Relocating to a new country is not a small decision; Ambler Collins aims to provide you with the most up-to-date and reliable information on important aspects
of life in the country your interested in moving to. Please see the menu below for more information on life in
Australia.
Currency, finance and tax in Australia
Australia uses its own currency of the Australian Dollar, (AUD). This is a decimal currency with 100 cents in the dollar.
Banking systems and services are advanced and very competitive relative to many western countries. All major Australian banks are represented in major cities, towns, and regional centres. ATMs are found in most shopping areas and electronic transfer terminals or EFTPOS and credit card facilities are available in any major shop or restaurant. Banks are generally open 9am till 4pm Monday to Thursday, and till 5pm on Friday.
Finance
Sydney is the major financial hub of Australia and home to the Australian Securities Exchange or ASX; this is the central stock exchange of Australia. The ASX came about as a result of a merger between the Sydney Futures market and the Australian Stock Exchange in 2006. There are over 2000 stocks listed on the ASX with total market capitalization of over US$ 1 trillion the major market index is the S&P/ASX 200.
Taxes
Australia’s financial year runs from July 1st to June 30th and is referred to by the year in which it finishes. Australia has a progressive income tax system, where the tax-free threshold stands at $6000. The breakdown of tax brackets is as follows:
| Taxable income |
Tax on this income
| Effective Tax Rate |
| $0 – $6,000
| Nil
| 0% |
| $6,001 – $34,000 |
15c for each $1 over $6,000 |
0% – 12.3% |
| $34,001 – $80,000 |
$4,200 plus 30c for each $1 over $34,000 |
12.3% – 22.5% |
| $80,001 – $180,000 |
$18,000 plus 40c for each $1 over $80,000 |
22.5% – 32% |
| Over $180,000 |
$58,000 plus 45c for each $1 over $180,000 |
32% – 45% |
Australian corporate tax stands at a flat rate of 30%, although effectively normal Australian residents do not pay this though a dividend imputation system. Capital Gains tax is Australia is applied through income tax rather than separate taxation.
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