Compare taxes and see how much you save moving from Australia to UK
Both countries have 45% top rates, but the devil is in the details. UK has the infamous '60% trap' between £100,000-£125,140 where your personal allowance vanishes—effective 60% rate! Australia has no equivalent trap and Stage 3 tax cuts (2024) flattened brackets. At A$120,000 (~£63,000): Australia ~A$31,000 tax, UK ~£13,500 (~A$26,000)—UK is cheaper! BUT UK National Insurance (12%) adds to the burden while Australia's Medicare Levy is just 2%. For high earners above £125K, Australia becomes more competitive. KEY INSIGHT: Australia abolished state income tax in 1942. UK has no state taxes but Scotland has different rates. Choose Australia if: earning >A$200K, want simpler system, value Super contributions. Choose UK if: earning £50K-£100K (avoid trap), want ISA tax-free investing, value NHS.
Top Rate
Plus 2% Medicare Levy
Additional Rate
60% trap at £100K-£125K
At A$100,000-150,000 income:
That is A$167-417/month back in your pocket!
| Income | AU Tax | UK Tax | Savings | 10-Year |
|---|---|---|---|---|
| A$80,000 / £42,000 | ~A$16,467 (incl Medicare) | ~£6,500 + NI (~A$17,500 total) | UK slightly cheaper | ~A$10,000 |
| A$100,000 / £53,000 | ~A$22,967 | ~£9,400 + NI (~A$23,500 total) | Nearly equal | ~A$0 |
| A$120,000 / £63,000 | ~A$31,067 | ~£13,500 + NI (~A$32,000 total) | Nearly equal | ~A$0 |
| A$190,000 / £100,000 (UK trap zone!) | ~A$57,650 | ~£32,000 + vanishing allowance | Australia avoids 60% trap | Complex |
| A$300,000 / £158,000 | ~A$111,000 | ~£58,000 + NI (~A$124,000 total) | Australia saves ~A$13,000 | A$130,000 |
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships
★ 4.3 Trustpilot · 287,413 reviews
Send money at the real exchange rate. Save up to 5x vs banks on international transfers.
⚠ For currency exchange only — not a bank account replacement.
Transfer Money Between Australia & the UK →★ 4.7 Trustpilot · 8,728 reviews
Need to hire internationally or pay contractors abroad? Deel handles payroll compliance in 150+ countries. Trusted by 40,000+ companies. 4.7 stars / 8,728 Trustpilot reviews.
⚠ For employers and companies only — not for individual freelancers or employees.
Hiring Internationally? Deel Handles Compliance →It depends on income level. At £50K-£100K, UK is slightly cheaper (personal allowance helps). At £100K-£125K, Australia wins dramatically (UK's 60% trap is brutal). Above £150K, Australia is generally cheaper due to no National Insurance-equivalent and no trap zones. Compare your specific income level.
Between £100,000-£125,140 in the UK, you lose £1 of personal allowance for every £2 earned. Combined with 40% tax + 2% NI = 60% effective marginal rate. Australia has no equivalent—rates progress smoothly from 32.5% to 37% to 45% with no allowance phase-outs.
Australian employers must contribute 11.5% (rising to 12% in 2025) of salary to Super on top of your wage. UK auto-enrolment minimum is 8% total (5% employee + 3% employer). Over a 30-year career, Australia's Super system builds significantly more retirement wealth.
Both provide universal healthcare. NHS is free at point of use (funded via taxes/NI). Australia's Medicare provides free public hospital care but GPs often charge above the rebate (gap payments of A$30-80 common). Private health insurance is more common in Australia to skip public waiting lists.
UK wins for tax-free investing. ISAs allow £20,000/year to grow completely tax-free (dividends, gains, withdrawals). Australia has no equivalent—capital gains are taxed (with 50% discount if held 12+ months). For long-term wealth building, UK's ISA system is a major advantage.