Australia's Future Tax System

Architecture of Australia's tax and transfer system

5.4 Australia's top personal tax rate

Chart 5.8 compares Australia's top marginal tax rate and threshold (as a multiple of the average wage) with other OECD countries in 2007. Australia's top marginal tax rate is average for the OECD.

Australia's top personal tax rate threshold was 2.6 times the OECD's measure of average wages — comparable with the OECD average of 2.5 times the average wage. The top threshold is within the same range as other OECD‑10 countries. Increases in the top threshold over the past five years have improved Australia's relative position. This position may change again with the 1 July 2008 increase in this threshold. However, the relative position will depend on changes in other OECD countries.

Chart 5.8: Top marginal tax rates and thresholds for employees — OECD 2007

(unweighted averages)

Chart 5.8: Top marginal tax rates and thresholds for employees — OECD 2007 (unweighted averages)

Source: OECD Tax Database.