Commentary

2.2 Withholding of social security

Australia
Australia | Commentary

2.2 Withholding of social security

Australia | Commentary

2.2     Withholding of social security

Australians are entitled to access a broad range of social security safety nets such as:

  1.  

    •     unemployment benefits

  2.  

    •     health care

  3.  

    •     subsidised childcare, and

  4.  

    •     old-aged benefit payments including pensions

Access to these benefits is not dependent on whether an individual has made contributions to specific government funding pools. There is no requirement for employers to withhold tax for the specific purpose of funding social security initiatives.

At the Commonwealth level, income tax is withheld from salaries in two components:

  1.  

    •     progressive marginal tax rates (0%–45%), and

  2.  

    •     a separate charge, levied at

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