Effective average tax rates
An anonymous reader has sent me some interesting charts on average tax rates. The first shows the average income tax rate for a single person, taking into account the Medicare levy and the low income tax offset. The average tax rate rises with income as you’d expect but much more slowly than the marginal tax rates
The second takes into account the withdrawal of social security benefits, to compute an effective average tax rate, where the denominator is private income+maximum transfer payments and the numerator is tax paid+benefits withdrawn. The third does the same for a couple with one child. These average tax rates peak at a fortnightly income of about $500 for a single person and $1000 for a couple, and are otherwise fairly flat.
The pics are attached over the fold
Update Sorry, all that there are some problems with these pics. I’ll try and fix them ASAP.