🇬🇧 UK vs 🇦🇺 Australia Tax Comparison 2025
Planning a move Down Under? Compare UK and Australian tax systems side-by-side. Find out where you'll keep more of your salary.
✅ 2025-2026 (UK) and 2024-2025 (AU) rates
Quick Summary
🇬🇧 UK Advantages
- ✅ Higher tax-free allowance (£12,570 vs $18,200)
- ✅ Better for £30k-£50k earners
- ✅ NHS "free" at point of use
- ✅ ISA tax-free savings
🇦🇺 Australia Advantages
- ✅ LITO reduces tax for lower earners
- ✅ Better for $100k+ earners
- ✅ 11% super on top of salary
- ✅ Better climate!
Tax Brackets
🇬🇧 UK 2025-2026
| Income (£) | Rate |
|---|---|
| £0 - £12,570 | 0% |
| £12,571 - £50,270 | 20% |
| £50,271 - £125,140 | 40% |
| £125,140+ | 45% |
Plus: NI 12% then 2%
🇦🇺 Australia 2024-2025
| Income (AUD) | Rate |
|---|---|
| $0 - $18,200 | 0% |
| $18,201 - $45,000 | 19% |
| $45,001 - $135,000 | 30% |
| $135,001 - $190,000 | 37% |
| $190,000+ | 45% |
Plus: Medicare Levy 2%
Real Examples (£1 = $1.93 AUD)
£40,000 / $77,200 AUD
🇬🇧 UK
- Tax: £5,486
- NI: £2,904
- Take Home: £31,610 (79.0%)
🇦🇺 Australia
- Tax: $15,652
- Medicare: $1,180
- Take Home: $60,693 (~£31,448) (78.6%)
🏆 Winner: UK (slightly better at this level)
£100,000 / $193,000 AUD
🇬🇧 UK
- Tax: £27,432
- NI: £5,724
- Take Home: £66,844 (66.8%)
🇦🇺 Australia
- Tax: $51,592
- Medicare: $3,472
- Take Home: $137,936 (~£71,469) (71.5%)
- Plus: $21,230 super
🏆 Winner: Australia (significantly better + super)
Retirement: Super vs Pension
🇦🇺 Australian Super
- 11% employer (ON TOP of salary)
- Not deducted from pay
- Accessible at 60+
- Example: $100k = $11k super
🇬🇧 UK Workplace Pension
- 5% employer + 5% employee = 10%
- Employee part REDUCES take-home
- Accessible at 55+ (→57 in 2028)
- Example: £100k - £5k contribution
Winner: Australia - Higher, doesn't reduce salary
Other Considerations
- 🏥 Healthcare: NHS free (UK) vs Medicare Levy 2% (AU) - both good
- 🏠 Housing: London expensive, Sydney more expensive
- 📚 Student Loans: UK loans follow you; HECS only if AU tax resident
- ✈️ Distance: Australia is far from family in UK
- ☀️ Weather: Australia wins (not tax-related!)