Compared to Income Tax

The first question anyone asks about the Debit Tax system is: How much tax will I pay with the Debit Tax system compared to the Income Tax?

To answer this question - we will make 2 assumptions:

  • Your annual income is $100,000.
  • You spend all of your money.


Income Tax

At the ATO web site you can calculate your tax based on your income. The ATO estimates this to be $24,947.



Debit Tax

To calculate the amount of Debit tax you will pay - is incredibly simple. Remember that with the Debit Tax you do not pay any tax based on your income - only on what you spend.

So - if you spend all of your income of $100,000 - the tax amount you pay is:


$1,000 debit tax = 1% x $100,000 (expenditure)