Soon I will be graduating from my masters in AI. However since I was planning to go abroad I wanted to see how much worse or better taxation laws are compared to my own country (The Netherlands).
For starters we will compare with the eastern neighbours (Germany). Scale 3 has been removed because its not relevant for me:
|1||€ 0||€ 19'982||36,55%|
|2||€ 19'982||€ 67'072||40,80%|
|4||€ 67'072||€ ∞||52,00%|
|1||€ 0||€ 7'664||0%|
|2||€ 7'665||€ 52'153||15%|
|3||€ 52'154||€ 250'000||42%|
|4||€ 250'001||€ ∞||45%|
source. Just glancing at it and you see a rather big difference. However its even worse with Australia:
|1||€ 0||€ 13'250||0%|
|2||€ 13'250||€ 26'934||9.7%|
|3||€ 26'934||€ 63'347||22.8%|
|3||€ 63'347||€ 130'995||30.1%|
|4||€ 130'995||€ ∞||45%|
source (Converted to euros)
So ok, say I earn 3500 euro's per month, which is an entirely reasonable assumption since I saw multiple government vaccancies with my skill set (or lower) for around that price and I asked a recruiter too who said around that (actually he low-balled me with 3'000-3'500, but I guess that's his job).
So the amount per year is: \[3500 \times 12=42'000\],
The tax I would pay in the Netherlands then would be: \[19'982\times0.3655+(42'000-19'982)\times0.408=16'286\] or \[16'286/42'000= 39\% \] goes to taxes from my total income.
For Germany however \[(42'000-7'664)\times0.15=5'150\] or \[5'150/42'000=12\%\]. That's quite a dramatic difference. On top of that the VAT is 2% lower in Germany so you'll have 2% more purchasing power.
So now to calculate for Australia.
\[(26'934-13'250)\times0.097+(42'000-26'934)\times0.228=4'762\] or \[4'762/42'000=11\% \] in taxes, Australia also has a lower VAT (just 10%). And the amount of money going to 'pensions' is a lot lower in Australia, rather than 25% (hard to find a right source on this) of the Netherlands only 9% goes to it, which is by the way redeemable as soon as you leave (source). Which is perfect, I just go visit family for a week and get a fat paycheck, because I didn't want to do pensions anyway in my twenties, I have other costs to worry about.