AUSTRALIA'S lowest paid workers are also among the lowest taxed, a report says.
A study by chartered accountant UHY Haines Norton found that a single, unmarried Australian whose take-home pay was up to $US25,000 ($A24,141) a year had the third-lowest personal tax rate.
Only Japan and the United Arab Emirates were ahead of Australia in the study, which covered 25 countries including all members of the Group of Eight (G8) nations, as well as the emerging economies of Brazil, Russia, India and China.
UHY tax partner James Tng said the report suggested Australia had found a balance between a progressive and competitive tax system.
"There has been a general easing of the tax rates of low- and middle-income earners over the past decade, beginning with the introduction of the GST in 2000," Mr Tng said in a statement.
"Australia also wasn't forced to raise personal taxes due to the fiscal strength of our economy prior to the global financial crisis where there was little debt and very little in the way of the social security hurdles compared to other European economies."
Australians with take home pay of $US200,000 ($A193,000) were the 14th lowest taxed in the survey.
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