Pedro is a foreign resident for Australian income tax purposes. He had 100,000$ of Australian sourced assessable income. He did not have any deductions or offsets.
Pedro's taxable income = 100,000$.
Pedro's tax payable = ( 80,000$ x 32.5% ) + ( 20,000$ x 37% ) = 26,000$ + 7,400$ = 33,400$.
While foreign residents are still subject to a progressive rate structure,
they do not get the benefit of the lower maginal tax rates or the tax-free threshold.