My question is: If both adults make say $35,000 will they pay more, less or the same in tax as if one parent made $70,000 and the other was stay at home? I assume this would mean more tax as you would be in a higher tax bracket but im not 100% sure.Does having only 1 parent work mean more tax?
As individuals are taxed on their individual income, a parent making $70,000 on their own will pay more tax than two parents making $35,000 each. This is mainly attributed to the progressivity of Australia's tax system.
Combined income is mainly only taken into account for Medicare Levy and Surcharge purposes.
Your assumption is correct basically.
Hope that helped.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment