Savvy workers choosing to work four-day weeks can also slip down a tax bracket.
“Working a four-day week is particularly advantageous where the individual might drop a tax bracket by doing so,” says H“For example, someone on $220,000 a year for five days’ work per week drops down to four days per week, hence their gross salary goes down to $176,000. The 45 per cent tax rate kicks in at $180,000.”While working five days a week, the worker pays $69,667 in tax, with a take-home pay of $150,333.
Earning $150,000 – and in the 37 per cent tax bracket – they paid $40,567 tax and had a net salary of $109,433. For example, someone earning $75,000 would have a net income of $60,158 after paying $14,842 in tax. A four-day week and 20 per cent cut would take their salary to $60,000, with an income of $50,033 after paying $9,967 in tax.
She believes improving housing affordability would help younger Australians move out of home earlier, alleviating some of the burden on parents in the sandwich generation.
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