Income tax eats up one-quarter of Australians’ wages on average and is the fourth-highest impost in the developed world, according to new figures from the Organisation for Economic Co-operation and Development.
But adding in other employment taxes, such as social security contributions, which Australia does not levy like most countries do, the nation is in the middle of the pack in taxing workers’ income, the OECD says.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com