Salaries in Australia vary slightly from state to state but each state's Government fixes all doctors' salaries. Here are approximate figures for basic salaries in Australia. After overtime and on-call work these salaries will be approximately 15-25% higher.
All the following figures are in Australian $
Approximate Basic Salary 45,000
Estimated Salary after average overtime 50,000
Grossed up pay with salary packaging 55,000
Approximate Basic Salary 55 - 70,000
Estimated Salary after average overtime 65 - 80,000
Grossed up pay with salary packaging 70 - 85,000
Approximate Basic Salary 70 - 80,000
Estimated Salary after average overtime 80 - 90,000
Grossed up pay with salary packaging 88 - 98,000
Approximate Basic Salary 115 - 200,000
Estimated Salary after average overtime 130 - 220,000
Grossed up pay with salary packaging 145 - 240,000
1 Australian$ = 0.7 US $ (USA)
1 Australian$ = 0.4 UK £ (UK)
1 Australian$ = 5.5 ZAR (South Africa)
1 Australian$ = 0.9 CAD (Canada)
1 Australian$ = 0.6 Euro (EU)
These are all approximate figures and in actual fact, the more hours you choose to work, the more you will earn. Basic salary assumes a working week of 38 hours - anything after this will be paid at penalty rates (usually double-pay), so for those looking to increase their salary the option of working extra hours (which is commonly available at many hospitals) can substantially increase your income.
Salary Packaging is a tax minimisation strategy available to all public hospital employees in Australia. It allows you to access up to 30% of your income as tax-free depending on the hospital you work in. This is a system used by almost all hospital employees to substantially increase your take home salary and further information will be available at your hospital finance department.
Tax Rates in Australia
All public hospital employees can access up to the first 30% of their income as tax-free through salary packaging, the remaining 70% will be taxable. Here are the rates of tax for residents in Australia for the remaining salary after salary packaging:
Taxable Income (Australian$) Tax Payable
0 - 6,000 Nil
6,001 - 21,600 Nil +17% of excess over $6,000
21,601 - 52,000 $2,652 + 30% of excess over $21,600
52,001 - 62,500 $11,772 + 42% of excess over $52,000
62,501+ $16,182 + 47% of excess over $62,500
Salary packaging is a tax-minimisation system allowing all hospital employees in Australia to receive up to 30% of their salary tax-free. The basis of this is that hospital employees are exempt form 'Fringe Benefits Tax'. This is normally a tax on all rewards given to employees which do not form the cash component of their salary e.g. company car etc. Due to this special exemption for public hospital employees, there is the opportunity to 'sacrifice' some of your salary and receive it as fringe benefits, which is free from all forms of tax (including income tax).
The way this works in practice is that you designate a proportion of your income (up to a maximum of 30% of total salary in many hospitals) that is to be set aside for expenses including your household mortgage or rent, petrol expenses, household utility bills, computers, holiday travel, eating out at restaurants. On showing the receipts for these items, you can receive your income to the value of these receipts free of tax.
Most doctors try to package the maximum amount and so receive a significant proportion of their income tax-free resulting in reducing their taxable income substantially. On arrival in hospital, you should contact your hospital immediately and ask for further details about salary packaging as it can save you a lot of money.
In addition to salary packaging, most hospitals will give all doctors working in Australia the following benefits:
1. Sick Leave - up to 10 paid days per year
2. Annual Leave - 5 weeks paid leave per year
3. Superannuation (pension) - all doctors working in Australia receive superannuation payments to the value of 9% of their salary (This is paid in addition to your salary and is not deducted from it.) All doctors who work temporarily in Australia may cash their superannuation earned when they leave to return to their home country.
4. Many hospitals will also provide subsidised meals, free or cheap accommodation and other perks.
NOTE: These salary scales are for 2004. For 2005, add 6% to the final figure. For 2006, add 6% for the 2005 figures. Please watch out for taxes also.
Note: Originally posted at http://www.rxpgonline.com/postt29736.html.