Compare taxes and see how much you save moving from UK to Australia
The hidden trap: UK has a 60% effective rate between £100,000-£125,140 as your personal allowance vanishes—Australia has no such trap. At £80,000 (~A$155,000), UK charges ~£21,500 (income tax + NI) while Australia charges ~A$40,000 (~£21,000). They're surprisingly close at mid-incomes. Choose UK if: you earn £50,000-£100,000 (sweet spot before the 60% trap), want NHS included, or plan to use ISAs. Choose Australia if: you earn £100,000+ (avoid the 60% trap), want mandatory 11.5% employer Super, or prefer higher base salaries.
Additional Rate
Plus 8% National Insurance
Top Rate
Plus 2% Medicare levy
At £80,000 income:
That is £42/month back in your pocket!
| Income | UK Tax | AU Tax | Savings | 10-Year |
|---|---|---|---|---|
| £50,000 / A$97,000 | £9,432 (tax) + £3,532 (NI) | A$18,067 (incl. Medicare) | Similar (within £200) | ~£2,000 |
| £75,000 / A$145,000 | £16,432 (tax) + £5,532 (NI) | A$35,617 (incl. Medicare) | Australia saves ~£800 | £8,000 |
| £100,000 / A$194,000 | £27,432 (tax) + £6,532 (NI) | A$52,217 (incl. Medicare) | Australia saves ~£6,500 | £65,000 |
| £125,000 / A$242,000 | £42,500 (60% trap zone!) | A$68,000 (incl. Medicare) | Australia saves ~£7,000 | £70,000 |
| £150,000 / A$290,000 | £53,703 (tax + NI) | A$84,000 (incl. Medicare) | UK saves ~£1,000 | £10,000 |
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Hiring Internationally? Deel Handles Compliance →At £100,000: UK charges ~£34,000 (income tax + National Insurance). Australia at the equivalent A$194,000 charges ~A$52,000 (~£27,000). But WARNING: the UK's 60% trap starts here. Earn £110,000 and you'll pay £40,000+ in UK. Australia has no such trap—consistent marginal rates.
Between £100,000-£125,140, UK reduces your £12,570 personal allowance by £1 for every £2 earned. Combined with 40% tax + 2% NI = effective 60% rate. Australia has no equivalent—their thresholds don't phase out. This is the main reason high earners prefer Australia.
Australia mandates 11.5% employer Super contributions on top of salary. UK auto-enrolment requires just 3% employer contribution (plus 5% employee). On a £80,000 salary, that's ~£9,200/year vs £2,400/year into retirement. Over 30 years, the difference compounds to £200,000+.
UK: NHS is free at point of use, funded through general taxation and NI. Australia: Medicare (public system) costs 2% levy on taxable income. Both provide universal coverage, but Australia charges explicitly while UK bundles it in. Private health is cheaper in Australia (~A$2,000/year vs £1,500+ in UK).
At this range, UK and Australia are remarkably similar in total tax burden (~30-33% effective). UK wins slightly because NI rates drop and you're safely below the 60% trap. Australia's advantage only kicks in above £100,000 where the UK trap begins biting.