Australian Finance Podcast Summer Series Part 9: Tax
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Jan 21, 2026 This discussion dives into the essentials of taxation in Australia, clarifying why tax plays a crucial role in funding services. Learn about gross vs. net income, and how capital gains tax differs from income tax. Discover the benefits of long-term investing in a tax-efficient manner, and explore commonly overlooked deductions, from home office expenses to vehicle claims. The hosts also decipher the complexities of private health insurance and the Medicare levy surcharge, helping listeners simplify their finances.
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Gross vs Net And Progressive Tax
- In Australia employers withhold tax and send it to the ATO so net pay is what hits your bank account.
- Understanding gross vs net and progressive brackets clarifies why pay rises still benefit you despite higher marginal rates.
Don’t Avoid Raises Over Bracket Fear
- Don't fear moving into a higher tax bracket because only the extra dollars are taxed at the higher rate.
- Accept pay rises since you still keep more money overall even after higher marginal tax.
How Capital Gains Fit Into Income
- Capital gains are combined with other income and taxed at your personal rates after applicable discounts.
- Primary residences are generally exempt and holding investments >12 months gives a 50% CGT discount.