Australian study finds low effective marginal tax rates for Australians, averaging 36%, due to targeted welfare system and childcare subsidy.
A study by the Australian National University reveals that most Australians experience low effective marginal tax rates on extra work, even after considering means tests, childcare costs, and student loan repayments. The average effective marginal tax rate for working-age Australians is 36%, with the majority keeping 64% of their earnings from an extra day's work. The study attributes the low effective marginal tax rates to Australia's targeted welfare system and the recent increase in the childcare subsidy.
August 01, 2024
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