<p>The Prime Minister of Australia seems to earn around AUD $500,000 <a href="https://en.wikipedia.org/wiki/Prime_Minister_of_Australia#Salary" rel="nofollow noreferrer">according to Wikipedia</a> </p>

<p>This would give him a marginal tax rate of <a href="https://www.ato.gov.au/Rates/Individual-income-tax-for-prior-years/" rel="nofollow noreferrer">45%</a> plus supplements</p>

<p>The <a href="http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0" rel="nofollow noreferrer">average for full-time employees</a> seems to be close to AUD $80,000 which would make typical marginal rates either <a href="https://www.ato.gov.au/Rates/Individual-income-tax-for-prior-years/" rel="nofollow noreferrer">32.5% or 37%</a>  </p>

<p>So the Prime Minister of Australia pays a higher marginal tax ate</p>

CC BY-SA 3.0
2016-11-25T19:17:53.433Z
2016-11-25T19:17:53.433Z
Henry
<blockquote>
<p>In relation to an ordinary employee, the Prime Minister of Australia pays?</p>
<p>a) the same marginal tax rate</p>
<p>b) a higher marginal tax ate</p>
<p>c) a lower marginal tax rate</p>
</blockquote>
<p>My answer for this was a), as it was explained to me that 'marginal tax rates' refers to the tables that are used to calculate tax, but others are debating whether it is b), as the Prime Minister typically falls under a higher tax bracket than others. Would someone care to explain?</p>

<taxation><marginal>
Marginal tax rate question
spastic
# Marginal tax rate question

(Asked by: username_0 on 2016-11-13)

> In relation to an ordinary employee, the Prime Minister of Australia pays?
>
> a) the same marginal tax rate
>
> b) a higher marginal tax ate
>
> c) a lower marginal tax rate

My answer for this was a), as it was explained to me that 'marginal tax rates' refers to the tables that are used to calculate tax, but others are debating whether it is b), as the Prime Minister typically falls under a higher tax bracket than others. Would someone care to explain?

**Tags:** taxation, marginal

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## 1 answers

### Answer by username_1 on 2016-11-25. Score: 2

The Prime Minister of Australia seems to earn around AUD $500,000 [according to Wikipedia](https://en.wikipedia.org/wiki/Prime_Minister_of_Australia#Salary)

This would give him a marginal tax rate of [45%](https://www.ato.gov.au/Rates/Individual-income-tax-for-prior-years/) plus supplements

The [average for full-time employees](http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0) seems to be close to AUD $80,000 which would make typical marginal rates either [32.5% or 37%](https://www.ato.gov.au/Rates/Individual-income-tax-for-prior-years/)

So the Prime Minister of Australia pays a higher marginal tax ate


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