13 Apr 2016
Taxing Wages
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The OECD (Organisation for Economic Co-operation and Development) has released its latest report on the taxes on labour income for the average worker across its 34 member countries.
In short the average tax and social security burden on employment incomes is 35.9% with the highest tax wedge for a one income earner family with two children in France at 40.5% and Belgium at 40.4%.
Surprisingly New Zealand came in with the smallest tax wedge at 4.9% for a one income earner family with two children.
Australia was found to be in the bottom half of the table with the 6th lowest tax wedge among the OECD member countries for an average one income earner family with two children at 17.8% and the 8th lowest for single income earner at 28.4% (see attached).
Many of you would find these results surprising but then again they are reporting averages which never tell the whole story. For more details including an interactive results table click this link.
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