Is Australia a high-tax or low-tax country?

Australia is a moderate-tax country, not high or low. For an income of AUD $75,000, your effective tax rate is around 24.0%. This puts it squarely in the middle compared to the 36 countries we analyze at Net Life Value. To give you some context, a low-tax country like the UAE has an effective rate of 0% at that income level, while a high-tax country like Belgium hits you with 41.5%. Australia’s 24.0% is comparable to Canada (22.5%) or the UK (20.3%), but higher than the US (16.9%). Beyond income tax, Australia has a Goods and Services Tax (GST) of 10% on most items, which is also on the lower end internationally. Many European countries have VAT rates closer to 20%. So, while you won’t escape taxes entirely, Australia's tax system won't shock you if you're coming from a country with a similar social safety net. It's a sweet spot for many.