Future job and taxation

TAXATION AND WORK FUTURE:

Resident tax rates 2022-23 from ATO (australian taxation office)

This is the residential taxation rate 2023 that every Australian is obligated to pay from ATO.

Note: Each student examples below have varying job aspiration. The following examples are merged in this website created by one of us, for the purpose of this competition.

Consumerism is the idea that the consumption of goods and services can cause over consumption or fulfillment of one's happiness and well-being. As an emerging a employee, we will participate in Australia's economic activity through our consumption and tax.

How consumerism impacts our personal finance?

Personal finance is important in planning financial future. Personal finance is an individual or household's total asset, investment and/or cash. It entails making financial decisions and taking risks. As we age, individual's asset may include investment, savings, retirement plans, cars, etc.

Using Student 1's consumerism reflection, student believes that consumerism plays a big role in personal finance due to our individual consumer needs and wants.

Student also acknowledged that at the moment, his consumer needs (examples from the home page) includes house bills and rent (monthly). However, for his essential needs, such as, budget for food (to last around 3 days) and water (included in house bills) hypothetically cost about $1920 per month. Therefore, his parents approximately pays $192.00 GST.

Furthermore, student 1's consumer wants are Netflix subscription, legos, and books which is about $39.20 per month. That includes $3.92 GST. Therefore, his hypothetical personal budget per week is approximately: $1959.20 if he continues his spending pattern.

Student also claimed that he does not have financial independence just yet and relies on mum and sister to pay for his consumer wants and needs. Hence, his my personal budget per week would be: $0 and mum and sister pays for all expenses with GST.

Forecast of Student 1's Work Future:

site owner

Student 1 would like to work as an Actuary as one of her options for the future. She would like to work in Australia but she does not know what company she would like to work under. The advertised average salary for an actuary is $128,000 per year. (seek.com)

Student 1 would also like to work as an Astronomer in the future as she is also interested in space. She does not know where she can apply to be an astronomer but approximately an astronomer's average salary is $163,417 per year. (https://www.erieri.com/salary/job/astronomer/australia)

HOW MUCH TAX DOES ACTUARY NEED TO PAY:

From the ATO's residential tax rate, if an actuary earns a NET INCOME OF: 110,000, the tax rate is 32.5%. Total tax is $32,067 per year which is $2672.25 per month.

HOW MUCH TAX DOES ASTRONOMER NEED TO PAY:

From the ATO's residential tax rate, if an astronomer earns a NET INCOME OF: 113,000, the tax rate is still 32.5%. Total tax is $43577.50 per year which is $3631.45 per month .

Tax Calculations

Actuary

128,000 - 45,000 = 83,000

5,092 + 0.325 x 83,000 = $32,067 tax

128,000 - 32,067= $95,933 income per year

32,067/12 = $2672.25 tax per month

95,933/12 = $7994.40 income per month

Overall I may earn $5322.15 per month

Astronomer

163,417 - 45,000 = 118,417

5,092 + 0.325 x 118,417= $43577.50 tax

163,417 - 42577.50= $120839.50 income per year

43577.50/12 = $3631.45 tax per month

120839.50/12 = $10069.95 income per month

Overall I may earn $6438.50 per month

Forecast of Student 2's Work Future:

https://sites.google.com/education.nsw.gov.au/my-future-self/

Student 2 would like to be a dancer in the future. She spends about $350 p/week on her needs and wants. Also, based on her spending choices, considering her needs and wants, are factors that affect her decision making process, and defines her consumerism.

She believes that understanding expenses and how one manages consumerism determines her future capability to be financially secured and gain economic freedom. By learning how Australian would be taxed in the future will impact herspending habits.

HOW MUCH TAX WOULD A DANCER NEED TO PAY:

Student 2 aims to work in New York City, and she is determined to make it. Should plans to start her career in Sydney, as an aspiring professional dancer to earn approximately $70,000 - $100,000 per year.

If she earns a NET income of: $100,000, she will be taxed rate is: 32.5% over 45,000 + 5,092.

Her total tax would be: $22, 967 per year, and $1913. 91 per month.

Forecast of Student 3's Work Future:

https://sites.google.com/education.nsw.gov.au/tonynguyen/prospective-job

Student 3 wants to work at laboring trade as a day trader in Sydney Australia. He aims to earn approximately $576,000

HOW MUCH TAX WOULD A TRADIE NEED TO PAY:

The automatic tax is $51,667 plus 45 cents for each 1$ over $180,000. If Student 3 earns a NET INCOME of $576,000, after automatic deduction is: $524,333. His tax rate is: 45% for remainder income. That is $178,200 plus automatic $51,667. Total tax due is $229,867.