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The good news is most of us pay low effective tax rates on an extra day’s work, even including means tests and childcare

Written by Ben Phillips, Associate Professor, POLIS@ANU Centre for Social Policy Research, Australian National University

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Australia’s top marginal tax rate is 47% (45% plus Medicare levy), but some of us face a so-called effective marginal tax rate that’s much higher.

Effective rates include everything that is lost as a result of earning more, including personal income tax, government benefits and sometimes childcare costs and student...

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