Australia

Australia uses a progressive income tax system with five brackets for residents: 0% up to AUD 18,200, 19% to AUD 45,000, 30% to AUD 135,000, 37% to AUD 190,000, and 45% above AUD 190,000. The Medicare Levy adds 2%, and a Medicare Levy Surcharge of 1-1.5% applies to higher earners without private hospital cover. The Low and Middle Income Tax Offset (LMITO) and Low Income Tax Offset (LITO) reduce tax for lower earners. The LITO provides up to AUD 700 for taxable incomes below AUD 66,667. Superannuation (retirement fund) is mandatory, with employers contributing 11.5% of ordinary time earnings (increasing to 12% by 2025). Employees can make additional voluntary contributions with concessional tax treatment. The Super Guarantee cap for concessional contributions is AUD 30,000 per year. Australia taxes capital gains at the individual's marginal rate, with a 50% discount for assets held over 12 months. Negative gearing on investment properties allows deduction of rental losses against other income. The GST is 10%. The corporate tax rate is 25% (30% for large companies with base rate entity passive income above 80%). The HECS-HELP system for student loan repayment requires mandatory repayments through the tax system once income exceeds approximately AUD 54,435, at rates from 1% to 10% of income.