Retirement Essentials has released a report, produced on behalf of industry super fund HESTA, showing that Australians who receive the age pension but continue to work can incur effective marginal tax rates of between 60% and 80%.
Retirement Essentials found, among other things, that the effective marginal tax rate for a single pensioner will be 78% if their employment income rises from $30,000 to $35,000.
Likewise, the effective marginal tax rate will be 118% for a single pensioner whose income rises from $55,000 to $60,000.
