alt Hacker NewsThere's no way that's true - include the employer side payroll taxes. Whether PPP or nominal my napkin math gives me 40% more tax payable in Australia
Edit: I'm too dumb to know whether to include superannuation as a tax or not so I'm not sure if I'm right or not.
Superannuation is not a tax. It’s a compulsory retirement saving/investment scheme.
However to calculate total income taxes you do need to include the 15% tax on superannuation contributions.
If your pre-tax take home salary is $100k AUD, then your total salary package is 111.5k including the 11.5% compulsory employer superannuation contribution.
You’ll pay regular income taxes + 2% Medicare levy on $100k and your $11.5k super contribution will be taxed at 15%.
So your total income tax including the Medicare levy (but assuming you don’t pay the Medicare surcharge or claim any deductions) will be $24,513. Giving an effective tax rate of 20.2%
There are no state or local income taxes in Australia so that’s it for personal income taxes. However states do charge payroll tax on most companies payroll (e.g. 4.85% on annual payroll over $1M in the state of Victoria for companies in the Melbourne metro area).