Release: Report shows ATO takes over 50 percent of many Aussies' income

Release: Report shows ATO takes 54 percent of many Australians’ income

The Australian Taxpayers’ Alliance, the nation’s largest grassroots advocacy group representing taxpayers, today calls for lower taxes based on a report from Epicenter released yesterday on the true top marginal tax rates in OECD countries.

“The income tax bracket only shows part of the story. Individuals end up giving over a much larger share of their income in less transparent forms of taxation, “says ATA Communications Manager, Emilie Dye. “According to the European Policy Information Center, some Australians hand over 54 per cent of their income to the taxman.”

“Even former Labor Prime Minister Paul Keating objected to taxing over 50 per cent of someone’s earnings. Such a high tax rate substantially suppresses the economy by disincentivising work.

“First the ATO comes for the petrol people use to get to work. Then the taxman takes a percentage of individuals’ income plus some extra for the medicare levy. Then GST increases the price on all the purchases Australians make. And Aussies had best not drown their sorrows with the money they have left because the ATO will get them with the Alcohol Tax. 

“When it is all said and done many hard-working Australians put in $100 worth of labor for only $46 in pay. 

“When calculating tax, Australians cannot take their tax bracket at face value. The government continues to take part of every dollar leftover after Australians pay their income tax. There is no such thing as a tax free threshold.”