Myth busted: Australia’s income tax is below average

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The ANU’s Peter Whiteford has debunked the view that Australia is a high taxing nation, nor that its personal income taxes are among the highest in the world.

According to Whiteford, Australia is the OECD’s 10th lowest taxing nation:

Tax revenue as a percentage of GDP

Whiteford also argues that Australia’s personal income tax take is distorted, since it does not include compulsory social security taxes, which are effectively raised like income taxes in other nations and “are very similar to income taxes”:

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Social security taxes

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.