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The Times

The good news is most of us pay low effective tax rates on an extra day’s work, even including means tests and childcare

  • Written by Ben Phillips, Associate Professor, POLIS@ANU Centre for Social Policy Research, Australian National University
The good news is most of us pay low effective tax rates on an extra day’s work, even including means tests and childcarePormezz/Shutterstock

Australia’s top marginal tax rate is 47% (45% plus Medicare levy), but some of us face a so-called effective marginal tax rate that’s much higher.

Effective rates include everything that is lost as a result of earning more, including personal income tax, government benefits and sometimes childcare costs and student...

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