Oceania & Pacific
Australia: tax at a glance
Residents are taxed on worldwide income at progressive rates up to 45%, plus a 2% Medicare levy. When someone stops being a resident, a deemed capital-gains disposal kicks in.
Ways to relocate to Australia
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 45%
- Corporate income
- 30%
- Capital gains
- Taxed as ordinary income, with a 50% discount for assets held over 12 months.
- VAT / GST
- 10%
- Dividends (WHT)
- 30% on unfranked dividends. Franked dividends are exempt.
- Interest (WHT)
- 10%
- Royalties (WHT)
- 30%
- Social security (employee)
- None, aside from the 2% Medicare levy on income.
- Social security (employer)
- 12% superannuation guarantee, from 1 July 2025.
- Wealth tax
- None
- Inheritance / estate
- None. There is no estate or inheritance duty.
- Property tax
- State land tax, which varies, plus stamp duty on transfers.
- Other
- State payroll tax of about 4.75-6.85%, plus a Medicare levy of 2%.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- Yes, leaving has a cost
- CFC rules
- Yes
- CRS
- Participating
- Special regime
- A temporary resident exemption, under which foreign income is exempt for temporary-visa holders.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (1)
Frequently asked
What is the income tax rate in Australia?
The top marginal personal income tax rate in Australia is 45%. Progressive, with the top rate starting at AUD 190,000, plus a 2% Medicare levy (effective ~47%).
What is the corporate tax rate in Australia?
The headline corporate income tax rate is 30%.
Does Australia tax capital gains?
Capital gains for individuals: Taxed as ordinary income, with a 50% discount for assets held over 12 months..