What are the new stage 3 tax cut brackets?
Here's how the proposed plan looks at a glance:
-
Earn up to $18,200 – pay no tax
-
Pay a 16 per cent tax rate on each dollar earned between $18,201-$45,000
-
Pay a 30 per cent tax rate on each dollar earned between $45,001-$135,000
-
Pay a 37 per cent tax rate on each dollar earned between $135,001 — $190,000
-
Pay a 45 per cent tax rate on each dollar earned above $190,000
What were they going to be?
Here's what the previous plan looked like at a glance:
-
Earn up to $18,200 – pay no tax
-
Pay a 19 per cent tax rate on each dollar earned between $18,201-$45,000
-
Pay a 30 per cent tax rate on each dollar earned between $45,001-$200,000
-
Pay a 45 per cent tax rate on each dollar earned above $200,000
It's already 47% above 180k (including the Medicare levy), not to mention the GST on most goods and services. The rich pay the vast majority of the tax in this country, and raising tax rates risks pushing some of them to move overseas. (Which results in less taxes collected overall among other issues). It's a fine balance. The real problem, as I see it, is companies and individuals who find ways to avoid paying taxes. We need to fix the loopholes.
There's also 6.5% payroll tax that we never see.