Kincella, in reply to what you said on 1/2 : Currently the low income earners, and part time workers earning less than $18,000 are paying nil tax for the start of the 2012/2013 tax year. Up from a base of $6000 in prior years. Those earning up to $37,000 only pay on average 10% tax,
Yet the compulsory employer super is taxed up front at 15%...and when I say up front, it is taxed at the beginning, before it has a chance to earn any income a difference of 5% extra tax.
I would just like to point out that : - the tax free threshold has increased by 3 times, but the low income tax offset has almost gone, which means the tax savings for a lower income earner may only be a couple of hundred dollars. This 'gift' the govt goes on about isn't that valuable to many.
- the marginal tax rates are now a little higher so once you start paying tax, it's at a higher rate.
-also, there is now the Low Income Super Contribution designed to eliminate the 15% tax on concessional contributions for low income earners (<$37k I think, so the SGC going into super may actually be tax-free (once it is refunded) and the offset is the co-contribution has been reduced.
As always, it's largely a give with one hand and take with the other scenario
