entitlement to the old age pension (again, a remarkably generous state of affairs), but it can be a bit complex. If you were somebody who qualified for the old age pension, and were considering working for $25k or so, it would absolutely be worth your time and money to have a talk with an accountant to understand the steps to take to minimise tax and maximise the pension. An initial discussion should be free or in the range of $100 to discuss ways the accountant could help your situation, and to run some numbers so you can see whether it is worthwhile.

    Take a look at Noel Whittaker's column in the SMH if you want more general info, he deals with this topic a lot. E.g.


    Also you may be entitled to Seniors and Pensioners Tax Offset (SAPTO).

    The SAPTO can reduce the amount of tax you are liable to pay. In some cases, it may reduce your tax liability to zero and you may not have to lodge a tax return.

    Senior Australians