Compare taxes and see how much you save moving from Indonesia to Australia
Australia hosts approximately 80,000–100,000 people of Indonesian origin (ABS census data), with communities concentrated in Sydney (primarily northwestern suburbs), Melbourne (inner suburbs), and Perth (due to geographic proximity — Perth is closer to Bali than to Sydney). Indonesian-Australians include a mix of migration waves: Indonesian-Chinese Australians (many of whom migrated post-1998 Indonesian crisis), economic migrants and skilled professionals, Indonesian students who remained in Australia after graduation, and partners of Australian nationals. Indonesian tourism to Australia is significant, but the permanent diaspora is smaller than comparable Southeast Asian communities. The Australia-Indonesia economic relationship is substantial: Australia is Indonesia's major investment and trade partner; Australian mining, agricultural, and education sectors employ significant Indonesian-origin professionals. The IDR has depreciated substantially against the AUD over decades — a material factor in AUD/IDR remittance value.
Progressive PPh, 183-Day Residency, IDR Income
Indonesia taxes residents (183+ days/year in Indonesia, or domiciled in Indonesia) under Pajak Penghasilan (PPh) at progressive rates: 5% (IDR 0–60,000,000/year, approximately AUD 0–6,000), 15% (IDR 60,000,001–250,000,000, approximately AUD 6,000–25,000), 25% (IDR 250,000,001–500,000,000, approximately AUD 25,000–50,000), 30% (IDR 500,000,001–5,000,000,000, approximately AUD 50,000–500,000), 35% (above IDR 5,000,000,000, approximately AUD 500,000+). Individual taxpayer identification number (NPWP) required for tax registration. Employee social security: BPJS Ketenagakerjaan (JHT 5.7% combined, JP 3% combined) and BPJS Kesehatan (health, 5% combined). Currency: Indonesian Rupiah (IDR), approximately IDR 10,000 per AUD (2024). IDR has depreciated significantly vs AUD over long periods.
Progressive Income Tax + Medicare Levy + Superannuation
Australia taxes residents at progressive rates: 0% (up to AUD 18,200 tax-free threshold), 19% (AUD 18,201–45,000), 32.5% (AUD 45,001–120,000), 37% (AUD 120,001–180,000), 45% (above AUD 180,000). Medicare Levy: 2% on taxable income. Superannuation Guarantee (employer): 11.5% of ordinary time earnings (2024–25). Non-residents pay 32.5% from the first dollar with no tax-free threshold. Australia taxes residents on worldwide income. The Australia-Indonesia Double Taxation Agreement (1992) prevents double taxation for residents with income in both countries.
At AUD 70,000 annual (Australia) income:
The Indonesia-Australia comparison involves significant wage differentials and a long-term currency depreciation story. The IDR has depreciated approximately 60% vs AUD over the past 20 years (from approximately IDR 6,000/AUD in 2004 to IDR 10,000+/AUD in 2024). AUD savings remitted to Indonesia buy progressively more IDR over time — a significant long-term financial advantage for Indonesian-Australians sending money home. Indonesia's income tax rates (5–30% for most earners) are lower than Australia's for equivalent income levels in IDR terms, but the wage differential means Australian absolute income is far higher.
| Income | ID Tax | AU Tax | Savings | 10-Year |
|---|---|---|---|---|
| AUD 50,000 | ~15% ID (IDR ~500M equivalent — mid brackets + BPJS) | ~27% AU (32.5% bracket + 2% Medicare; tax-free threshold reduces effective rate) | Indonesia lower tax at AUD-equivalent middle incomes; but Indonesian wages at this level are senior management | IDR/AUD depreciation: AUD 50,000 worth approximately IDR 350M in 2004 vs IDR 500M+ today — remittance purchasing power in Indonesia grew significantly |
| AUD 90,000 | ~22% ID (IDR ~900M — approaches 30% top bracket in IDR terms) | ~34% AU (32.5% bracket + Medicare; near bracket boundary) | Indonesia 12% lower at this income level in nominal terms | Australia Superannuation: 11.5% employer contribution on AUD 90,000 = AUD 10,350/year in Super — no Indonesian equivalent for Australian-earned Super |
| AUD 150,000 | ~28% ID (IDR 1.5B — 30% bracket + BPJS caps) | ~40% AU (37% bracket + Medicare; high-income zone) | Indonesia 12% lower at high incomes; high-income Jakarta professionals increasingly aware of this gap | Australia capital gains 50% discount for assets held 12+ months — no equivalent in Indonesia (25% flat rate on capital gains) |
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AUD to IDR Transfers with Wise →AUD-to-IDR transfers are well-served by multiple providers. Wise supports the AUD-IDR corridor with transparent real-rate exchange. Western Union and MoneyGram have extensive Bank Central Asia (BCA), Mandiri, and BRI agent networks in Indonesia. Remitly and World Remit also serve the corridor. Bank transfers via SWIFT to Indonesian bank accounts are straightforward for amounts below Bank Indonesia reporting thresholds. IDR depreciation is a real long-term factor: an Indonesian family receiving AUD 500/month in 2004 received approximately IDR 3,000,000 (IDR 6,000/AUD). The same AUD 500 today delivers approximately IDR 5,000,000+ (IDR 10,000+/AUD) — a 67% increase in IDR-denominated purchasing power from the same AUD amount. For Indonesian-Australians supporting family in Indonesia, this long-term depreciation has made each AUD transfer progressively more valuable in domestic Indonesian purchasing power.
Yes — Australia taxes Australian residents on worldwide income, including Indonesian rental income. An Australian resident who owns property in Bali, Jakarta, or elsewhere in Indonesia must report Indonesian rental income on their Australian tax return (Form I). Under the Australia-Indonesia DTA (1992), Indonesian withholding tax paid on the rental income (typically 20% for non-residents, or lower if DTA applies) can be claimed as a Foreign Tax Credit (FTC) against Australian tax liability on the same income. Practically: if Indonesian withholding tax is 20% and Australian marginal rate on the rental income is 32.5%, you pay 20% in Indonesia and an additional ~12.5% to the ATO (the difference). If Indonesian tax exceeds Australian tax on that income, no additional Australian tax is payable. Indonesian rental income must be converted to AUD at the prevailing exchange rate when reporting to the ATO.
Australian nationals working in Indonesia for 183+ days in any 12-month period are Indonesian tax residents, taxed on their worldwide income in Indonesia. Australian nationals working in Indonesia for less than 183 days may be non-residents for Indonesian purposes, paying Indonesian tax only on Indonesian-source income (typically at a 20% non-resident withholding rate). Under the Australia-Indonesia DTA, employment income is taxable where the work is performed — Australian expats in Indonesia working for Indonesian employers pay Indonesian PPh (not Australian income tax) on their Indonesian employment income. Australian superannuation contributions continue to be made for Australian employees even while working abroad in some cases — the interaction of Australian Super with Indonesian tax obligations should be reviewed with a specialist. Many Australian multinationals in Indonesia provide expat tax equalisation — ensuring the employee's net pay is equivalent to what they would earn in Australia.