The Coalition will look to introduce personal tax cuts in 3 stages:
(Now) Increase the 32.5% upper threshold to $90k, and introduce a new tax offset for those on low & middle incomes
(2022) Increase the 19% upper threshold to $41k and 32.5% upper threshold to $120k
(2024) Increase the 32.5% upper threshold to $200k and remove the 37% bracket completely
We note the top tax rate would be unchanged to which there are two schools of thought
a) Firstly, they can afford to pay more tax, so they should.
b) Secondly, the top 3% of income earners already pay 30% of the taxes, and given Australia’s top tax rate is among the highest in the world (US will be 37%, NZ 33%, other countries all reducing theirs) continuing to take half of their income in tax will only drive high-level innovation and growth overseas.
One thing is for sure – it will be an election battleground.
(Our thanks to CAANZ for the image from http://bit.ly/2I3fjah)