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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Australia VS COUNTRY B Vietnam

Side-by-side analysis of income tax, effective rates, and take-home pay for Australia and Vietnam in 2026.

Daniel · CountryTaxCalc Updated June 2026 Tax Comparison 2026
Calculate your take-home → See all comparisons →
OVERVIEW
Australia has a large and vibrant Vietnamese-Australian community — Vietnam-born Australians are the sixth largest immigrant group in Australia (~270,000 people), with significant communities in Melbourne (Richmond, Footscray, Springvale) and Sydney (Cabramatta). Many Australian-Vietnamese families send money to Vietnam (remittances), and Australian professionals working in Vietnam face a complex tax situation. Vietnam's tax rates are lower than Australia's, but Australian worldwide income taxation rules mean Australians working in Vietnam may still owe Australian tax unless they establish Vietnamese tax residency.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.
🇦🇺
COUNTRY A
Australia
TAX RATE
16–45%
Progressive + Medicare 2%; super 11.5%
FY2025-26: 0% (up to $18,200), 16% ($18,201–$45,000), 30% ($45,001–$135,000), 37% ($135,001–$190,000), 45% (above $190,000); plus Medicare levy 2%; employer super 11.5% (separate from wages). Large Vietnamese diaspora — Vietnam-born is Australia's 6th largest migrant group.
🇻🇳
COUNTRY B
Vietnam
TAX RATE
5–35%
Progressive PIT; BHXH ~10.5% employee
Progressive PIT 5%–35% (top above VND 80M/month ≈ $3,200); employee BHXH 8%, BHYT 1.5%, BHTN 1% = 10.5% total; remittance-based Australian income not taxable in Vietnam; VND ~25,000/USD
TYPICAL ANNUAL DIFFERENCE
Moving from Vietnam → Australia at A$100,000/year
A$12,000–20,000
That's A$1,000–1,665/month back in your pocket
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS INCOME
🇦🇺 AU TAX
🇻🇳 VN TAX
SAVINGS
10-YEAR
A$60,000
A$11,817 + A$1,200 Medicare = A$13,017
Vietnam equiv. ~A$6,000 + social
Vietnam saves A$7,000
A$70,000
A$100,000
A$24,167 + A$2,000 Medicare = A$26,167
Vietnam equiv. ~A$11,000 + social
Vietnam saves A$15,000
A$150,000
A$150,000
A$43,567 + A$3,000 Medicare = A$46,567
Vietnam equiv. ~A$20,000 + social
Vietnam saves A$26,500
A$265,000
A$200,000
A$66,067 + A$4,000 Medicare = A$70,067
Vietnam equiv. ~A$32,000 + social
Vietnam saves A$38,000
A$380,000
A$300,000
A$111,067 + A$6,000 Medicare = A$117,067
Vietnam equiv. ~A$58,000 + social
Vietnam saves A$59,000
A$590,000
💡

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🇦🇺

Australia Pros & Cons

+ PROS
  • Large Vietnamese-Australian community — established diaspora support network
  • Universal Medicare healthcare coverage (2% levy)
  • Employer-funded superannuation 11.5% — significant retirement benefit
  • High wages in absolute AUD terms
  • Australia-Vietnam Free Trade Agreement (AANZFTA)
− CONS
  • 45% top income tax rate + 2% Medicare levy
  • Australian residents taxed on worldwide income — working in Vietnam may still require Australian reporting
  • High cost of living in Sydney and Melbourne
🇻🇳

Vietnam Pros & Cons

+ PROS
  • 35% top income tax rate — far below Australia's 45%
  • Vietnamese-Australian community connections
  • Very low cost of living: Ho Chi Minh City ~80% cheaper than Sydney
  • Australia-Vietnam DTA (1992) in force
  • Growing economy; significant Australian business investment in Vietnam
− CONS
  • BHXH social contributions 10.5% employee
  • Complex annual tax settlement required
  • Currency non-convertible; VND not freely remittable
  • Superannuation does not transfer/continue while working in Vietnam
  • Healthcare requires private insurance for international standard
FAQ

Frequently Asked Questions

Is there an Australia-Vietnam tax treaty?

Yes. Australia and Vietnam signed a DTA in 1992, in force since 1993. The treaty prevents double taxation and defines which country has taxing rights over various income types. Australian residents working in Vietnam are generally taxed in Vietnam on employment income earned there, with a credit available against Australian tax. However, Australian tax residency rules can be complex — Australian citizens working abroad may still be classified as Australian tax residents.

How large is the Vietnamese-Australian community?

The Vietnamese-Australian community is approximately 270,000 Vietnam-born residents plus hundreds of thousands of Australian-born Vietnamese-heritage Australians. Major centres: Melbourne (Richmond, Springvale, Footscray) — largest Vietnamese community by concentration in Australia; Sydney (Cabramatta — known as 'Little Saigon'); Brisbane; Adelaide. Most arrived as refugees post-1975 or through skilled and family migration programs.

Do Australians working in Vietnam still pay Australian tax?

If you remain an Australian tax resident (which depends on your circumstances — domicile, maintained Australian connections), yes — Australia taxes residents on worldwide income. However, the Australia-Vietnam DTA provides that employment income in Vietnam is taxed in Vietnam, and you claim a Foreign Income Tax Offset (FITO) in Australia. If you genuinely cease Australian tax residency by permanently relocating, Australian worldwide tax obligation ends (subject to capital gains on Australian assets).

What does Australian superannuation do for workers in Vietnam?

Australian employees in Vietnam working for an Australian employer may continue to receive superannuation contributions (11.5%) from that employer, depending on the employment arrangement. Local Vietnamese employment generally does not include Australian super. Super accumulated in Australia continues to grow in Australian funds and is accessible at Australian preservation age (60+). There is no Vietnamese equivalent of compulsory super — BHXH pension is the partial analogue but provides much lower lifetime benefits.

What are the main Australian business investments in Vietnam?

Australia is among Vietnam's top 10 foreign investors. Major Australian investments: ANZ Bank (banking operations), Macquarie (infrastructure), BHP (mining sector advisory), and numerous agribusiness, education, and energy companies. Australia-Vietnam trade is facilitated by AANZFTA (ASEAN-Australia-New Zealand Free Trade Agreement). Australian universities (RMIT Vietnam, James Cook University Vietnam) have campuses in Ho Chi Minh City.

How much money do Vietnamese Australians send home?

Australia-to-Vietnam remittances are estimated at USD $1.5–2 billion annually, making Australia one of the top remittance-sending countries to Vietnam. Many Vietnamese-Australian families regularly support relatives in Vietnam. Services like Wise, Western Union, and Commonwealth Bank international transfers are commonly used. Remittances from Australia to Vietnam are not subject to Australian exit tax (it's sending your own after-tax money), but Vietnamese recipients may have reporting obligations for large transfers.
From the brief
PT20%qualifying work, 10yr
IT€300kall foreign income, 15yr
GR7%foreign income, 15yr
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