Source: Taxation In Australia Journal Article
Published Date: 1 Mar 2019
Many Australians believe that an increase in income leads to a positive increase in cash flow that equates to the full amount minus the excessive income tax and Medicare levy. However, this article seeks to unearth the truth about the practical tax rate for families. The article demonstrates that extra income can, in some cases, contribute very little (and sometimes even negative cash flow) to Australian families. The author is of the view that, although people are knowledgeable about their income tax rate, they are ill-informed about the full impact of an income change on their allowances, subsidies and discounts that frequently exceed the tax impact. The author has supported his claims with examples, and concludes that the Australian Government, despite its good intentions to help, generates a complex multi-layered methodology with inconsistencies, absurdity and even clear unfairness.
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