Miscellaneous 2019

The truth about the practical tax rate for families

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.

Author Profile
Barak Tchelet

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Miscellaneous 2019

Share this page