Asia-Pacific · AUD

Australia

Reviewed 2026-06-21
Top income tax
45%
Self-employed SS
No
VAT
10%
Capital gains
45%
Exit tax
Yes
Nomad visa
No
47
/ 100
Tax efficiency33
Ease to enter70
Ease to exit36
Cost of living63
Internet29
English100
How is this scored?
Australia taxes residents on worldwide income under a progressive scale topping out at 45% plus a 2% Medicare levy, with capital gains taxed as ordinary income but eligible for a 50% discount on assets held over 12 months. There is no employee social security tax, but employers must pay 12% superannuation, and the self-employed contribute only voluntarily. It has no wealth, inheritance, or gift tax, though leaving the country triggers a deemed-disposal exit tax (CGT event I1) on non-Australian assets unless deferral is elected.

Personal income tax

Income tax structureProgressive
Top income tax rate45%
Entry income tax rate16%
Top rate threshold$124,000
Taxation basisWorldwide
Local/state income taxNo

Social security

Self-employed social securityNo
Employee SS rate0%
Employer SS rate12%

Indirect & other taxes

VAT standard rate10%
Capital gains rate45%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo

Exit & residency

Exit taxYes
Exit tax triggerCeasing Australian tax residency triggers CGT event I1, a deemed disposal at market value of CGT assets other than taxable Australian property (election to defer available)
EU/EEA deferralNo
Days to trigger residency183 days

Corporate

Corporate income tax rate30%
WHT on dividends30%
CFC rulesYes

Incentives & special regimes

Special expat regimeNo

Immigration & setup

Digital nomad visaNo
Entrepreneur visaYes
Ease of setup5 / 5

Lifestyle

Cost of living index67.9
Internet speed130 Mbps
English proficiencyHigh
Civil liberties92

Sources

← All countries

Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.