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Men's Weekly

that's how we tax income from savings

  • Written by Robert Breunig, Professor of Economics and Director, Tax and Transfer Policy Institute, Crawford School of Public Policy, Australian National University
that's how we tax income from savingsShutterstock

We’re told Australia has a progressive tax system – the more you earn, the higher the rate.

And that’s certainly the case for earnings from wages. An Australian on A$35,000 sacrifices 21 cents out of each extra dollar they earn whereas an Australian on $90,000 sacrifices 39 cents.

That’s how it’s meant to be...

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