Australian Income Tax Law Essay Example | Topics and Well Written Essays - 1500 words

Australian Income Tax Law - Essay ExampleThe expense of government to the individuals of a great nation is like the expense of focal point to the joint tenants of a great estate, who are all obliged to contribute in proportion to their respective interests in the estate. In the observation or spend of this maxim consists what is called the equality or inequality of taxation. Every tax, it must be observed once for all, which falls finally upon one only of the three sorts of revenue enhancement above mentioned, is necessarily unequal in so far as it does not affect the other two.Looking at income tax rates methodology, we entrance that a tax turn outers income is taxed progressively. Broadly, this means that as you earn more income your average tax rate rises. And its really fair Progressive taxation means that high income earners pay more tax than lower income earners. The Government defined a maximum sum, which is not taxed $6000. Lets imagine, that your income is equal to X. T hen if your income lays between youll pay 17% from (X-$6,000) sum. If your income is , you must pay more - $2,652 (according to previous rule) and 30% from (X-$21,600) sum, etc. This is achieved by taxing a range of income brackets as a set constituent or cents in the dollar. These income brackets are called tax brackets. The following tables detail the tax brackets of our progressive tax system for the financial years ending 30 June 2005 and 30 June 2006.